KMG in talks to buy Black Sea LPG terminal

KMG International, the former Rompetrol group, is currently negotiating to take over the Romanian firm Octogon Gas & Logistics, owned by the Romanian investor Corneliu Idu, reports local Economica.net. The company controls the largest liquefied petroleum gas (LPG) terminal in the Black Sea. “We ponder expanding our business with liquefied petroleum gas (LPG) by a possible takeover of Octogon, which owns an import and export terminal in the Midia port, near the Petromidia Navodari refinery, with a total storage capacity of 4,000 cubic meters,” according to KMG International. The acquisition would help the company expand its operations in Central and Eastern Europe. KMG International has its own LPG terminal in the Midia port, which was completed in 2010. It helped reduce the costs with LPG import and export by over 20%. The LPG business has been continuously expanding in Romania. In 2015, Rompetrol sold 248,000 tons of LPG. One year later, sales rose to 275,000 tons. In Romania, Rompetrol is the leader in the automotive LPG market, according to its own estimates, with a network of 220 power points. Rompetrol Gas operates three LPG bottling stations in Navodari, Arad and Bacau, with a total bottling capacity of 60,000 tons per year. editor@romania-insider.com