HomeOilMontenegro Initiates Diesel Procurement to Establish Mandatory Oil Reserves

Montenegro Initiates Diesel Procurement to Establish Mandatory Oil Reserves

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Montenegro has initiated a public procurement process aimed at acquiring 16,500 metric tons of diesel fuel, which translates to approximately 19.6 million liters. This move is part of the country’s strategy to develop mandatory oil reserves, with an estimated contract value of 11 million euros. The urgency of this procurement is underscored by Montenegro’s obligations under EU accession negotiations, specifically regarding energy security.

The current tender stipulates that the diesel must comply with strict origin requirements, explicitly prohibiting any crude oil sourced from the Russian Federation. Furthermore, if the diesel is produced in a third country that was not a net exporter of crude oil in 2024, it must be no more than 60 days old, as per IEA data.

A previous attempt to procure diesel in December 2025 was annulled due to the sole bid from Jugopetrol failing to meet necessary formal requirements. The new procurement procedure includes provisions for quality verification prior to unloading at the Port of Bar. Fuel quality will be assessed through laboratory analyses to ensure compliance with national and European standards, including MEST EN 590 and Montenegro’s regulations on liquid petroleum fuels. Certification will be conducted by an independent Type A inspection body accredited under MEST EN ISO/IEC 17020.

The diesel fuel must adhere to the latest EN 590 specifications, which include a sulfur content limit of 10 ppm and a cold filter plugging point (CFPP) not exceeding -15°C. Additionally, visual inspections are required to confirm that the fuel is clear, free from water, and devoid of sediment.

The procurement is limited to a maximum volume of 16,500 metric tons and constrained by the budget of 11 million euros. Bids for this tender can be submitted until March 11, 2026. Authorities have expedited the bidding timeline due to the pressing need for Montenegro to fulfill its legal obligation regarding compulsory oil reserves—an essential benchmark for advancing Chapter 15 (Energy) in EU accession talks.

This urgency is further amplified by a storage agreement signed on December 4, 2025, which allows the storage provider to terminate the agreement after six months if no delivery of reserves occurs. Deliveries to storage facilities can only commence 60 days after the winning bidder is officially announced.

As Montenegro’s state-owned storage facilities operated by MontenegroBonus are yet to be upgraded, initial diesel reserves will be stored at facilities owned by Jugopetrol. The Law on Security of Supply of Petroleum Products adopted at the end of 2024 established a legal framework for these mandatory reserves. Under this legislation, the state is tasked with securing 60% of the required reserves while private fuel distributors—including Jugopetrol, INA, and Petrol—are responsible for collectively providing the remaining 40%.

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