Fuel quality improvements in the Republic of Serbia

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Republic of Serbia Ministry of Agriculture and Environmental Protection Fuel quality improvements in the Republic of Serbia Jasmina Bogdanovic, Air and Ozone Layer Protection Unit

Environment and the fuel quality issues There is a direct linkage between: Fuels quality and fuels standards; Fuels quality testing and monitoring; Crude oil production on national level and import of fuels; Air emissions from the mobile sources; Vehicles number, age structure and distribution according the type of fuels; Air pollution monitoring; Air quality assessment;

Institutional framework on fuel quality regulation and enforcement Ministry of Mining and Energy responsible for issuing regulations which prescribe the liquid fuels quality, as well as for determination of maximum level of oil derivatives prices Ministry of Trade responsible for quality control of goods which are distributed on the market of Republic of Serbia * Trade Inspectorate within the Ministry of Trade fuel quality control and for enforcing breaches of the national provisions Ministry of Finance responsible for excise and tax policy Institute for Standardization responsible for the adoption of Standard Serbian Accreditation body performs work related to accreditation of competent laboratories

Situation on fuel quality over the past years Rulebook on technical and other requirements for liquid fuels of crude oil origin Unleaded motor petrol Diesel fuel* Unleaded motor petrol (leaded) Motor petrol* * Until 2010 Type PREMIUM 95 REGULAR 92 Rulebook Type Maximum allowed lead content [g/l] PREMIUM 95 REGULAR 92 0,013* Normal MB 86 0,600 Regular MB 92 0,400 Premijum MB 95 0,400 Super MB 98 0,600 Rulebook Maximum allowed sulphur content [mg/kg] 650* D2 10.000 D2S 2.000 D1E 5.000 Gothenburg protocol Annex VIII 50 * Until 2013 HM protocol Annex VI 0,013/0,15 * Until 2013

Statements from the national strategic documents concering fuel quality in that time Energy sector development strategy of the Republic of Serbia to 2015, for period of 2007-2012 (2005) The improvement of the petrol and diesel fuels quality, i.e. reaching the European level in the quality of oil derivatives in the domestic refineries is also not only an environmental objective determined by this Strategy, but also a political objective for the purpose of the accession of Serbia to the EU. It is possible to achieve this objective only by the modernization of the existing installations and the construction of new ones The Law on Ratification of Agreement between the Government of the Republic of Serbia and the Government of the Russian Federation on cooperation in the field of oil and gas economy (Official Gazette of RS - International Agreements No. 83/2008) The current requirements in terms of quality of oil products produced during the period until completion of the reconstruction and modernization of the technological complex of the Petroleum Industry of Serbia, must be retained. National Program for Integration in EU (2008) defined that in 2012 at earliest a technical regulations introducing provisions of the EU Directives related to the quality of petrol and diesel fuel must be developed

NIS (Petroleum Industry of Serbia) Only one company which produces oil derivates in the Republic of Serbia The project of modernizaton of the Refinery in the city of Pančevo is the result of the Agreement on strategic cooperation between the Russian Federation and Republic of Serbia in oil and gas field signed in 2008 Gazprom Neft s subsidiary NIS has completed in 2012 a major modernisation project of its refining capacity in Serbia Strategic goals until 2015 predict full adjustment with European and national principles of environmental protection, as well as improvement of technologies and products and construction of new facilities The company has started operating a new light hydro-cracking and motor fuel hydro-treatment facility (MHC/DHT) at Pančevo refinery Source: www.nis.eu

Steps undertaken to improve the environmental protection Gazprom Neft has invested EUR 547 million at NIS in upgrading and rebuilding, including EUR 397 million on building the hydro-cracking facility in Pančevo refinery and over EUR 150 million on modernising the refinery infrastructure, equipping the hydrogen facility and on ecological projects Environmental projects are primarily guided by the concept of cleaner production and application of best available techniques (BAT) In 2010 the production of leaded petrol was phased out Since 2011 the content of Pb in petrol produced in country has been reduced to 0.013 g/l Since 2013, there is production only of petrol that meets the EU standard (Pb 0,005 g/l) and diesel fuel with 10 mg/kg of S Source: www.nis.eu

Present status of the legal framework on fuel quality Law on technical requirements for products and conformity assessment (Official Gazette of RS, No 36/09) The Rulebook on technical and other requirements for liquid fuels of crude oil origin (O.J. R.S 123/2012, 63/2013, 75/2013) Unleaded fuel can be placed on the market only if it complies with the SRPS EN 228 Standard Diesel fuel can be placed on the market only if it complies with the SRPS EN 590 Standard

Present fuel quality requirements Level of compliance with EU Fuel Quality Directive 98/70/EC as amended by Directive 2009/30/EC PETROL GAS OILS max S content max Pb content max S content Directive 98/70/EC 10 mg/kg 0.005 g/l 1000/10 mg/kg *01.01.2011 EURO BMB 98 (EN 228) 10 mg/kg 0.005 g/l EURO PREMIUM BMB 95 (EN 228) 10 mg/kg 0.005 g/l EURO DIESEL (EN 590) / / 10 mg/kg GAS OIL 0.1 (non-road mobile machinery, agricultural and forestry tractors) / / 1000 mg/kg GAS OIL EURO (energy fuel) / / 0.1 %

NIS (Petroleum Industry of Serbia) Production of petrol and diesel fuels that meets the EU standards Euro Premium BMB 95 Euro 5 Diesel tones/year *Data for 2014 and 2015 Source: www.nis.eu

State of the vehicles fleet in Serbia The transport volume has been importantly increased in the period between 1995 and 2012 Total number of road vehicles (cars, LDV, HDV, mopeds & motorcycles) in Serbia for 2012 is 1.980.069 source: Ministry of Interior The number of registred cars 1990-2012 The average age of passenger cars in Serbia is 14,8 years 34% Passenger cars Petrol Diesel LPG 20% 46% 2000000 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 1990 1995 2000 2005 2010 2011 2012 The number of registred cars

Improvements in reducing Pb emissions in the air 250 Pb emissions from the road transport 200 150 100 Road transport: Passenger cars Road transport: Light duty vehicles Road transport:, Heavy duty vehicles Road transport: Mopeds & motorcycles 50 *COPERT IV model of the European Environmental Agency 0 1990 1995 2000 2005 2010 2011 2012

Main conclusions and further efforts Since 2010 significant progress has been achieved on the national legislation and implementation in the field of fuel quality placing leaded petrol on the market was banned! Meeting the requirements of European standards for Euro 5 product quality Ratification of the 1998 Protocol on heavy metals in 2012 Total emissions of Pb originated from road transport are now significantly reduced compared to previous years The need to continue with the efforts towards EU requirements on fuels quality sulphur content in heavy fuel oil used in plants is still significantly high (3%) SO 2 emissions in the air

Jasmina Bogdanovic Ministry of Agriculture and Environmental Protection jasmina.bogdanovic@merz.gov.rs Republic of Serbia Ministry of Agriculture and Environmental Protection Thank you