Moldova to create 90-day stocks of petroleum products

CHISINAU. March 10 (Interfax) - The Moldovan authorities intend to create strategic stocks of petroleum products equivalent to 90 days of imports amid a global surge in hydrocarbon prices due to the crisis in the Middle East, Moldova's Energy Ministry said in a statement, referring to a bill published for public discussion.

"The 90-day stock standard is in line with the recommendations of the International Energy Agency and was introduced after the largest global oil crises of 1973 and 1979 [...] According to the bill, these stocks will be provided in equal proportions by the state and companies that import petroleum products, 50% per side. At least 60% of the total stocks must be physically stored in the country, while the rest may be stored abroad," the statement said.

The types of fuel covered by the bill include diesel fuel, gasoline and jet fuel.

The document also envisions mechanisms for using backup stocks, which will be released into the market only if there is a supply crisis, when the authorities will declare a state of emergency in the petroleum product sector.

The current commodity stocks of petroleum products in Moldova cover 21 to 30 days of domestic consumption.

As reported earlier, the Moldovan government on March 4 declared a 60-day high alert in the energy sector as a preventive measure to protect the country's energy security, including restrictions on petroleum product exports from Moldova and measures to prioritize domestic electricity consumption during peak hours to meet consumer needs and protect the stability of the electricity system.

The Moldovan authorities reached the decision after analyzing the risks to the country's energy supply amid the crisis in the Middle East.

The Moldovan Foreign Ministry said in a statement earlier on Tuesday that Chisinau is considering importing petroleum products from Azerbaijan and pursuing joint projects. On Friday, Moldovan Deputy Prime Minister and Foreign Minister Mihai Popsoi paid an official visit to Azerbaijan and met with Azerbaijani First Deputy Economy Minister Elnur Aliyev and SOCAR Vice President Elshad Nasirov.

"The sides analyzed options for cooperation in diversifying energy sources, deliveries of petroleum products and developing distribution infrastructure, as well as expanding Azerbaijani operators' presence in the Moldovan market," the statement said.