The LPG market turnover to reach some €380 mln in 2008

This value is relatively low considering the potential of this market, especially in terms of auto gas, and players are planning to concentrate more on this segment in 2008, which will automatically lead to sharper competition. A significant share of the local LPG market, including auto and bottled gas, still belongs to smaller companies that could be subject to takeover or conclude partnerships with major players to survive, such as Butan Gas, owned by businessman Iosif Constantin Dragan. According to specialists, the auto gas market will shortly become the engine for the development of this market, as the bottled gas market is undermined by the expansion of the natural gas distribution system.

The local LPG market suffered major changes in 2007, with the Dutch Shell Group selling its 55.63 percent share package in Shell Gas Romania and 60 percent share in Transgas Services to Petrom for some €50 mln.

Negotiations between the largest international LPG distributor, Dutch SHV, and Crimbo Gas, domestic auto gas market leader, are coming to an end. According to internal LPG market sources, SHV will acquire the two companies, Crimbo Gas 2000 and Crimbo Gas International from Cristi Borcea, Executive Director of the Dinamo football club, with the transaction due to be perfected in early 2008. The year 2007 also brought a new player onto the internal LPG market, namely the Austrian Grizzly, which currently distributes LPG through rented Rafo gas stations.

Petrom plans to hold onto the management of the Shell Gas LPG distribution company in 2008, but will change the company’s name to Petrom GPL, according to Tamas Mayer, member of Petrom’s Board of Directors, responsible for marketing activities.

Petrom’s main competitors on this market are Crimbo Gas, Butan Gas, and Rompetrol.