Gazprom Enters Serbia's Power Market

Russian giant Gazprom subsidiaries have started work on a 200-MW combined-cycle gas turbine (CCGT) plant in Serbia, the company said March 7. The project is a joint venture between Gazprom (51%) and Serbian integrated energy company NIS, itself  56.15% owned by Gazprom Neft. The Serbian government owns 30%.

The power will be sold in Serbia and abroad and the heat will be used in NIS' refinery near the site. The gas will come from Gazprom, which is extending the 15.75bn m³/yr TurkStream through Serbia from Bulgaria. A 51-49 joint venture between Gazprom and Srbijagas, Gastrans, is to work on that section of the line.

According to a Reuters report, the Serbian energy regulator AERS gave Gastrans the go-ahead  early March to proceed with the project, exempting it from the EU’s third energy package that would have made third party access mandatory. 

The $200mn Pancevo CCGT is the first of Gazprom Energoholding’s participations in CCGTs abroad, but NIS has built several small-sized CCGTs abroad.

Chinese Shanghai Electric Group was selected in October 2017 as the contractor for turnkey construction, due to complete by 2020.

NIS operates two refineries, several oil and gas projects as well as small-sized power plants in Serbia and neighbouring countries, investing $3bn as of end-2018.

NIS spent $390mn last year on developing projects, 55% more than 2017, according to company. The company plans to invest further $2bn by 2025, its plans also including windfarm in Serbia.