NIS Starts Utilizing Cogeneration Modules at “Kikinda gornje” and “Velebit” Carbonate Reservoirs

December 20, 2013

NIS has started the commercial utilization of three cogeneration modules installed on the company carbonate reservoirs "Kikinda gornje" (the municipality of Kikinda), and "Velebit" (the municipality of Kanjiža). Thus, the company has continued with the implementation of the project of development of cogeneration capacities, whose aim is to utilize the associated petroleum gas, which is part of a long-term program of increasing the efficiency of use of the NIS gas resources. The total projected electricity generating capacity of three cogeneration modules, of which two are located at the "Velebit" carbonate reservoirs, amounts to 2,985 kW, and has an annual electric power production volume of 22,900 MWh. The total heat energy generation capacity is 3,200 kW, and the volume of produced heat energy is up to 25,600 MWhv a year. The total volume of investments in the construction of three modules is EURO 3.7m, and the equipment suppliers are the companies Jenbacher (Germany) and Caterpillar (USA). The principle of operation of the cogeneration module is based on the conversion of the associated petroleum gas into heat and electric energy. The electric power produced by the modules is envisaged to be delivered to the domestic electrical energy market, whereas the heat energy will be used to provide for the needs of the NIS oil wells and carbonate reservoirs. The savings on the funds for the procurement of energy generating products will in this case run as high as 40%. Four additional cogeneration modules are planned to be constructed by the end of the current year at the company oil deposits, and the volume of investments in the program, based on the results from 2013, will amount to at least 10m EURO. The total sum of investments in the program of increasing the efficiency of use of the company gas resources will be around six billion dinars. "In 2014, the volume of gas which is processed by the cogeneration modules will be 16.2b cubic meters, and 35% of this volume will be used by the modules at the "Kikinda gornje" and "Velebit" carbonate reservoirs. Modern technologies used in the cogeneration will enable the NIS "Exploration and Production" Block to reduce the costs via maximum saving of electrical and heat energy. The development of the cogeneration capacities will allow the company to increase its technological base for the production of electrical energy, which the domestic market will need after its full liberalization in January 2015," said Nenad Pavlović, Director of the Department for Investment Project Support of the NIS Energy Block.