Montenegro may store its mandatory oil reserves abroad—in Italy, Croatia, Slovenia, or Greece—if an agreement cannot be reached to keep them in the Jugopetrol reservoirs in Bar. The country is seeking formal cooperation and approval with these neighboring states.
State-owned oil storage facilities at the Bar Terminal are the preferred option due to their location, capacity, and technical capabilities, but they will not be available before the last quarter of next year.
At the end of last year, the Montenegrin government adopted a law on mandatory storage of oil derivatives to close the energy chapter. Countries must maintain reserves sufficient for 90 days of supply in case of energy shortages. Montenegro’s plan was to hold most reserves physically within the country.
Drasko Striković, Secretary General of the Montenegrin Oil Companies Association, explained that within the EU, it is common to use a “ticketing” model, where reserves are stored in another member state. Montenegro could similarly lease storage space in countries like Croatia or Italy, ensuring access to its allocated quantities at all times under such agreements.
Storing reserves abroad initially costs less than purchasing and maintaining large physical stockpiles, which require ongoing renewal due to seasonal fuel characteristics.
The state-owned reservoirs at Bar Port are not yet operational for physical storage, although their procurement was planned for December. The Bar Terminal, owned by the state company Montenegro Bonus and intended for reserve storage, will not be technically ready before the end of next year.
The government issued a second tender in early July to adapt and renovate the storage facilities, which have been unused for years, with the report expected soon.
Once operational, Montenegro will be able to store a significant portion of its physical reserves domestically while leasing additional capacity from other operators or neighboring countries as needed. Currently, only one operator in Montenegro has functional storage facilities at Bar Port.
The Ministry of Energy and the Administration for Contracted Reserves have the legal right to inspect storage facilities twice a year to verify compliance.
In case of supply disruptions at the global level, Montenegro would have priority access to its stored quantities under these agreements.
Negotiations with Jugopetrol are planned following government approval. If Jugopetrol cannot provide available capacity or competitive pricing, Montenegro will store its mandatory reserves abroad until domestic state-owned storage becomes available.
