Sweden places a minimum stockholding obligation on industry.
Oil companies and large consumers are obliged to hold at least 25% of the total amount of products sold or consumed, on a net basis, during the previous calendar year.
There are three main categories of companies obliged to hold stock: companies selling or importing more than 50 000 cubic metres (roughly 314 kb) of refined products annually; power plants consuming more than 5 000 cubic metres (roughly 32 kb) of oil products annually; and district heating plants or gas turbine plants with more than 5 MW installed capacity.
As per EU legislation, companies with the obligation to hold product reserves are able to substitute a portion of this with crude oil.
The Swedish Energy Agency sets requirements concerning the location of the compulsory stocks. This includes whether a certain proportion of the stocks held by sellers is kept underground or protected in some way, or whether the stocks must comprise oil products with certain properties.
Ticket arrangements for stocks held abroad are allowed, according to specific rules set out in Swedish Energy Agency regulations. Such arrangements must be granted beforehand by the agency and formalised by a contract covering a period of not less than three months and not more than one year.
Bilateral agreements for stockholding abroad are subject to a maximum of 20% of an organisation's total stockholding requirement for each stock category. Sweden currently has formal bilateral agreements with Denmark, Estonia, Finland, Ireland, the Netherlands and the United Kingdom. Stocks held in those countries on behalf of a Swedish company must be owned by the Swedish company or by a company in the country involved.
See also Closing Oil Stock Levels in days of Net Imports
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