Moldova to create 90-day reserve of petroleum products by 2030

CHISINAU. Nov 26 (Interfax) - Moldova will legally adopt the European directive on reserves of petroleum products and plans to introduce an obligation on maintaining reserves of such products for 90 days of average daily net imports by 2030, the Moldovan Energy Ministry said.

Secretary of State Constantin Borosan presented a corresponding bill at a meeting of the International Energy Agency (IEA) in Paris which discussed modeling the regional oil crisis.

Moldova is essentially fully dependent on imports of petroleum products, the ministry said. "Nearly all diesel fuel and gasoline is imported through oil companies that are subsidiaries of Romanian refineries, as well as via seaports and rivers from Romania," it said.

Petroleum products remain the dominant source of energy in Moldova, with annual consumption at 1.13 million tonnes of oil equivalent. Petroleum products account for the largest share of final gross energy consumption at 43%, followed by natural gas at 22%, biofuels and firewood at 21% and electricity at 12%.

Moldova is vulnerable to possible disruptions in the supply of petroleum products, given that commercial reserves usually ensure 20 days of domestic consumption, Borosan said. In May 2022, due to logistical problems amid the conflict in Ukraine, commercial reserves of diesel and gasoline were sufficient for only three days of current consumption.

According to the bill, management of petroleum product reserves will be carried out under a hybrid model, with 50% of storage obligations assigned to a state institution under the Energy Ministry and the remaining 50% allocated to importers. Up to 60% of petroleum reserves will be stored within Moldova, with the rest kept in the exporting country.

It was previously reported that Moldovan authorities plan to begin forming emergency reserves of petroleum products starting in 2026 in the amount of at least 200,000 tonnes, sufficient for 61 days of consumption.

According to the Moldovan National Agency for Energy Regulation (ANRE), Moldova increased petroleum product imports 5.5% to 907,900 tonnes in 2023. This included 184,200 tonnes of gasoline, up 8.7%, 665,600 tonnes of diesel fuel, up 4.6%, and 58,000 tonnes of liquefied gas, up 4.7%. Romania remains the main supplier of petroleum products to Moldova, accounting for 96.8% of gasoline, 68% of diesel fuel, and 54.2% of liquefied gas imports. Moldova also imports petroleum products from Kazakhstan, Russia, Bulgaria, Italy and Israel.