The Kazakh-Romanian Energy Investment Fund raised a EUR 83m syndicated credit facility or the financing of a new Cogeneration Plant

The Kazakh-Romanian Energy Investment Fund (KREIF) has successfully closed a EUR 83m syndicated loan for financing the construction of a new cogeneration plant on the Petromidia Refinery platform. The financing banks are Banca Comerciala Romana (Romanian Commercial Bank) as mandated lead arranger, bookrunner, documentation, facility and security agent, together with Raiffeisen Bank Romania, Raiffeisen Bank International, Alpha Bank Romania, OTP Bank Romania, OTP Bank Plc and Garanti Bank Romania as mandated lead arrangers. 

The brownfield type investment comprises the assets of Uzina Termoelectrica Midia (Midia Thermal Power Plant) and its staff for operating the existing equipment and of the new power plant. The estimated deadline for putting into operation the cogeneration plant is due to July 2023.

The recently accessed by KREIF credit represents over 65% of the amount, necessary for implementing the investment project, estimated at a total value of USD 148m, the financing benefiting of a grace period until January 2024 – past 6 months after commissioning of the plant. The reimbursement period is 5 years with a maturity term at the end of January 2029. 

CMS Romania has acted as the legal consultant for the banking syndicate.

Through Rompetrol Energy, the Investment Fund has selected the Calik Energy company as general contractor of the project (Engineering, Procurement and Construction). Ithas started the execution of the contract in June last year by initiating designing activities, as well as by executing a series of works, such as demolition in June of the 150 meters height chimney at Midia Thermal Power Plant and of the old turbine house, decommissioned over 10 years ago, preparation of the land plot before construction, construction of foundations for new turbines, which are currently in the process of manufacturing at the producer. 

The new facility for combined production of electrical and thermal power will be mainly fueled by natural gas and will partially use (up to 25%) the fuel gas obtained from refining technological processes. The efficiency level of the plant will be very high, reaching 92%.

According to its technical configuration (two highly efficient Siemens SGT-750 turbines and two heat recovery boilers), the new plant will generate around 80 MW of electrical energy, out of which the largest amount will be used for overall covering of the necessary power for Petromidia platform, as well as technological steam for the Refinery up to 180 tons / hour and the necessary hot water for the heating system of Navodari city – up to 20 MWt / hour. The project will annually generate about 11 ml. USD of taxes paid to the state budget. 

At the same time, the plant will ensure stability in supplying the necessary power for the Petromidia platform and also the thermal energy for Navodari city. Moreover, it will facilitate an annual reduction of 290 kt CO2 emissions for electrical energy production and savings of 1.2 TWh of the used primary energetic resources. 

Established in 2018, the Kazakh-Romanian Energy Investment Fund is owned by KMG International and Romanian State through SAPE (Societatea de Administrare a Participațiilor în Energie / Company for Administrating of Participation Shares in Energy), its main and strategic objective being the development of energy projects in Romania. At the same time, both shareholders – KMGI and the Romanian State are present in the shareholders structure of Midia Thermal Power Plant and Rompetrol Rafinare – the operator of the refineries Petromidia Năvodari and Vega Ploiești, as well as of the sole producer of polymers in Romania. 

The majority stake of the Rompetrol Energy company is owned by the Kazakh-Romanian Energy Investment Fund together with Rominserv and Midia Thermal Power Plant.