The Deputy Prime Minister of the Republic of Serbia and the Minister of Mining and Energy Zorana Mihajlović, visited today the CCPP Pancevo. The Minister observed the production units, the central control room, as well as other parts of the CCPP, and on that occasion she spoked with the employees of TE-TO Pancevo. This event was also attended by the Deputy Minister of Mining and Energy Rasa Kojcic, the Mayor of Pancevo Aleksandar Stevanovic, the Director of Gazprom energoholding Serbia TE-TO Pancevo LLC Alexander Varnavskiy, the CEO of NIS JSC Novi Sad Kiril Tyurdenev, representatives of Shanghai Electric Group Co., Ltd., representatives of the embassies of the Russian Federation and the People's Republic of China in the Republic of Serbia and journalists.

Subsequent to visiting the CCPP, the Minister Zorana Mihajlovic stated the following: "This facility is important in terms of cogeneration, efficiency in production and environmental protection, but also in terms of greater energy security."

Particularly emphasizing the support from the shareholders and the Ministry of Mining and Energy of the Republic of Serbia in overcoming all the difficulties encountered by this project implementation participants, Alexander Varnavskiy underlined that, at the moment, the CCPP commissioning activities are underway.

Background Information

Gazprom Energoholding, a wholly-owned subsidiary of PJSC Gazprom, is a special-purpose company that manages the companies of the Gazprom Group in the power generation sector.

In June 2018, the Gazprom Board of Directors approved the Company’s power generation strategy for 2018–2027. The document provides for, among other things, the diversification of Gazprom’s power business by entering promising foreign markets.

At present, Gazprom Energoholding Group, in cooperation with NIS jsc. Novi Sad (Gazprom Neft Group), is constructing a combined cycle steam and gas thermal power plant in Pancevo in the vicinity of the Pancevo Oil Refinery. The generated thermal energy will be used to meet the needs of the Pancevo Refinery, and electricity will be sold on the electricity market of Serbia and neighbouring countries.

Based on a Shareholders’ Agreement, a joint company, Gazprom energoholding Serbia LLC, was founded, with Gazprom Energoholding owning 51% of shares and NIS jsc. Novi Sad owning 49%. To manage the construction and further operation of the CCPP Pancevo, a wholly-owned subsidiary of Gazprom Energoholding Serbia LLC named Gazprom Energoholding Serbia TE-TO Pancevo LLC was established. Based on the results of the tender procedure, Shanghai Electric Group Co., Ltd. was selected as the main contractor for the turnkey construction of the combined cycle power plant.

Combined cycle power units have significant economic and environmental advantages over traditional steam power and coal-fired generating equipment. In particular, in comparison with traditional power units operating on the brown coal used in Serbia, their operation does not lead to formation of multi-ton waste, being ash and there are no emissions of solid substances and sulfur oxides into the atmosphere.