Questions

1. What is the national stockholding obligation for Belgium and to how much does it amount?

2. When will the strategic stocks be used?

3. Who is in charge of holding and managing the strategic stocks?

4. Where are the strategic stocks of Belgium located?

5. What does "APETRA" stand for?

6. How is APETRA funded?

7. How does APETRA manage the stocks?

8. How does APETRA buy stocks?

9. 90 days of compulsory oil stocks: is this sufficient? 

10. What happens if my company has an individual stockholding obligation but does not have sufficient operational stocks? Can my company turn to APETRA?

11. In which storage facilities can the strategic stocks be stored?

Answers

1. What is the national stockholding obligation for Belgium and to how much does it amount? - top -

As Member State of the European Union and of the International Energy Agency (IEA), Belgium has the obligation to hold strategic stocks corresponding to 90 days' internal consumption / net imports of petroleum products.

Belgium's IEA stockholding obligation in the previous years amounted to some 4,5 million tons crude oil equivalent. The national stockholding obligation of a member state is increased by the IEA, in order to take into account the so-called "unavailable tank bottoms “, which the IEA estimates at 10%.  

Belgium's EU stockholding obligation (fixed by means of product categories) amounts for the stockholding year 2011-2012 to:

• Cat.  1 (gasolines)    ca. 333.700 tons;
• Cat. 2 (heating gasoil, diesel fuel, kerosene, jet fuel) : 3,366,700 tons;
• Cat.  3 (residual fuels): ca. 82,000 tons.

2. When will the strategic stocks be used? - top -

The strategic stocks will be used in the event of a break in the supply of our country or any other IEA Member State (solidarity principle).

The Law of 26th January 2006 defines a supply crisis as “a reduction in oil supply as referred to in Articles 13, 14 and 17 of the Agreement on an International Energy Programme or unanimously recognised as such by the Governing Board of the International Energy Agency or a situation inducing such a reduction that supply no longer suffices to meet normal demand, and recognised as a supply crisis by the Council of Ministers”.

3. Who is in charge of holding and managing the strategic stocks? - top -

The national strategic stocks are, until 1/4/2012, held by the major companies (in the form of operational stocks) and by APETRA. During the 5 years following APETRA's creation the companies' individual stockholding obligation will gradually diminish from 15 days' stocks above the threshold quantity of 100.000 tons to nil above the threshold at a rhythm of 3 days per year. 

As of 1/4/2012 APETRA is managing all the strategic stocks. 

4. Where are Belgium's strategic stocks located? - top -

Pursuant to the Law of 26th January 2006 Belgium's strategic stocks may be held in the following locations :

• company stocks must be located in Belgium in the form of finished products or mix components.
• APETRA's stocks may be located for up to 30 % in another Member State with which Belgium has concluded a bilateral agreement on strategic stocks, i.e. the Netherlands, Luxembourg, Germany, France, the UK and Ireland.

The 30% rule does not apply within the first 5 years of APETRA's existence or can be increased by the Energy Minister in case of insufficient company stocks offered or when the company stocks are affected at a price superior to the contribution to fund APETRA.

5. What does "APETRA" stand for? - top -

APETRA is the public limited company with social goal responsible for managing the strategic stocks other than those held by the major oil companies. 
APETRA stands for Agence de Pétrole – Petroleum Agentschap, Petroleum Agency.

6. How much is the contribution to the maintaining of the strategic stocks and how is it calculated? - top -

APETRA is financed by means of a contribution. The contribution to the financing of APETRA is included in the maximum price of gasoline, heating gasoil, diesel fuel, kerosene and jet fuel as well as residual fuels.
This contribution is calculated according to a formula based on the international oil quotations of the product in question in the preceding period, on short-term interest rates, on storage and refreshment costs, on costs relating to the monitoring of the strategic stocks as well as on APETRA's operating expenses.

The contribution is paid by the companies that have an excise number whenever they put the oil products "into consumption" (payment of excise duties and VAT). 

7. How does APETRA manage the stocks? - top -

APETRA  can manage the stocks for which it is responsible in 2 ways:

1° by contracting "disposition rights" (tickets) on stocks held by Belgian and foreign oil companies.

APETRA launches calls for tenders for the quantity wanted, including quality, accessibility and availability requirements to be met.  These tenders relate to quantities held in tank and therefore to both the product and its storage. In case of an oil crisis, APETRA has the right to purchase the underlying product stocks. Maximum 30% of this type of stocks may be maintained in a EU Member State with which Belgium has concluded a bilateral agreement.

2° by acquiring crude oil/finished petroleum products in property. 

In order to manage the owned stocks APETRA launches and award calls for tenders for 

i. the product itself and
ii. the storage capacity in which to store the products.

8. How does APETRA buy stocks? - top -

APETRA buys stocks through calls for tenders. In order to pay for the purchases funding is sought for from financial institutions. 

9. 90 days of compulsory oil stocks: is this sufficient? - top -

The 90 days represent in fact one quarter of the total annual consumption of oil products by the Belgian end consumers (households and companies).  Should the supply of oil (products) diminish overnight by 100%, the agency will still hold 90 days irrespective of the other oil stocks held in the terminals of refiners and distributors and by the end consumer. Moreover, the countries and ways of supply of oil (products) are quite diversified and the international oil trade very flexible. 

The oil crises of the 70's resulted from a supply decrease of an overall 7%. Should Belgium suffer a supply disruption of e.g. 10%, the stocks managed by APETRA will suffice to maintain a 100% supply over a period of not 90 but 900 days. This irrespective of measures of demand restraint that coul be taken by the gouvernement.     

10. What happens if my company has an individual stockholding obligation but does not have sufficient operating stocks? Can my company turn to APETRA? - top -

The Law of 26th January provides that a company subject to an individual stockholding obligation that holds insufficient operating stocks to fulfil that obligation may transfer part of its obligation to APETRA.  APETRA will, against payment, hold the obligation. The fee to be paid to APETRA equals the contribution valid at that given moment. 

11. In which storage facilities can the strategic stocks be stored? - top -

The storage facilities in which the stocks managed by APETRA can be stored  must be “eligible depots”. These depots must have a minimum capacity of 5,000 m³ and must meet certain loading, unloading and accessibility requirements.

More information on the criteria for "eligible" storage facilities can be found in our section "ongoing tenders", general information".