Kazakh-Romanian Energy Investment Fund approves two new projects for the Petromidia refinery

The Kazakh-Romanian Energy Investment Fund (FIEKR) has recently approved two new investment projects in total amount of 43 million USD related to the Romanian energy sector. These projects will create synergies to the production processes of the Petromidia Năvodari refinery (part of the company Rompetrol Rafinare) and economic added value for both companies.

“The Kazakh-Romanian Energy Investment Fund continues its investment plan for the development of energy projects, which will create new jobs, budget contributions,” state of the art” technological input, but also with an impact on supporting the local economy (services, products, etc.). At the same time, it will ensure a rentability level around 11% for the two shareholders of the Fund – KMG International and Societatea de Administrare a Participaţiilor în Energie”, states Iskander Abdibaitov, Chairman of the Management Committee of the Kazakh-Romanian Energy Investment Fund.

The first project aims the construction of a dewaxing plant on Petromidia platform, which will allow the refinery to significantly improve the process of obtaining diesel fuels in the wintertime.  At the same time, the integration of the new dewaxing plant into the technological flow of the refinery will also allow an increase in the production of aviation jet fuel, leading to the strengthening of local energy security.

The impact of the dewaxing plant will also be reflected in an increase in Rompetrol Rafinare’s contribution to the state budget (excise duties, VAT).

With an estimated completion time in September 2022, the investment value of this project amounts to about USD 35 million, the direct contribution of the Fund being about 30% and the difference following to be drawn by from local and / or international financial sources.

The second major project recently approved by FIEKR aims to finance the consolidation and increase process by more than 30% the production of polymers within the petrochemical division of the Petromidia refinery, the sole producer in Romania in this field.

The project of consolidation and increase of polymer production aims to convert the high-density polyethylene (HDPE) plant into a Polypropylene plant (PP), with the annual polypropylene production capacity following to increase from 90,000 tonnes presently to 120,000 tonnes by 2022.

The conversion will enable the consolidation of the jobs for 75 employees and increase by about USD 0.5 million the annual contribution of Rompetrol Refining to the state budget.

The investment amounts to about USD 8 million and will ensure production alignment with the demand for petrochemicals on the regional market. With the completion date of June 2021, the project will be fully financed from the Fund’s own resources.