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ENERGY MARKET

Oil, oil derivatives, compressed natural gas and biofuels

By the adoption of the 2014 Energy Law, in line with energy policy goals, the development of competition in the oil, oil derivatives, biofuels and compressed natural gas sectors was stimulated in the Republic of Serbia in order to increase the efficiency of this sector via market mechanisms. In a narrow sense of energy activity regulation, regulated prices in this sector are established only for natural monopolistic activities of oil transportation via oil pipelines, i.e. oil products transport via product lines. New Energy Law introduced new meanings for some of existing energy activities for which a licence is envisaged. E.g. oil derivatives production does not only imply processes of production of oil derivatives by refinery processing of crude oil, degassing or separation of light liquefied hydrocarbons but it also includes all those technological processes resulting in standardized products of prescribed quality. In addition, production of bioliquids was separated from the existing biofuels production activity, i.e. a licenced activity of biofuel production now includes the process of production of standardized motor fuels meant for vehicles drive, while a licenced activity of bioliquids production includes the processes of production of standardized energy fuels of bio origin meant for heating and cooling. As it is prescribed by the Energy Law, the right to blend biofuels with fuels of oil origin was given to energy entities with available specific energy facilities for homogenization of these fluids and with the relevant energy licence. In the same manner, the new Energy Law introduces the activity of filling vessels with liquid oil gases used for energy purposes such as propane and propane-butane mix as well as the activity of filling vessels with compressed, i.e. liquefied natural gas. Trading energy activities in the oil derivatives and biofuels sector are regulated by regulations in the field of trade and energy. Thereby, in addition to traditional trade in motor fuels and other fuels on petrol stations, the Energy Law also included a licenced activity of trade in fuels elsewhere but on petrol stations as energy fuels retail, i.e. retail in fuels which are not used for vehicles except for sports airplanes. In such a manner, the supply of sports airplanes with aeropetrols was provided as well as the supply of final users with energy carriers for heating and cooling purposes, e.g. heating oil, bio heating oil, propane, propane butane mix, etc. The same regulations regulate the trade in oil, oil derivatives, biofuels and compressed natural gas as traditional wholesale where for the trade in specific energy carriers, in addition to general quality-related conditions, there are specific quantity-related conditions introduces, i.e. necessary storage capacities where such trade is performed. Energy entities holding this licence are entitled to perform local and foreign trade in energy carriers if they complied with prescribed minimum technical conditions. As a specific type of wholesale, with specific conditions defined in the field of fire protection, trade in fuels for watercrafts was introduced. In such a manner, the supply of big ships for local sail and of technical watercrafts in ports within river flows of the Republic of Serbia. The regulations in the field of trade do not recognize oil, oil derivatives and biofuels storage as a service in the field of trade but it is still a licenced energy activity. Energy entities holding a licence for this activity were entitled with a right to provide energy carriers storage service in specific-purpose tanks belonging to traders, final customers or to a national body appointed for mandatory oil and oil derivatives reserves.


RELATED LINKS
Oil and oil derivative market in Serbia
Transportation Grid Code


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