Serbia’s Pančevo refinery output and diesel supply in August
Serbia’s Pančevo refinery, operated by NIS, started August crude processing at about 11,000 tonnes per day, rising to nearly 13,000 tonnes per day by month-end. Diesel demand in the country reached around 200,000 tonnes. Domestic refining supplied close to 160,000 tonnes, while imports accounted for approximately 32,000 tonnes.
Low water levels on the Danube complicated fuel imports. Almost half of the imported volumes were moved by rail as a result. The disruption pointed to the need for logistics infrastructure alongside refining capacity to move crude and finished products through the region.
For Serbia, maintaining supply extended beyond access to international oil. Continuity depended on whether crude and refined products could be transported reliably along available routes under more difficult operating conditions.
NIS licence extension and US authorisation for NIS ownership talks
Sanctions also affected operating certainty for NIS. US authorities extended NIS’s operating licence until September 30, covering crude imports, refining and transactions required to maintain supply continuity. MOL received US authorisation during the same period to continue negotiations on a potential acquisition of a majority stake in NIS.
This situation leaves NIS exposed to a combination of operational, logistical and geopolitical factors. The assessment of the company’s strategic role therefore includes not only its refining and fuel-distribution functions, but also unresolved issues related to ownership and sanctions exposure.
OMV Petrom’s Petrobrazi hydrogen electrolyser and SAF/HVO plans
Romania’s refining investment priorities differ from Serbia’s focus on conventional fuel security. At OMV Petrom’s Petrobrazi refinery, the company completed delivery of modules for a second 35 MW green-hydrogen electrolyser. With an additional unit already planned, total electrolyser capacity is expected to reach 55 MW.
The project targets approximately 8,000 tonnes per year of green hydrogen production. The hydrogen is intended to support refinery operations as well as a planned 250,000-tonne-per-year SAF/HVO facility.
The second electrolyser is supported by around €29 million in Romanian recovery-plan funding. The hydrogen and lower-carbon fuels investment link refinery activity directly to the emerging market for SAF and renewable fuels.
Diverging refining investment priorities across Southeast Europe
The Pančevo and Petrobrazi developments illustrate a split in Southeast Europe’s refining investment direction. Serbia is prioritising resilience for conventional fuel supply, while Romania is positioning existing refining infrastructure for a lower-carbon European fuel system.
Both paths require significant capital. For traditional refining, key variables include crude access, transport resilience, sanctions and ownership stability; for lower-carbon projects, attention shifts toward technology, policy support, hydrogen economics and access to emerging SAF and renewable-fuel markets.
The long-term value of refineries in Southeast Europe will increasingly depend on combining security of supply with logistics resilience and stable ownership structures alongside credible pathways into lower-carbon fuels.
