Refining and petrochemicals represent one of the main business units of KMG International, keeping the local industry at high standards. It owns two out of four refineries in Romania, the excellence centers Petromidia refinery (Navodari city) and Vega refinery (Ploiesti city) as well as the Petrochemicals division, the sole producer of polymers in Romania.
Petromidia processes mostly Urals type of crude oil, producing exclusively Euro 5 fuels and other very valuable niche products distributed by the Trading and Supply Chain to the Group subsidiaries and other traditional partners.
More than 1.4 billion USD were invested to develop the refining and petrochemicals units starting 2007, along with logistics infrastructure for crude oil supply and delivery of finished products in Romania and the Black Sea region.
These initiatives of assets modernization were undertaken and carried out in a local and international context marked by the financial crisis, the oil and gas sector being among the most affected.
Contribution to energy security
Petromidia and Vega refineries make up 44,6% of the local processing capacity and could fulfill 70% of the current internal demand for diesel and gasoline, since Petromidia has the highest yield of white products in the region (gasoline, diesel and jet fuel).
The diversity of supply sources represents a key element of energy security and the Group’s offshore marine terminal has a significant contribution to ensuring alternative supply routes with raw materials.
On top of direct access to crude oil supplies from Kazakhstan, Petromidia has the second largest reserve of oil and crude products in the regulated emergency stockpile.
Rompetrol Rafinare is the third largest contributor to the Romanian budget, with an annual contribution of nearly USD 1.2 billion to the local budget.
By continually investing in its two refineries, KMG International maintains its position as the biggest exporter of oil products and one of the biggest exporters from Romania.
We have managed to significantly improve our performance over the past years through constant and consistent investments aimed at increasing our refining capacity and operational results.
As a result of the complex modernization program of the Petromidia refinery and the increase of the processing capacity to more than 5 million tons/year ended in 2012, the Group registered a series of operational and financial records.
Results 9 months 2020
Rompetrol Rafinare recorded, in the first nine months of this year, declining financial results due to the influences generated by the new coronavirus, but also due to the unprecedented volatility in the oil market.
In the pandemic context, market demand contracted, generating major pressures on gross refining margins which decreased substantially compared to the indicators for similar periods in 2019 - 19.6 USD/t compared to 41.1 USD/t in Q3 2019, respectively 11 USD/t compared to 37.6 USD/t in the first 9 months of 2019.
At the level of the global business environment, refining margins felt major pressure at the beginning of the year, reaching minimum levels similar to those of 2008.
The total value of exports made between January and September by the Petromidia, Vega refineries and the Petrochemical Division of Rompetrol Rafinare amounted to approximately 468 million dollars.
Rompetrol Rafinare continued to be an important contributor to Romania's state budget, paying over 772 million dollars in the first 9 months of 2020.
Read more about the financial and operational results 9 months 2020.
Rompetrol Rafinare managed in 2019 to maintain a positive trend in terms of operational results, with record values for processed raw materials, fuel production and sales on the domestic market.