Minister of energy signs memorandum on oil storage

BELGRADE - Serbia's Minister of Energy Zorana Mihajlovic signed on Thursday a memorandum of understanding regarding the construction of storage facilities needed to hold the obligatory reserves of oil and petroleum products worth EUR 50 million.

The memorandum refers to the creation of a joint venture between the government owned Transnafta from Pancevo and Oiltanking from Germany.

It will allow Serbia to meet its obligations stemming from the energy sector law by 2023. The obligations concern the creation of obligatory reserves of oil and petroleum products, which will provide Serbia with energy stability and security, especially during energy crises, Mihajlovic told a news conference.

"It is our obligation and we intend to fulfil it by January 1, 2023," she stressed.

By that time, Serbia has to create a reserve of oil and petroleum products that could cover 90 days of average import, that is 61 days of average consumption, she explained.

Serbia can currently store 716,000 cubic metres of oil and requires another 250,000 cubic metres of storage space, she pointed out.

Oiltanking is one of the biggest companies in the construction and management of storage facilities for oil and petroleum products, she noted, adding that Serbia and Germany had so far worked well together on joint energy projects.

German Ambassador to Serbia Heinz Wilhelm was present at the signing.

Photo Tanjug/D. Peternek