Netherlands Buying Diesel Before Winter
09.26.2022 By - NEWS

September 26, 2022 [RIGZONE] – The Netherlands is purchasing millions of barrels of diesel in preparation for what is set to be a winter like no other.


The country’s petroleum stockpiling agency, COVA, has issued tenders seeking more than three million barrels of diesel for delivery before the end of the year, with potentially more to come. That comes as the European Union prepares to cut-off seaborne supplies from Russia, amid a broader energy crunch.

Earlier this year, the Netherlands was part of a globally coordinated release of crude and oil products in response to Russia’s invasion of Ukraine and sold about 180,000 tons of diesel from its strategic inventories. Now, the Dutch government wants to rebuild its diesel stockpiles, requiring the replacement of barrels previously sold, along with millions more.

The decision to boost stockpiles is in preparation for both winter and the forthcoming EU sanctions, according to a person familiar with the matter. COVA was asked by the Dutch government to restore the volumes that were distributed in April-May and boost inventories, if possible, to do so without disturbing markets, the person said. The Dutch government declined to comment.

From early February, almost all seaborne cargoes into the bloc from Russia — still the continent’s biggest external supplier — will be banned. That will clash with Europe’s consumption of diesel-type heating fuel surging in the coldest months of the year. This year, there’s also the added pressure of so-called gas-to-oil switching, whereby businesses burn diesel and other fuels instead of costly natural gas.

COVA has been instructed by the government to return its stocks to the original levels, according to a statement on its website. The agency also has been told to expand temporarily its diesel holdings by 500,000 tons — enough to supply the whole of Germany, Europe’s biggest economy, for almost four days.

Pro Trial: Access 10,390 Tank Terminal and Production Facilities

10,390 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

South Korea's KNOC to Get 4 mil Barrels UAE Crude in Joint Storage Project with ADNOC
03.24.2023 - NEWS
March 24, 2023 [S&PGlobal] – South Korea recently received 2 million barrels of crude ... Read More
China Exports More Fuel Than Expected
03.22.2023 - NEWS
March 22, 2023 [Energy Intelligence] – China’s combined exports of gasoline, diesel a... Read More
Why Brazil Looks to Boost Oil Refining Capacity
03.22.2023 - NEWS
March 22, 2023 [bnamericas] – After years of relative stagnation, Brazil is likely to resum... Read More
Iraq and UAE Spearhead Downstream Expansion
03.22.2023 - NEWS
March 22, 2023 [] – Oil markets have been affected by financial market challeng... Read More