China Energy to complete new Serbian refinery in four years - report

The Serbian government signed the 2.4 billion euro framework agreement with China Energy International Group for the construction of the Smederevo refinery as a greenfield investment earlier this month.

The framework agreement was signed with a validity period of two years, Djedovic Handanovic told daily Politika in an interview on Friday.

The new facility will have a processing capacity of up to 100,000 barrels a day and will produce oil derivatives in accordance with the highest technological, ecological and product quality standards of the European Union, she said.

The facility will have 700 permanent workers and will employ further 2,400 workers indirectly.

Serbia currently has one oil refinery, operated by Serbian oil and gas group NIS, controlled by Russia's Gazprom. The existing refinery is located in Pancevo, some 20 km north-east of Belgrade.

According to the plan, Serbia will build an oil pipeline from Pancevo to the location of the planned Chinese refinery in Smederevo, some 45 km to the southeast, in order to supply the future facility with crude oil, Djedovic Handanovic noted.

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