Romania's InterAgro to form JV with Gazprom

Date:05-29-2012


Diversified Romanian holding InterAgro, which owns several fertilizer plants in the country, plans to form a joint-venture company in the chemical industry with Gazprom Schweiz AG for processing Russian and Romanian natural gas, news agency Agerpres informed, quoting an InterAgro press release. The natural gas would be processed in InterAgro's facilities, but also in other plants in Romania. According to a separate report, Swiss grain and fertilizers trader Ameropa just took over Romania's largest fertilizers producer, Azomures, from Turkish investors. The natural gas supply is a critical element in the fertilizer industry as it accounts for the largest part of the production costs. The Romanian government has to take the first steps towards natural gas market liberalisation for non-residential users as soon as this year. InterAgro's fertilizers producers were subject to state subsidies broadly allowed to the chemical industry over the past couple of years, when the chemical companies were allowed to process 100% cheap natural gas. But such preferential regime is unlikely in the future, under the pressure of EU directives that Romania is already late in enforcing.