Serbia Signs Pact on Oil Storage Project with Germany's Oiltanking

Serbian energy minister Zorana Mihajlovic signed on Thursday a memorandum of understanding (MoU) with German company Oiltanking and local state-owned oil storage operator Transnafta on a 50 million euro ($68.5 million) project for the construction of oil and petroleum product storage facilities, the government in Belgrade said.

The MoU refers to plans for a strategic partnership for the construction and management of the storage facilities for compulsory stockpiles of oil and petroleum products in Serbia, the government said in a statement issued after Mihajlovic co-signed the document alongside representatives of the two companies in Belgrade.

The document also cover plans for the establishment of a joint company.

The project will allow Serbia to fulfill obligations stemming from local energy regulations on the establishment of compulsory reserves of oil and petroleum products.

Local regulations require the build-up by January 1, 2023, of contingency state oil and petroleum product reserves to last 61 days.

Serbia currently has storage facilities for 716,000 cubic meters (cu m) of oil, Mihajlovic said, adding that an additional storage space of approximately 250,000 cu m is needed.

Oiltanking is one of the world’s leading independent storage partners for oils, chemicals, gases and dry bulk.

Source: SeeNews