State-owned Russian energy giant Gazprom has begun construction of a combined cycle thermal power plant (TPP) in Pancevo, Serbia in an event attended by representatives of the Serbian government, Gazprom as well as various contracting companies and local municipal authorities.

The Pancevo TPP will have a power capacity of 200 MW an is the first of Gazprom Energoholding Group’s projects to be implemented outside of Russia and the first thermal plant of its kind in Serbia.

The two-hectare construction site is on an industrial estate nearby the Pancevo Refinery, which is owned by NIS a.d. Novi Sad, part of the Gazprom Neft Group, according to industryeurope.com.

The TPP, set to be commissioned in 2020, will generate heat, which will serve the requirements of the Pancevo Refinery, and electricity which will be sold in Serbia and its neighbours.