NIS Speaks about Refining Business at the 6th Oil Forum organized by the Energy Community

September 30, 2014

Mr Chris Beddoes, President of the FuelsEurope Professional Association stated that the refining was the EU strategic industry. "This industry generates 23 billion of added value to the EU economy per year and based on the number of employees it is classified among the two most important industries," said Beddoes. He also added that the EU regulations put pressure on refining business already burdened by the dependence arising from oil import, reduced utilization of refining capacities and high costs of energy generating products which accounted for 60% of the total operating costs. "One of the EU requirements is to reduce the emission of carbon dioxide. Currently, the EU accounts for 11 % of global CO2 emissions. "Even if the EU halves its share in the global pollution, it will neither prevent global warming nor Europe is the one that will save the world ", said Beddoes. Mr Dmitry Vasiljev, Director of Department for Development and Investments in the Refining, spoke about the modernization of refining capacities through three phases from the arrival of Gazpromneft as majority shareholder in NIS. "The first phase was the modernisation of plants in Pančevo, the worth of which exceeds 500 million EUR. The production of base oils in Novi Sad and Bottom of the Barrel Project in Pančevo are yet to come. The intention is to produce 41 %of the euro quality diesel in Pančevo by 2018 and virtually eliminate the production of heating fuels", stated Vasiljev. Among other things, in the course of refining panel, the participants reached the conclusion that in future the diesel share in consumption will continue to rise. The EU Tax Policy is such that it encourages car manufacturers to develop diesel-driven engine technologies.