A new policy push from the Federation of European Tank Storage Associations (FETSA) is calling for a sweeping reform of Europe’s energy security framework – suggesting that national stockpile systems are no longer fit for purpose in today’s volatile global environment.
Why reform now?
FETSA, representing over 160 companies operating 768 terminals across Europe, argues that the current national-first approach to strategic stockpiles leads to “hoarding” behaviour in crises and lacks the coordination needed across increasingly interdependent energy logistics systems. This became particularly clear during the Russo-Ukraine war and the resultant energy price spikes, where some countries scrambled independently rather than cooperating regionally.
“A more regional – rather than purely national or global – approach would better serve energy security needs,” FETSA states, warning against relying on emergency measures like demand destruction via high prices or rationing that bring economic and social hardship.
What FETSA is proposing
FETSA recommends a ten-point roadmap aimed at modernising and regionalising the EU’s energy security strategy:
- Product mix expansion: Broaden strategic reserves to include refined products and future carriers like hydrogen and synthetic fuels – not just crude oil.
- Stockpile size: Preserve or grow current volumes to increase resilience, not shrink them as consumption of traditional fuels declines.
- Fast-track permitting: Accelerate approvals for dual-use and strategic storage sites.
- Public investment: Use state funding to fill market gaps, particularly in infrastructure for future fuels and legacy facilities still needed for emergencies.
- Logistics enhancements: Improve rail capacity and site locations to ensure rapid deployment of reserves when needed.
- Simplified reporting: Clarify distinctions between commercial and strategic stocks while reducing red tape.
- Release policy: Avoid using strategic reserves as a price-control tool – focus instead on genuine supply disruptions.
- Ownership and cost sharing: Explore shared or government-led ownership models and user-pay levies to spread the cost of maintaining reserves.
- Industry collaboration: Establish regular dialogue between EU bodies, national governments, and the tank storage industry.
- Strengthen the EU mechanism: Expand the existing oil stocks framework to cover a wider range of fuels, enhancing strategic autonomy.
Implications for UK stakeholders
Though the UK is no longer bound by EU directives, the UK and EU have agreed to collaborate closely on energy security, and many UK companies remain integrated with EU supply chains. FETSA’s emphasis on refining capacity, logistics, and storage infrastructure mirrors concerns echoed domestically in the UK’s own energy security reviews as well as the push for new fuel infrastructure including hydrogen and renewable fuel storage.
FETSA’s call for improved cooperation and diversified strategic storage may be a useful reference point for UK policy development around energy resilience planning and storage investment.
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