Portugal holds public stocks and places a minimum stockholding obligation on industry.
The industry in Portugal has a minimum stockholding obligation equal to 70% of the EU obligation (based on consumption) of the three main product categories. The remaining 30% of the EU obligation is covered by the public stockholding agency, EGREP. EGREP is also responsible for holding the additional volume of oil needed to meet the IEA stockholding obligation, based on net imports. EGREP is a public corporation under the supervision of both the Ministry of Finance and the Ministry of Economy and Innovation. EGREP must own at least 25% of its stocks.
Portuguese policy stipulates that at least one-third of the individual stock obligations of companies (including EGREP) must be held as products. This applies separately to each category of qualifying products. Semi-finished products are counted as finished product within the appropriate qualifying product category. If an obliged stockholder (including EGREP) wishes to hold crude oil instead of part of its product stock obligation, the product yield must be agreed upon with the government.
As of 2005 new legislation opened the possibility of holding stocks abroad, subject to certain conditions, under bilateral agreements. Stocks held abroad must be held in another EU member country. Individual companies may not hold more than 10% of their obligation abroad and there is also a minimum quantity (20 Kt) that may be authorised. In total, not more than 20% of the country's overall obligation may be held abroad; this includes volumes held as stock tickets. Portugal has bilateral agreements with Germany, Spain and the Netherlands.
See also Closing Oil Stock Levels in days of Net Imports
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