EUR 50 million for oil storage - Energy Ministry signs MoU with Pancevo-based Transnafta and Germany's Oiltanking

The MoU concerns the establishment of joint venture of the Transnafta public company from Pancevo and the Oiltanking company from Germany.

This will make it possible for Serbia to fulfill its obligations regarding the formation of mandatory reserves of oil and petroleum products by 2023, which are stipulated by the Energy Law, and it will give Serbia energy stability and security, especially in energy crisis, Mihajlovic told a press conference in the Serbian government.

- That is our obligation and we intend to fulfill it by 1 January 2023 - Mihajlovic pointed out.

As it was told at aforementioned conference, by then Serbia needs to form mandatory reserves of oil and petrolum products as big as the quantity it averagely imports in 90 days, that is, the reserves big enough to cover 61 days of average daily consumption of these fuels.

Mihajlovic noted that the current capacity of Serbia's oil storage facilities was at 716,000 cubic meters, adding that it was necessary to build additional 250,000 cubic meters of storage space.

The MoU signing ceremony in the Serbian government was also attended by German Ambassador to Serbia Heinz Wilhelm.