Finland holds public stocks and places a minimum stockholding obligation on industry.
Finland's stocks are held both in a public agency and by industry. NESA, the public stockholding agency, started operations in 1993 and is responsible for state-owned oil stocks. According to the emergency reserve target set by the Finnish government, NESA must hold a total of five months consumption volume of stockholding, including compulsory industry stocks. This enables the country to meet both IEA and EU oil stock requirements.
In terms of industry stocks, a stockpiling obligation is imposed on oil importers. In addition, several industries are required to hold two months equivalent volume of their stock sales. This includes any company with annual imports of more than 39.5 kb (5 Kt) of aviation gasoline and jet fuel, more than 84.5 kb (10 Kt) of motor gasoline, or more than 147.5 kb (20 Kt) of crude oil.
Finnish importers of crude oil have an obligation to hold stocks of crude. However, they can apply for a permit from NESA to substitute up to 50% of this crude oil stocks obligation with oil products. Likewise, importers of oil products have an obligation to hold stocks of the same products, but can apply for permission to substitute their obligation for a particular product by other finished products. Substitution of oil products by crude oil is not allowed.
Both compulsory stocks and NESA-owned stocks are located on the coastline of Finland, with transportation possible by sea, road or railway. Public stocks owned by NESA are not allowed to be held outside Finland. By contrast, up to 30% of industry-owned compulsory stocks can be held outside the country, but only within the Baltic Sea area. It is also necessary to have an official bilateral agreement between the countries involved. Currently, Finland has two bilateral agreements, with Sweden and with Estonia.
See also Closing Oil Stock Levels in days of Net Imports
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