Site

The Pančevo Oil Refinery is Serbia's flagship petroleum processing facility and one of the most advanced refineries in Southeast Europe. Located approximately 26 kilometers from Belgrade in the South Vojvodina region, this facility serves as the cornerstone of Serbia's energy security and NIS Group's refining operations.

Historical Development and Capacity

The refinery began operations in December 1968 and has undergone extensive modernization throughout its operational history. The facility currently operates with a maximum annual design capacity of 4.8 million tonnes of crude oil, making it capable of processing approximately 14,660 tonnes per day.

The original construction featured a capacity of 4,000 tonnes per day, which was expanded in 1978 with the addition of new crude processing units that increased capacity to 10,600 tonnes per day. The refinery reached its current maximum capacity following comprehensive modernization programs completed between 2009 and 2020.

Major Modernization Programs

First Phase Modernization (2009-2012)

NIS invested over €547 million in the first phase of modernization, completed in November 2012. This phase centered around the construction of a Mild Hydrocracking and Distillate Hydrotreating (MHC/DHT) complex that enabled the production of Euro 5-standard fuels.

Key improvements included:

• Enhanced refining depth to 84%
• Increased light petroleum yield to 76%
• Annual production capacity of 638,000 tonnes of Euro 5-standard gasoline and 1.538 million tonnes of diesel
• Construction of hydrogen unit, sulfuric acid regeneration unit (SARU), and LPG storage facilities

The SARU (Spent Acid Regeneration Unit), worth €14.3 million, represented a significant environmental advancement by implementing waste-free technology that completely refines spent sulfuric acid for reuse in production processes.

Second Phase Modernization (2017-2020)

The second phase involved the construction of a Bottom-of-the-Barrel (BOTB) complex featuring delayed coking technology, completed in November 2020 at a cost exceeding €300 million.

This phase achieved:

• Refining depth increased to 99.2%
• Light petroleum products yield boosted to 84.6%
• 38% increase in diesel production and 2% increase in Euro 5-quality gasoline
• 7% increase in LPG production
• Commencement of petroleum coke production (Serbia's first domestic production)
• Complete cessation of high-sulfur fuel oil (mazut) production

Processing Infrastructure and Units

The Pančevo refinery features a comprehensive array of processing units that enable sophisticated crude oil refining operations:

• Atmospheric crude oil distillation unit
• Vacuum distillation unit
• Visbreaking unit
• Fluid Catalytic Cracking (FCC) unit
• Delayed Coking Unit (DCU) - commissioned in 2020 with 2,000 tonnes per day capacity
• Aromatics extraction unit
• Alkylation unit
• Hydrodesulfurization unit
• Mild Hydrocracking complex
• Gas treatment unit
• Naphtha redistillation unit
• Bitumen unit
• Sour water treatment unit
• Merox units
• Hydrogen production unit
• Sulfuric acid regeneration unit (SARU)

Product Portfolio and Output

The refinery produces a diverse range of petroleum products to meet both domestic and regional market demands:

Motor Fuels:

• Euro 5-standard gasoline
• Euro 5-standard diesel fuel
• Aviation fuel (jet fuel)

Other Products:

• Liquefied Petroleum Gas (LPG)
• Fuel oil
• Bitumen
• Petroleum coke (since 2020)
• Petrochemical feedstocks
• Solvents

The facility supplies approximately 80% of Serbia's gasoline and diesel demand and 90% or more of jet fuel and heavy fuel oil requirements.

Storage and Logistics Infrastructure

The refinery features extensive storage capabilities with approximately 700,000 cubic meters of storage capacity for crude oil and petroleum derivatives. The facility benefits from an extremely favorable logistical position, located just 20 kilometers from Belgrade and 2 kilometers from the Danube River.

Supply Chain Infrastructure:

• Pipeline connectivity through Croatia via the Krk-Pančevo pipeline system (6 million tonnes per year capacity)
• River transport facilities at the Danube for barge loading/unloading
• Railway transport facilities for tank car operations
• Road transport capabilities for truck loading/unloading

The refinery processes both imported crude oil (70-80% of total throughput) and domestic crude oil from Vojvodina fields (20-30%). Crude oil is supplied primarily through the Croatian pipeline system and by Danube River barges from Romania and Hungary.

Current Operational Challenges

As of October 2025, the Pančevo refinery faces significant operational challenges due to US sanctions on NIS's Russian ownership. The Croatian pipeline operator JANAF has cut off crude oil deliveries, potentially limiting refinery operations beyond November 2025 without alternative supply arrangements.

Despite these challenges, the Pančevo refinery remains Serbia's sole oil refining facility and continues to represent one of the most technologically advanced and environmentally compliant refineries in the Balkan region.