Kazakhstan based KazMunayGas International, owner of Romania’s largest oil refinery Petromidia, and Romanian state-owned S.A.P.E., which manages country’s stakes in energy related companies, signed an agreement to launch the Kazakh-Romanian Energy Investment Fund. This step came after a Memorandum of Understanding for establishment, organisation and operation of the Fund was signed in February 2013.
The Fund is estimated to facilitate over $1 billion worth of investments during the next 7 years. KazMunayGas will hold the majority share of 80% and has already agreed on an initial contribution of $150 million.
There are two major projects in the Funds crosshairs:
Construction of a gas fired cogeneration unit in Petromidia with an installed output of 73 MW for electricity and 136 MW for heat. Heat is to be supplied to the municipality of Navodari, while the produced electricity will be partly utilised by the refinery and partly dispatched to the national grid. Estimated investment of $130 million is foreseen.
Expansion of the gas station network by an addition of around 80 new locations. Estimated investment of $100 million is foreseen.
Source: Business Review