The Kazakh-Romanian Energy Investment Fund (FIEKR) begins the construction of the cogeneration plant on the Petromidia platform, an investment of about USD 148 mln.

Established in October 2018, FIEKR is owned by KMG International (the owner of Petromidia, Romania's biggest refinery) and the Romanian State through the Energy Participation Management Company - SAPE. The Fund was a way for KMG International to settle a debt to the Romanian state (which received a 20% stake for free), but the investments are predominantly designed in line with and supportive for the development of the KMG group.

Minister of energy Virgil Popescu suggested to KMG to develop a bitumen production facility on the platform of the Petromidia refinery, Economica.net reported. The investment might be financed out of FIEKR's funds, he suggested.

Regarding the new power plant on Petromidia industrial platform, its estimated deadline for commissioning is the end of July 2023. The new plant will generate approximately 80 MW of electricity - of which about 60-70 MW to cover the platform's electricity needs fully -, technological steam for Petromidia refinery, plus the necessary hot water for the heating system of Navodari city - up to 20 MWt.

The project will generate about USD 11 mln in taxes paid to the state budget each year.

The plant will allow a significant reduction in the price of electricity delivered to the Petromidia platform - by eliminating part of the regulatory tariffs (e.g. transmission and distribution tariffs) and the price of thermal energy delivered to the city of Navodari.

andrei@romania-insider.com

(Photo source: Facebook/Rompetrol-KMG International)