Market Trends of Romania Oil and Gas Downstream Industry
This section covers the major market trends shaping the Romania Oil & Gas Downstream Market according to our research experts:
Petrochemical Sector is Expected to Dominate the Market
- Romania's government is planning to expand its petrochemical industry in the future. This growth can be attributed to the growing population in the country and an improvement in the living standards of the country. Although renewable energy sources are gaining popularity around the country, petroleum fuel remains a major energy source.
- This trend is expected to continue for the next few decades and benefit all the sectors of the petroleum industry. In 2018, Rompetrol Raffinate and OMV Petrom announced that they may continue investing in the downstream sector.
- In 2018, Rompetrol Rafinare, the only company in Romania operating petrochemical facilities, announced the restart of the high-density polyethylene (HDPE) plant, on the platform of Petromidia refinery.
- Furthermore, by the end of 2018, OMV Petrom announced that it explored the possibility to develop petrochemical activities at Petrobrazi refinery, by building a petrochemical plant, according to the strategy of Austria's OMV for the period 2018-2025.
- Thus, such developments and the expansion projects in the country are expected to drive the market studied, during the forecast period.
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Increasing Investment and Upgradation of Downstream Industry to Drive the Market
- As of 2018, Romania ranks 11th in the world hierarchy of regional oil producers, with proven reserves of 200 million metric ton of oil, without taking into consideration the oil potential of the Romanian Black Sea plateau area under current exploration.
- The increasing production of gas and oil is expected to increase the refinery capacity of the country. For instance, in September 2019, KazMunaiGas International (KMGI) announced that it is planning to double the production capacity at the Petromidia Refinery. The investment for the expansion of refinery may be around USD 2 billion, and the capacity is expected to reach around 10 million metric tonnes per year.
- Furthermore, in April 2019, a new PolyFuel unit started at the Petrobrazi refinery. The PolyFuel unit of Petrobrazi refinery is the first of its kind, valorizing C4 and C5/C6 fractions into high-quality gasoline and middle distillates and increasing the overall production of these products.
- Therefore, the aforementioned developments are expected to drive the Romanian oil and gas downstream market, during the forecast period.
