The managing board of the Kazakh-Romanian Energy Investment Fund, set up by KazMunayGas (KMG) International as part of a debt settlement with the Romanian state, held its first meeting on March 6, when it agreed on the first two investment projects.

A special purpose vehicle (SPV) will be used to raise USD 230 million for building a co-generation plant (CHP) on Petromidia petrochemical platform operated by KMG International through its subsidiary Rompetrol Rafinare, and for developing a chain of fuel stations locally.

The two shareholders of the Kazakh-Romanian Energy Investment Fund are the Romanian Energy Ministry through the Energy Participation Management Company (SAPE, 20%) and KMG International (80%). The fund was set up as a result of the Memorandum of Understanding concluded by the two parties in 2013.

The CHP plant will be built in 4 years and will provide heat and hot water for the inhabitants of Năvodari. It will also deliver electricity and steam to support production activities on the Petromidia platform. The new plant will use natural gas to produce heat and energy. The fuel station network will be developed in about five years, the beneficiary being Rompetrol Rafinare.

The main shareholders of Rompetrol Rafinare are KMG International (54.63% - direct and indirect) and the Romanian State through the Ministry of Energy (44.7%).

editor@romania-insider.com

(Photo source: Facebook / Rompetrol-KMG International)