Facing the wrath of the EU, Cyprus expects to spend €25 million on fuel storage to bring the country in line with a 2009 Oil Stock Directive that should have been transposed before the end of 2012.
The European Commission last month decided to refer Cyprus to the EU Court of Justice for failing to transpose the directive in time. The February decision came on the same day the Energy Minister tabled a relevant bill before the House.
The directive requires member states maintain stocks of crude oil and petroleum products for 81 days to ensure possible disruptions do not compromise oil supply security.
The 2014 budget says expenditure for 2014 stands at €25,003,100 for purchasing and maintaining storage.
Among other expenses, this brings the budget's total to €26,083,590. Projected income stands at €17m with the €9m shortfall covered by leftover funds from previous years.
To fulfil the 81 day minimum supply obligation, amounting to 426,000 metric tonnes, COSMOS has renewed agreements for storage space in Greece and Holland which currently store 75,000 metric tonnes and 40,000 metric tonnes respectively.
Along with the 203,000 metric tonnes in COSMOS storage, 90,000 stored by the Electricity Authority, the purchase of 3,000 more metric tonnes during the year which will be stored at the Cyprus Petroleum Storage Company, the total stored comes to 411,000.
The remaining 15,000 metric tonnes is expected to be covered through the fuel stored and used by local companies which, according to COSMOS, go through 60,000 metric tonnes per month.