Romania is taking steps to reinforce its domestic chemical industry by introducing a new package of tax incentives aimed at companies that use natural gas as a feedstock, as policymakers seek to expand higher-value industrial production tied to the country’s rising gas output.
The Senate has approved draft legislation that introduces a range of financial benefits for investors in gas-based chemical manufacturing. The proposal, which has received cross-party support, will now move to the Chamber of Deputies for final approval.
Under the proposed framework, eligible companies would receive a five-year exemption from corporate profit tax starting from the moment of their initial investment. Profits that are reinvested into approved industrial activities would also remain exempt from taxation during the same period. The bill additionally introduces accelerated depreciation rules, intended to encourage faster investment in industrial facilities and production equipment.
Companies operating in the sector would also benefit from exemptions on local property taxes, including land and building taxes, for up to five years, subject to approval by local authorities. Additional incentives include waivers on fees related to changes in land designation and the removal of land from agricultural use for industrial development.
Supporters of the initiative argue that Romania should prioritize domestic processing of natural gas rather than focusing mainly on raw exports. According to lawmakers backing the proposal, expanding downstream industries would strengthen energy security, improve industrial competitiveness, and generate additional domestic value creation.
The legislative initiative comes ahead of expected production from the Neptun Deep offshore project in the Black Sea, which is projected to significantly increase Romania’s natural gas output from 2027 onwards. Romanian authorities have recently intensified efforts to support industries linked to gas processing, including fertilizers, petrochemicals, and broader industrial manufacturing.
The strategy also aligns with plans by Romgaz to acquire fertilizer producer Azomureș, a move supported by the government as part of a broader effort to revive Romania’s chemical sector using domestic energy resources.
