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Montenegro: Jugopetrol positioned to secure contract for fuel reserve storage

Jugopetrol, Montenegro’s main fuel distributor and a subsidiary of Greece’s Hellenic Energy, has become the sole bidder in the Government’s tender for leasing storage facilities intended for the country’s strategic petroleum reserves. The offer will now be evaluated by the national hydrocarbons administration, which will decide whether to move forward with contract negotiations.

The tender, first announced in October and later extended until 4 November, aims to secure storage capacity for 15,000 to 20,000 cubic meters of EN 590 diesel over a three-year period. The chosen operator will be responsible for maintaining product quality and volume, as well as providing insurance coverage for the stored fuel.

The initiative is part of Montenegro’s ongoing effort to harmonize its regulations with European Union requirements, which mandate that member and candidate countries maintain fuel reserves equivalent to at least 90 days of consumption to safeguard against potential supply disruptions. To reach this goal, the Government plans to purchase between 14,000 and 17,000 tons of diesel in 2025, depending on market conditions and available storage space. A separate procurement valued at around 11 million euros is expected by the end of the year to finance part of the acquisition.

Currently, the country’s largest fuel importers—including Jugopetrol, Croatia’s INA and Slovenia’s Petrol—have accumulated approximately 40 percent of the required mandatory reserves. The remaining 60 percent will be supplied by the state.

According to the Ministry of Energy, Jugopetrol is presently the only company capable of providing suitable domestic storage facilities. However, if the financial terms of the bid are deemed inadequate, the Government may explore options for leasing storage capacity in neighboring Croatia or Italy.

Officials also confirmed that Montenegro’s own oil depots in the port city of Bar will eventually be used for national reserves. However, the facilities are undergoing extensive renovation and will not be operational before late 2026. Until then, the country will rely on leased storage sites to fulfill legal obligations and maintain fuel security in line with EU standards.

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