Poland meets its minimum stockholding requirement to both the IEA and the EU by holding some 14 days of state-owned emergency reserves and maintaining a stockholding obligation on industry.
Industry's obligation has been progressively increased in anticipation of IEA membership, rising from the 66 days required at end 2006 to 76 days by the end of 2008. All liquid fuel producers and importers are obliged to hold minimum stock levels based on their production or imports from the previous calendar year.
LPG is given specific treatment, reflecting its growing importance in the total mix of oil product demand: producers and importers must hold three days cover of LPG by the end of 2007. This will be increased progressively to a stockholding obligation of 30 days by the end of 2011. This obligation may be met by holding volumes of motor gasoline that equal the calorific value of the LPG obligation.
The Material Reserves Agency (ARM) is responsible for holding, financing and managing the state reserves of the main resources considered essential for national security. Under the direction of the Ministry of Economy, ARM manages the state-owned oil emergency reserves and also monitors the stockholding obligation on industry. Polish legislation requires the ARM to hold oil stocks equivalent to no less than 14 days of net imports. If for any reason the combination of public stocks and stocks held by industry failed to meet minimum obligations, the ARM level of public stockholding would be increased by the necessary amount. Industry typically holds stocks in excess of its actual obligation, thereby providing an additional buffer for meeting the minimum 90 days of net imports.
A maximum of 55% of the industry stockholding obligation may be held in the form of crude oil. This will be lowered to 50% in 2010, requiring half of all compulsory industry reserves to be held in the form of refined products.
The ARM stocks of crude oil are held mainly in storage tanks rented from PERN, with some amounts in the salt dome storage facilities of PKN Orlen. Volumes of gasoline and diesel oil stocks are held in storage rented from OLPP. No amount of public stocks is allowed to be held outside the territory of Poland.
Compulsory industry reserves may be co-mingled with operational and commercial stocks. It is also permitted to fully cover the obligation through ticketing. In this case, a limit of 5% of the total obligation can be held outside of Poland, provided there is a bilateral stockholding agreement between governments. At present, Poland does not have bilateral agreements with any other countries.
See also Closing Oil Stock Levels in days of Net Imports
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