Butan Gas Romania, the local branch of international group Butan Gas, is planning to enter the LPG market in former Yugoslavia this year, after having started exports to Bulgaria in 2003.
"Butan Gas is mulling a quick entry on the LPG segment in former Yugoslavia," Butan Gas Romania general manager Florin Preda told Ziarul Financiar. Butan Gas aims to expand its own terminal in Midia-Navodari, to achieve a superior export capacity, which will enable it to tackle the mentioned area.
Butan Gas Group, which operates in nine European countries, was established in 1948 by Iosif Constantin Dragan, the group's chairman and owner. Dragan is considered to be the wealthiest Romanian, with his personal fortune estimated at 800-850 million dollars.
On the Romanian market, Butan Gas (run from Milan by Iosif Constantin Dragan), operates through three entities: Butan Gas Romania, Butan Gas International and Mari Gaz (the company that operates the only maritime LPG terminal in Romania, located in Midia-Navodari). "Given the increasing demand for clean energy - LPG, we have a project that will see us expand our storing capacities in about two years, so that the ships entering the terminal will be bigger," said Florin Preda.
According to the Butan Gas Romania general manager, investments will revolve around 4 million euros.
The Midia-Navodari terminal has been operating since 2002, following an investment worth $12 million. Last year, 44,000 tonnes of LPG entered Romania through the Midia-Navodari terminal, coming from Turkey, Greece and the Ukraine. "Out of this quantity, 9,800 tonnes were exported to Bulgaria, with the rest imported by Butan Gas. The terminal also operates for third parties, so that some 8,600 tonnes were distributed to other companies in 2003," company officials said.
Butan Gas Romania last year posted one million euros in net profit, and turnover worth 28 million euros, up 40 percent from the previous year, company representatives say. Turnover is budgeted to go up 15% in 2004 from last year.
Butan Gas Romania is the third-largest player on the market, of which it holds 17%, whereas SNP (National Oil Company) Petrom and Shell Gas Romania each account for a third of the market.
adrian.mirsanu@zf.ro
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