Serbia’s NIS plans upgrades at Pancevo refinery

Serbia’s Naftna Industrija Srbije (NIS) will begin a planned modernization overhaul of its 98,000-b/d Pancevo refinery beginning Sept. 1, the company reported.

Designed to ensure reliable operations and increase production volumes of high-quality petroleum products, the project will involve the renovation of all refining processes at the plant as well as replacement and inspection of refinery equipment, NIS said.

Work related to the $5.5 million modernization project is scheduled to run until Sept. 30.

NIS plans to implement a variety of separate projects as part of the refinery revamp, including ongoing work to automate production processes for primary and secondary units to consolidate monitoring of all the refinery’s processing activities.

The company also will install a system to optimize combustion in the refinery’s furnace, which will provide a savings of up to 20% in energy costs at the site, NIS said.

The modernization project also will involve maintenance on the refinery’s heat exchanger and reconstruction of boilers in the related power plant.

Work related to the installation of a closed-drainage system as well as a closed sampling system will likely continue through the restart of commercial operations, NIS said.

Regarding supply commitments, NIS said the Pancevo refinery has produced and stored ample petroleum product supplies ahead of the planned overhaul to meet customer needs during the shutdown period.

The company said it expects the modernization and optimization overhaul at Pancevo will result in increased production of Euro 5-quality gasoline, diesel, and jet fuel, which will enhance the refinery’s opportunity to increase exports of high-quality products to surrounding countries.

NIS previously completed upgrades at Pancevo to enhance production of high-quality gasoline in August 2013, including a modernization of the plant’s fluid catalytic cracking complex, according to an Aug. 22, 2013, release from the company.

In November 2012, the company commissioned a new hydrocracking and hydrotreating complex at the Pancevo refinery to enhance output of Euro 5-standard fuels, NIS said in a Nov. 2, 2012, release.

NIS is jointly owned by JSC Gazprom Neft, 56.15%; the Republic of Serbia, 29.87%; as well as current and former employees, citizens, and other minor shareholders, 13.98%.

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