German petroleum and gas company Wintershall will enter the Romanian gas distribution market in the coming weeks through a joint venture named Wirom Gas, company sources say.
Wintershall is now expanding its business on the local market, from the production and trade in imported natural gas from Russia, to the establishment of local distributors in the southern part of the country. The company quit the race for Distrigaz Nord at the last minute citing strategic reasons. Distrigaz Nord will be acquired by another German giant, Ruhrgas.
“Wirom Gas will announce the establishment of its first natural gas distributor in Turnu Magurele next week, following a 1.5 million euro investment,” the same sources told Ziarul Financiar.
Wirom Gas, one of the leading importers of gas from Russia, recently increased its share capital by around one million euros in order to establish gas distributors in Turnu Magurele, Alexandria, Oltenita and Giurgiu.
Imports from Russia’s Gazprom account for approximately 30% of demand for natural gas in Romania, while domestic output is decreasing each year as the deposits exploited by Romgaz and Petrom dry up. Current private natural gas distributors include Congaz Constanta, a business in which Ruhrgas owns nearly 29%, and Gaz Vest Arad, in which SIF Banat-Crisana is one of the main shareholders.
Estimates show that local private distributors account for 10%-15% of total gas distribution in Romania. The remaining market share is split between Distrigaz Sud, which will soon be acquired by Gaz de France, and Distrigaz Nord, soon to be acquired by Ruhrgas.
Until this year, Wirom Gas operated only as a trader in Russian natural gas. It was recently reorganised following a change in shareholders and management. Harald Kraft, who was Wirom Gas’ chief executive for the last seven years, will become chief executive at the Medias branch of Wintershall AG, which manages the gas deposits near Sighisoara.
The new Wirom Gas managers are Ioan Frasin (from the Romanian side) and Christian Horsch (from the German side). Before joining Wirom, Horsch co-ordinated the local offices of the German petrochemical group BASF, which is the 100% owner of Wintershall. Horsch was chief executive of Wirom Gas in the early nineties.
Transgaz Medias natural gas carrier this year sold its 40% stake in Wirom Gas to Distrigaz Sud for 40 million ROL (the sale was made at the share capital value, which was 100 million ROL). Current Wirom Gas shareholders are: Transgaz Medias (9.97%), Distrigaz Sud (40%), Banca Romexterra (0.03%), WIEH Berlin – owned equally by Wintershall and Gazprom – (49.97%), Zarubezhgaz – Gazprom’s German branch – (0.01%), and Wintershall Erdgas Beteiligungs GmbH – Wintershall subsidiary – (0.02%).
adrian.mirsanu@zf.ro