Serbian energy minister: Pancevo oil refinery to operate until November 25, gas negotiations with Gazprom continue

“The oil refinery in Pancevo will continue to operate smoothly until November 25. We are closely monitoring the market situation. Our mandatory and commodity reserves, as well as the Serbian Oil Industry’s (NIS) storage facilities, are full to prevent any market disruptions,” said Djedovic Handanovic in a press release.

The US has imposed sanctions on the Serbian Oil Industry (NIS) due to its majority Russian ownership.

The minister explained the situation is further complicated by sanctions imposed on the oil company Lukoil, which operates in Serbia and holds a valid operating license until November 21, as well as by a fire that had broken out at MOL’s refinery in Hungary.

“We are in daily communication with oil companies present in our market, discussing market conditions, challenges, and security of supply. We are increasing imports of oil derivatives, despite various limitations in transportation and logistics. Additionally, NIS will increase supply volumes to smaller petrol stations as one measure to ensure equitable distribution, but we are also implementing other measures,” the minister added.

Djedovic Handanovic said that negotiations for a long-term natural gas supply agreement with the Russian Federation are underway, and that there will be no disruptions to supply.

“We are secure in terms of natural gas supply for this heating season because we filled our storage facilities on time and continued to store gas in Hungary. We currently have approximately 534 million cubic meters of gas stored. We are also working on expanding the Banatski Dvor underground gas storage facility, so next year, Serbia’s minimum storage capacity will be 750 million cubic meters of gas. At the same time, we continue to diversify supply routes and build new interconnections with Romania and North Macedonia. Serbia will not run out of gas, heating plants will have sufficient energy resources. We have 67,000 tons of state-owned heating oil, and EPS (Serbian power company) has 57,000 tons, while we continue to negotiate a long-term gas arrangement with Gazprom,” the minister said.