Gas hike to affect Romania chem, fert producers

04 February 2008 11:56  [Source: ICIS news]

BUCHAREST (ICIS news)--Most Romanian chemical companies will be affected by the latest increase of natural gas prices, company representatives said on Monday.

Local energy price regulator ANRE decided to increase gas prices by 8.5% on average from 1 February on the grounds that Romania was now facing higher costs for imported gas.

Romania, which imports some 40% of its gas requirements, is paying $360-365 (€243-247) per 1,000 cubic metres for its gas, compared with $310 (€210) in December.

Producers said the hike will seriously affect mainly the business of fertiliser plants, whose proportion of cost of natural gas makes up 75% of the total finished product.

"Our company, for example, will register a decrease in 2008 turnover by at least €22m," Interagro director Ioan Nicolae told ICIS news.

InterAgro owns fertilizer manufacturers Turnu, Viromet Victoria and Sofert and through its subsidiary Donau Chem acquired Nitrofertilizer SA.

Representatives of other chemical companies, such as Azomures and Doljchim, also said the gas price hike will affect their sales, both for the export or for the local market.

($1 = €0.68)

By: Marian Chiriac
+44 20 8652 3214

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