The Shanghai Electric Group has been contracted to build a 200 MW cogeneration plant in Serbia

The $210m gas-fired cogeneration plant will supply the Pancevo oil refinery, run by Serbian oil company NIS. It is a joint venture between NIS, majority owned by Russia’s Gazprom Neft, and Gazprom Energoholding, a subsidiary of Russian gas giant Gazprom, in which the two firms will hold 49 and 51 percent stake respectively.

The Pancevo refinery will be the chief beneficiary, while a portion of electricity will go to Serbia’s energy market, said NIS.
Serbian flag
Construction will start in the second quarter of 2018 and the plant is expected to be online in the last quarter of 2019.

One of the biggest contributors to Serbia’s budget, NIS operates two refineries and produces 1.7 million tonnes of oil and gas equivalent per year. Gazprom Neft owns 56.15 percent of NIS while the Serbian government owns 29.88 per cent and small shareholders own the remainder.

NIS CEO Kirill Tyurdenev said: “TPP construction in Pancevo is a project representing one more guarantee of energy stability in Serbia.

“Reliability of electrical and heat power supply to Pancevo Refinery and additional volumes of electrical power to be placed on the market will ensure the required energy stability for the country’s citizens.”

TE-TO Pancevo director Aleksandr Varnavsky said: “Use of modern heat and power cogeneration technologies in construction will provide for production of environmentally friendly energy.