Start of Operations for NIS Small Power Plants at Gas Reservoir in Srbobran

December 1, 2014

The total gross electric capacity of these small NIS power plants is 2 МW, the annual consumption of natural gas will be up to 7.2 million cubic metres and the investment is worth around two million Euros. The equipment is supplied by Caterpillar (USA), and the works were performed by the Serbian company Tehnox Group. Small power plants in Srbobran included, NIS now has seven small power plants in commercial operation at five locations and with the total capacity of 6.2 МW. By the end of the year, four more power plants will be put into operation with six units of total electric capacity of 5.3 МW, which means that the electric capacity owned by NIS will thus reach 11.5 МW. The total amount of investments in small power plants in oil and gas fields has reached 15 million Euros. This project has been implemented as part of the small cogeneration capacity development programme, cogeneration being a segment of the long-term corporate strategy aimed at increasing operational efficiency owing to the rational use of the existing gas resources. The produced electric power is sold in the market, while thermal energy is used for own consumption in oil fields, i.e. to heat oil reservoirs, related equipment and facilities. NIS is also offering free thermal capacities and delivery of thermal energy at a competitive price to entrepreneurs who would like to build their production units next to oil and gas fields. “Small power plants in oil and gas fields generate electric and thermal energy out of gas that cannot be delivered to the public gas network operator due to a high content of inert gases, i.e. carbon dioxide and nitrogen. In this way NIS contributes to the implementation of the set strategic objectives of the Republic of Serbia in terms of sustainable development, i.e. rationalisation of energy consumption and reduction of energy conversion pollution since the fossil fuel resource is used, which has not been used so far, and this has been done in a highly energy-efficient and ecologically friendly manner,” assessed Alexander Varnavskiy, Deputy Director of Energy.