Petrochemicals and Oil Refining
The Petromidia Refinery and the KMGI Group: Modernisation and Growth in a Volatile Market
Against a backdrop of volatile oil markets, shifting price conditions, and rising demands for refining efficiency, the Petromidia refinery in Romania and its owner, the KMG International (KMGI) Group, stand as an example of adaptation and strategic development in Europe's highly competitive downstream market.
Production: Stability and Scale
Founded in 1979, the Petromidia refinery is Romania’s largest. It forms the core of the KMGI production complex, which also includes the Petrochemicals complex and the Vega refinery in Ploiesti.
Petromidia produces gasoline, jet fuel, diesel, LPG, propylene, bitumen feedstock, petroleum coke, and sulphur. Its principal market is Romania, with additional exports of petroleum products to Moldova, Bulgaria, and Georgia, where KMGI also has retail operations.
The Vega refinery specialises in processing alternative feedstocks (naphtha, heavy hydrocarbons, vacuum residue) and produces a broad range of products, including eco-friendly solvents, bitumen, n-hexane, white spirit, and boiler fuel. Its main export markets are Turkey, Moldova, Bulgaria, Hungary, and India.
The Petrochemicals complex is Romania's sole producer of polymers and is integrated with the Petromidia refinery, which supplies propylene as feedstock. Imported ethylene is also used as feedstock. The complex produces polypropylene (PP) and polyethylene (LDPE and HDPE), which are exported to markets in Bulgaria, Italy, Turkey, Serbia, and Slovakia.
While total feedstock throughput at Petromidia and Vega stood at around 4.9-5.4 mln tons per year in 2023-2024, in 2025 it rose to 6.282 mln tons. At the same time, the Petromidia refinery's production load remains consistently high at about 16.13 thsd. tons per day (run rate). The plant is improving its energy efficiency, having reduced its energy intensity index to around 92.5. A particular point of pride is the industry's highest white product yield at 87.07%.
In aggregate, KMG International's capacity accounts for around 54.3% of Romania's oil refining, while around 63% of its feedstock is Kazakhstani crude, underscoring the Group's strategic integration of the upstream and downstream assets of NC KazMunayGas JSC.
Market Diversification and Increased Value Added
Within the NC KazMunayGas JSC Group, KMGI's foreign assets play an important role by diversifying sales markets and increasing value added. Most of Petromidia's refinery output is sold directly to end consumers, the highest-margin channel. At the same time, annual sales growth at KMGI's retail companies continued (+14.18% year-on-year in 2025), driven mainly by wholesale (i.e., sales to fleet customers) and trading sales. The company systematically works to attract new customers and grow profits from non-fuel goods (up 7.2% in 2025 versus the prior year). The sales geography is constantly expanding: Romania, Bulgaria, Moldova, and Georgia. Retail and non-fuel sales are growing (their contribution to profit is approximately USD 69.8 mln). This model reduces dependence on market fluctuations and strengthens margin resilience.
KMG International is one of Romania’s largest employers (more than 5.5 thsd. jobs) and the country’s largest taxpayer. Petromidia and KMG International are therefore not only industrial assets but also strategically important socio-economic ones, both for the KMG Group and for the Romanian state.
Record Profit and Rising Efficiency
The year 2025 marked an all-time high in KMGI’s net profit, at USD 123 mln, alongside a 56% year-on-year rise in EBITDA, to USD 412 mln. This was made possible by a combination of factors:
- higher refining margins,
- growth in sales volumes of petroleum products,
- development of the non-fuel business,
- cost optimisation and improved operational efficiency.
It is worth noting that these results were achieved after a difficult 2024, when the figures were affected by Petromidia’s scheduled turnaround and the market saw continued high volatility in oil and petroleum product prices.
Improving Operational Efficiency and Production Resilience
KMG International consistently implements a programme of modernisation and technological development of its production assets: improving refinery energy efficiency, developing the petrochemicals segment, and enhancing environmental performance. Projects are underway to increase refining depth, optimise processes, and produce high-margin products. Particular attention is paid to sustainable development and adherence to ESG principles.
Among the largest recently completed projects at the Petromidia site is the start-up of its own cogeneration power plant, which was built in 2025. The project has not only enhanced the refinery's energy independence but also enabled a stable, more efficient energy supply to production processes through simultaneous electricity and steam generation. This, in turn, directly reduces operating costs and improves overall refining profitability. The project was implemented through the Kazakh-Romanian Energy Investment Fund, underscoring the strategic role of international partnerships and reinforcing Kazakhstan's position in the European energy sector.
In the first four months of 2026, the new cogeneration plant generated approximately 180 thsd. MWh of electricity and 310 thsd. tons of technological steam, fully covering the refinery's needs. The remaining electricity was sold into Romania's National Power System, which helped maintain the regional energy supply balance and generated additional revenue of USD 6 mln.
The plant can also operate in island mode in the event of grid disruptions, ensuring the refining complex's continuity of operation.
The plant’s key equipment consists of Siemens SGT-750 gas turbines, used for the first time in Romania’s power sector. Each turbine generates approximately 39 MW of electricity, using a mix of natural gas and refinery off-gas.
The flagship project of Petromidia’s Petrochemicals complex is the launch of a new type of polymer, polypropylene copolymer, made possible by an equipment upgrade at the existing polypropylene unit.
During the first production trials, conducted in February 2026, the unit produced around 187 tons of copolymer, including the licensed grade J730 and a newly developed RRCP25 grade. The trials confirmed the unit’s stable operation and the conformity of the resulting product with end-customer requirements.
The maximum unit throughput for copolymer production is 140-144 tons per day. The plant is thereby expanding its petrochemicals product line, with the increase coming from higher-value-added products. Following the completion of the turnaround at the petrochemical complex and the unit's restart, the enterprise has moved to regular copolymer production, enabling it to enter higher-margin segments of the polymer products market.
At the Vega refinery, production has been launched of a new type of hexane with a minimum purity of 60% (the previously produced grade had 50%), a high-value-added solvent for the food and chemical industries. The project was carried out through the modernisation of the N-Hexane unit. N-hexane is used in the refining of vegetable oils and in the production of adhesives, rubber, and paint products. It is already supplied to markets in Romania, Europe, and Asia.
The plant, as the sole producer of hexane in Romania and the largest in Europe, can produce up to 260 tons of hexane per day.
In retail, the KMG International Group, under the Rompetrol brand, manages a network of more than 1,400 stations in Romania, Bulgaria, Moldova, and Georgia, and continues to strengthen its position as one of the market leaders through large-scale modernisation of service infrastructure and the introduction of digital solutions. In 2026, the company completed the rollout of a new IT platform across more than 500 gas stations in Romania, integrating modern tools based on artificial intelligence, machine learning, and blockchain technologies to improve operational efficiency, enhance customer service, and develop loyalty programmes. Particular attention is paid to the development of the hei gastro concept, the expansion of in-station shop assortment, and the creation of modern service spaces for customers.
One strategic direction in Rompetrol's development has been the active promotion of projects in e-mobility and alternative energy. With European Union support, the company is implementing a large-scale programme to install ultra-fast charging stations for both passenger and heavy-duty transport on key transport corridors in Romania. The Rompetrol network now has dozens of charging points, and under new projects through 2027, it plans to launch additional stations of up to 350 kW, including infrastructure for heavy-duty transport. The company is thus transforming traditional gas stations into full-fledged next-generation energy and service hubs.
As part of its network expansion in Romania, construction of new stations in strategically important regions of the country, including motorways and border-area routes, began in 2026 and is continuing. The new facilities are being built to modern environmental and infrastructure standards, including charging stations, rest areas, expanded gastro spaces, and services for heavy-duty transport.
A point worth noting separately is the presence of Kazakhstani products in the Rompetrol network. The company’s stations already carry goods of Kazakhstani manufacture (chocolate and confectionery), and the assortment is planned to expand further, strengthening trade and economic cooperation between Kazakhstan and Romania and raising the profile of Kazakhstani brands in the European market.
Strategic Plans and Outlook
The medium-term strategy developed at KMG International positions the company as a regional leader focused on creating additional value by maximising the potential of integrated energy assets in attractive regions and valuable segments of the value chain.
The Petromidia refinery, the Group's key production and energy asset, will remain at the centre of KMG International's future strategy, with the company planning to develop all its main business lines around the refinery. KMGI intends to continue raising production efficiency and expanding the product line, while simultaneously reinforcing synergies between refining, petrochemicals, trading, and the Rompetrol retail business. In retail, the company will continue to refresh its gas station network, develop its gastro and service concepts, and roll out digital and AI solutions to improve the customer experience.
In addition, KMG International, with the support of European grants, plans to gradually develop projects in alternative energy, e-mobility, and low-carbon fuels, while maintaining a focus on sustainable growth and on strengthening its position in the markets where it operates.
A Successful Example of Transformation
The Petromidia refinery and KMG International as a whole are today demonstrating a successful example of transforming the oil refining business amid global turbulence. The combination of a modernised production base, vertical integration, and a sound commercial strategy has allowed the Group to deliver record financial results.
In the coming years, the key drivers of growth will be deeper refining, petrochemical development, and further integration with Kazakhstan's upstream assets.
Against the backdrop of the energy transition and tightening environmental requirements, it is precisely such flexible, technologically advanced assets as Petromidia that will play a key role in ensuring the resilience of the country's oil and gas industry.