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We need to take advantage of low prices for oil to start its stockpiling

10 April 2020
We need to take advantage of low prices for oil to start its stockpiling

Formation of oil reserves is not only a matter of energy security, but also a matter of implementation of the Agreement on the Association

 

Low prices for oil on the market are an opportunity to start its stockpiling in Ukraine. DiXi Group President Olena Pavlenko told this during Kyiv Security Forum, “Ukrainska Enerhetyka” reports.

“Low prices for oil are a great opportunity to start its stockpiling. For Ukraine, it is not only a matter of energy security, but also a matter of implementation of the Agreement on the Association. There is an EU Directive that requires Ukraine to make oil reserves,” the expert noted.

According to her, a relevant draft law has been developed in Ukraine, but for 2-3 years, the government has not taken any steps for its approval.

“As for me, now, there is a great opportunity to raise the draft law and adopt it,” Pavlenko said.

As was informed, according to the Agreement on the Association with the EU, Ukraine is to create the maintained reserves of crude oil and petroleum products by 1 January 2023 in the equivalent of 90 days of net imports or 61 days of daily average consumption. The main contractor in the implementation of the reform on formation of strategic reserves of crude oil and petroleum products is the State Reserve.

The State Agency for Reserve of Ukraine presented the first version of the draft law on minimal reserves of crude oil and petroleum products as far back as in 2018. According to the actual capacity of the Ukrainian oil refinery plants, the structure of the minimal reserve of crude oil and petroleum products will consist of 30% of crude oil and 70% of petroleum products. An independent agency will be set up to manage the minimal reserves of crude oil and petroleum products (MROP), 70% of which will be owned by the state and 30% – by the market operators.


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