Market Trends of Romania Oil and Gas Industry
This section covers the major market trends shaping the Romania Oil & Gas Market according to our research experts:
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 tons 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 they are planning to double the production capacity at the Petromidia Refinery. The investment for the expansion of refinery will be around USD 2 billion and the capacity is expected to be reach around 10 million 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, increasing the overall production of these products.
- Therefore, the aforementioned developments are expected to drive the Romania oil and gas downstream market during the forecast period.
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Increasing Natural Gas Demand is Expected to Drive the Market
- Romania is relatively self-sufficient in natural gas, with imports averaging around 10-15% over the past few years and the Black Sea resources have the potential to turn the country into a net exporter.
- The annual consumption has reached 10.9 megatonnes in 2018. Therefore, while domestic production accounted for 33% of demand in 2018.
- Romania has a century of experience in natural gas production. According to BP, in 2018, 9.5 billion cubic metres (bcm) of gas were brought to surface locally and a remaining quantity of 1.4 bcm was imported to cover domestic consumption.
