The Ministry of Mining, Oil and Gas, headed by Minister Admir Šahmanović, is set to initiate a project for the adaptation and modernization of state-owned oil tanks at the Port of Bar. This project, aimed at establishing strategic reserves of petroleum products, is estimated to cost around two million euros and is expected to receive approval from the government during today’s session.
The funding for this initiative is sourced from direct budget support provided by the European Commission to Montenegro to tackle the ongoing energy crisis. This includes an allocation of 7.5 million euros specifically earmarked for the creation of mandatory reserves and the upgrading of storage capacities, as outlined in the action plan proposed in April 2023.
Recently, the Montenegrin government approved a draft law on the security of petroleum product supplies, which addresses the maintenance of minimum reserves and establishes mechanisms to manage supply disruptions. This legislative measure is anticipated to be ratified by Parliament in the near future. In the meantime, to ensure effective storage and management of petroleum reserves, the ministry has commenced the adaptation and modernization of tanks R-11, R-12, and R-18 at the Bar terminal.
The project will involve the launch of two public procurement procedures to select contractors for the construction work and oversight, with estimated costs of:
- €1,772,613.28 (including VAT) for adaptation and modernization.
- €70,906.45 (including VAT) for project supervision.
Funding for this initiative is included in the amendments to Montenegro’s budget.
“This is a significant project marking the start of the reconstruction and adaptation of the oil tanks in Bar, a vital part of our national oil infrastructure. These storage facilities are essential for ensuring a continuous supply of petroleum products. The issue has been unresolved for too long, and we have taken all necessary steps to implement this important project successfully. In light of increasing geopolitical challenges in the global oil market, modernizing this system is of strategic importance for Montenegro. Enhancing storage capacity and security will stabilize domestic energy markets, protect our interests, and contribute to energy security. We believe these investments will significantly enhance our energy sector and ensure a safe and stable future for all citizens and the economy of Montenegro,” stated officials from the Ministry of Mining, Oil and Gas following the government’s meeting.
