Helleniq Energy is looking to expand into one of south-eastern Europe’s largest fuel markets, Romania, with its 20 million consumers, either by acquiring an existing company or by investing from scratch in facilities, petrol stations and a distribution network.
At a time when the wider region is facing a crisis in refined products and declining refining capacity is becoming increasingly apparent, the Greek group is discussing a more ambitious move into the core of its business after announcing plans to expand its presence in neighbouring Romania through renewable energy investments: a significant strengthening of its position in south-eastern Europe’s oil products market.
Speaking in Bucharest on the sidelines of an event marking the launch of its subsidiary Helleniq Energy Renewables Romania, the group’s chief executive, Andreas Shiamishis, revealed that it was considering entering the Romanian fuel market. Given its size, geographical position and access to the Black Sea, the market is considered one of the largest in the wider region. He made clear once again that the region’s shortfall in refined products creates significant investment opportunities.
“We are looking at a possible expansion into petroleum products. That could mean either acquiring an existing operation or starting from scratch, with facilities, petrol stations and a distribution network,” Mr Shiamishis said, stressing that discussions were still at an early stage and that there was no specific investment plan to announce.
Building a position in Romania, not trading
The same applies to the question of how much a potential investment might be worth: that will depend on the business model ultimately chosen. The company, however, has already taken the first steps towards its next move.
It has been selling petroleum products in Romania for some time, establishing initial commercial relationships in the local market. But, as the Greek chief executive made clear, the group’s strategy is not limited to such transactions.
“Some companies are involved in marketing and trading; others build positions in the market and relationships. We are more in the latter camp,” Mr Shiamishis said, referring to investment in assets, distribution networks and customer relationships.
Infrastructure and players in Romania’s market
Asked who controls Romania’s fuel market, the answer is OMV Petrom, a subsidiary of Austria’s OMV group, and Russia’s Lukoil group. Lukoil’s international portfolio, worth more than $20 billion and focused on south-eastern Europe, has been in the process of being sold for almost a year amid US sanctions and pressure from European authorities.
Mr Shiamishis revealed that Petrom had been on the radar of what was then Hellenic Petroleum 25 years ago, long before it was acquired by Austria’s OMV. Lukoil, meanwhile, has a refinery in Romania (Petrotel), a network of 300 petrol stations and an 80% stake in the offshore Trident block in the Black Sea.
The Vardax pipeline and Serbia
Asked whether entry into the Romanian market could be achieved by extending the Thessaloniki–Skopje oil pipeline, known as Vardax, which is 80% controlled by Helleniq Energy, Mr Shiamishis ruled this out because of the distances involved and the technical and financial difficulties.
In any case, the preferred option for the Romanian market is to assess an independent commercial presence, through facilities and distribution networks, rather than link it to the existing pipeline. The pipeline is being considered for extension only from North Macedonia to Serbia, to facilitate the group’s access to that market.
€3bn-€5bn investment across the three refineries
Looking at the bigger picture, it is clear that alongside the green transition, investment in hydrocarbons — specifically, in boosting productivity at the three refineries — will increase sharply in the coming years.
Mr Shiamishis had flagged this in September, when he outlined to journalists on the sidelines of the Thessaloniki International Fair a €3bn-€5bn investment plan for Thessaloniki, Elefsina and Aspropyrgos, spanning the next decade and due to be announced in January 2027.
Although this is a broader portfolio of potential projects requiring permits, technical development and final investment decisions, the plan envisages that the share of the group’s production destined for export could reach as much as 70% by 2032.