Serbia, Country is considering increasing oil reserves ahead of JANAF’s oil transport halt

, News Serbia Energy

Serbia is considering options for increasing its oil reserves in preparation for potential disruptions in the supply of crude oil to oil company NIS, which operates the country’s sole refinery in Pancevo.

The statement from the Ministry of Energy said that possibilities of using domestic oil and increasing reserves of crude oil and oil derivatives in warehouses are being considered, in order to respond as adequately as possible to interruptions of supply via oil pipelines.

Earlier this week, Croatian oil transportation company JANAF said that it will halt crude oil transportation for NIS as of 15 May due to the European Union’s sanctions against Russia. NIS is majority owned by Russian GazpromNeft.

NIS has reserved capacities for transportation of 3.2 million tons of crude oil for 2022, but JANAF will be unable to transport crude oil for NIS under this contract after 15 May, unless EU sanctions on Russian companies are lifted.

Serbian President Aleksandar Vucic said last week that Serbia is looking for an alternative supply route for Russian crude oil, with Albanian port of Durres as one of the possibilities.