KMG International plans to transform Midia Marine Terminal in major Black Sea energy hub

Shareholders of Midia Marine Terminal (MMT), part of KazMunaiGaz International Group announced plans to transform the terminal in the Midia port into the most important energy hub at the Black Sea, thanks to a portfolio of investments set to be launched in 2018 for the development and expansion of operation and interconnection capabilities.

MMT general manager Ioan Taus, said at a press conference held in Midia Port on the occasion of the 10th anniversary of the only cryogenic terminal at the Black Sea that a package consisting of eight projects is expected next year. Eight projects to develop the company’s operating capacity. The packages will offer the possibility to provide services to third parties, which will turn the terminal into the most important energy hub at the Black Sea through which the resources exploited on the continental sea plate can be transported, as well as those that will be transported, via the Chinese initiative titled The New Silk Road.

“We are currently operating as a fiscal warehouse for petroleum products only for Petromidia, but we also have the operational capacity to provide services to third-party customers. Over the past 10 years we have operated over 35 million tons of crude oil and finished products. Annually, 550 ships annually transit Midia Port through the three dams, and in the offshore terminal, located 4-miles offshore, 350 more ships connect, and annually and more than 5 million tons of products are transited. The terminal has a total operating capacity of 16 million tons per year, and we use only 5 million tons per year for the transit of our goods, which gives us the availability to run commercial contracts with others beneficiaries,” Taus explained.

Speaking on the topic, KMG International first deputy Catalin Dumitru said expansion plans to expand operations in Romania and those abroad, including that of activities of the Midia Marine Terminal are connected to the transfer of the majority share package towards the new Chinese shareholder.

“All these projects regard the development for receiving a bigger quantity of oil and the increase of the export capacity and these plans are connected, obviously, to the investment support we will receive thanks to the fact that 51 percent of the shares of the KMG International Group will be transferred to the portfolio of China Energy Financials&Company (CEFG). We estimate that all official diligence will be completed and all approvals for this operation will be obtained by the end of the summer,” Dumitru said.