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Denmark

Due to its status as net exporter, Denmark currently has no stockholding obligation to the IEA.

Denmark does have an obligation to the European Union based on consumption. Danish authorities require the industry to hold stocks corresponding to 81 days of oil consumption. The private sector covers the entire stockholding obligation through a non-governmental stockholding association established (by the private sector) in 1964, called Foreningen Danske Olieberedskabslagre (FDO). The FDO is financed by oil companies and operates the stockholding on their behalf.

The compulsory stockholding regulations stipulate that any company that produces or imports more than 1 Kt/yr must hold compulsory stocks corresponding to 22.2% of their annual domestic sales. The obligation is divided into two types of oil stocks:

  • Emergency Stocks, which are held by the FDO and are stored in underground, reinforced concrete tanks.
  • Minimum Stocks, which are held in conventional oil tanks. The FDO also holds a large part of these stocks; the remainder are held by the private sector.

Legislation allows for compulsory product stocks to be held as crude oil up to a maximum of 40% each for the obligations on gasoline and distillates, and up to 50% for fuel oil. Most of the FDO stocks are oil products. This was introduced in order to increase response flexibility and as a partial solution to quality problems arising from FDO stocks not being co-mingled with operational stocks.

Danish regulations stipulate that compulsory stocks must be stored in Denmark or in another EU member state, in accordance with a bilateral agreement. No other type of stocks can be taken into account for fulfilment of the stock obligation. At present, Denmark has bilateral stockholding agreements with Estonia, Finland, Ireland, the Netherlands, Sweden and the United Kingdom. Denmark does not allow stocks to be held abroad except through a ticket system. It also stipulates that companies cannot fulfil more than 10% of their obligation through stocks held abroad. 

See also Closing Oil Stock Levels in days of Net Imports