Oil

State of compliance
 

  • Stockholding obligation

    Stockholding obligation

    Albania’s current emergency oil stockholding system is assigned to the oil industry. According to the Law No 8450 of 24.02.1999 “On refining, transportation and marketing of oil and gas and their by-products”, as amended, and Decision of Council of Ministers No 808 of 5.11.2004 “On the maintenance and management of emergency stocks for oil, gas and their by-products”, as amended, the oil refineries and wholesale oil and their by-products companies are obliged to maintain minimum stocks, equal to 90 days of average sales, which is calculated based on the actual  data results of previous year’s operations.

    However, the current system is not compliant with Directive 2009/119/EC and for this purpose, a working group was set up by the Order of the Prime Minister in December 2013. The draft Law “On the establishment, maintenance and management of security minimum stocks of crude oil and petroleum products” foresees the set-up of the State Agency for Security of Oil Reserves (ASOR), which will be a public body in charge to establish, maintain and manage the security stocks. ASOR is foreseen to be the only body in Albania, which will authorise the purchase, management and sale of the security stocks of crude oil and/or petroleum products, as stipulated in the abovementioned draft Law.

    The legal procedure for the approval of the draft Law by the Government started in July 2018. Following the reflection of the preliminary comments of line ministries, the revised draft Law was redistributed for coordination to these institutions and the Competition Authority, in order to prepare a final version.  

    Currently, the representatives of different institutions are discussing the Law in order to reach a final draft, which should then be approved by the Government and afterwards by the Albanian Parliament.

  • Specific stocks

    Specific stocks

    In Albania, no specific stocks are currently in place. However, the new draft Law on Emergency Oil Stockholding foresees that the Government may decide on the specific stocks constitution as part of the compulsory stocks and the list of hydrocarbon energy products to be used, the level of specific stocks and the duration of the obligation to maintain specific stocks. According to this draft Law, the establishment and maintenance of the specific stocks has affect at least one calendar year.             

  • Availability and accessibility

    Availability and accessibility

    In Albania, the new draft Law foresees that compulsory stocks maintenance is a priority and compulsory stocks must be available and physically accessible at all times. A part of the compulsory stocks may be stored in the Member States of the European Union and / or signatories to the Energy Community Treaty, subject to a bilateral agreement between the Government and the state in which the compulsory stocks shall be stored.  Compulsory oil stocks that are owned by the Government must be insured at all times. Economic operators are responsible for any losses of stocks and damages to third parties and the environment. The Government shall ensure that there are no obstacles to the transfer of the compulsory stocks from the territory of Albania to another state with which such a bilateral agreement has been concluded.

  • Reporting

    Reporting

    In Albania, the draft Law foresees that the Minimum Oil Stocks Agency will keep and continually update detailed records of all stocks that it holds and also all others that are maintained in the territory of Albania and in third countries under the bilateral agreements. Albania submits regularly  the Joint Organisations Data Initiative - Oil (JODI) Questionnaire.

  • Emergency procedures

    Emergency procedures

    The new draft Law establishes the necessary procedures for intervention in case of a serious shortage of petroleum products in the market. In the event of difficulties in supply, the release of the stocks is decided by the Government, upon the proposal of the minister in charge of energy and approval of the crisis management committee of the Government. In the event of an effective international decision to release the compulsory stocks, the Government is entitled to decide on the release of the stocks as fulfilment of its international obligations. According to the draft Law, the rules and procedures for drafting the National Response Plan, including the determination of the market price and use of the security stocks, shall be defined by the Government. In such a case, the Ministry of Infrastructure and Energy notifies the governmental decision immediately to the European Commission and the Energy Community Secretariat.