Serbia's Pančevo refinery may halt operations due to low Danube water levels

Serbia is grappling with severe energy sector problems, as President Aleksandar Vučić warned that the Pančevo refinery might have to temporarily suspend operations due to critically low water levels in the Danube River. The refinery requires the Danube for several key processes, and a further drop in water levels could impact navigation, forcing a shutdown within days.

"We have many, many problems," Vučić told reporters, explaining that while the Danube remains navigable, cargo must be reduced to 50% capacity. He also cited numerous issues with international oil price benchmarks. "We will endure countless economic problems and, God forbid, another refinery shutdown. I hope there will be no need," he said, adding that the country would try to withstand the economic impact but could not if oil prices continued to rise, leading to shortages of oil and diesel.

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We will endure countless economic problems and, God forbid, another refinery shutdown. I hope there will be no need. We will endure all of that with money, economically, but you cannot endure if the quotations continue to rise. There is no oil, no diesel.

The situation is compounded by challenges in hydropower production, with the Đerdap hydroelectric power plant recording its lowest output in May, June, and July since its operation began. Prime Minister Đuro Macut urged citizens to conserve electricity due to the prolonged heatwave and increased consumption, describing the energy sector's situation as "serious and demanding." Minister of Energy Dubravka Đedović Handanović echoed these concerns.

An emergency session of the Republic's Crisis Headquarters is scheduled for Tuesday to discuss the current situation and implement measures to preserve energy stability. Vučić assured citizens that they would be informed when there is cause for concern, but emphasized the need for rational energy use in the coming days.

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The situation in the energy sector is serious and demanding.