KazMunayGas resumes polymer production in Romania

KMG International, a subsidiary of Kazakhstan’s national oil and gas company KazMunayGas (KMG), has resumed operations at a petrochemical unit within the Petromidia refinery in Romania, the company announced.

Amid rising demand for petrochemical products in the European market, KMG has launched a low-density polyethylene (LDPE) production plant. The company plans to reintegrate the LDPE facility with the petrochemical complex at the Petromidia refinery, aiming to solidify its position as Romania’s sole national polymer producer. This move is expected to bolster KMG International’s production and financial performance while reestablishing its dominance in the regional polymer market.

The LDPE plant has an annual production capacity of 75,000 tons. Starting in May, it will manufacture thermoset, agricultural and thin packaging films, and heavy-duty plastic packaging. KMG International projects its total polymer output to exceed 145,000 tons by 2025.

Romania remains KMG’s most significant foreign market. In 2023, the company reportedly paid more taxes in Romania than in Kazakhstan. KMG holds a 54.63% stake in two major Romanian refineries — Vega and Petromidia — while the Romanian government owns the remaining shares. The Vega refinery has an annual capacity of 0.5 million tons, while Petromidia’s capacity reaches 6 million tons. KMG also operates an oil terminal in Constanta on the Black Sea, which serves as the primary hub for oil deliveries to its Romanian refineries.

In 2023, Petromidia achieved an 84% light oil product yield, surpassing the 77%, 72% and 67% yields reported at KMG’s refineries in Shymkent, Pavlodar and Atyrau, respectively. Refined products, including gasoline and diesel that meet European standards, are distributed to KMG’s network of filling stations in Romania, Bulgaria, Moldova and Georgia. KMG also used to supply fuel to Ukraine.

Notably, KMG completed the modernization of its Romanian refineries before upgrading its facilities in Kazakhstan. Gas stations in KMG’s Romanian network met European standards — including upgraded restrooms, coffee services and fast-food options — well before their counterparts in Kazakhstan, which were later sold.

In 2024, media reports indicated that KMG planned to sell KMG International by the end of the year, as part of Kazakhstan’s nationwide privatization plan for 2021-2025.

In late April 2025, KMG announced it had completed renovations at the Caspi Bitum plant in Aktau, marking the production of its first batch of bitumen. The company aims to produce 1.5 million tons of bitumen annually at the facility.