15:44 21.04.2020

Vitrenko from Naftogaz proposes using vacant storage facilities in Ukraine to store cheaper oil

2 min read
Vitrenko from Naftogaz proposes using vacant storage facilities in Ukraine to store cheaper oil

Ukraine has large volumes of vacant oil storage facilities and today the country could take advantage of using them in the conditions of the oil prices turned negative, Naftogaz Executive Director Yuriy Vitrenko has said.

"It seems that the oil storage business is the most profitable right now. We must not miss the opportunity and monetize it as much as possible," he wrote on Facebook on Tuesday night.

"In Ukraine there is a large oil transportation system where one can store oil, one working refinery (Kremenchuk) with significant storage facilities, as well as many oil refineries that have been shut down for a long time, but which at least had such facilities," Vitrenko said.

He also said with reference to other sources that the Ministry of Defense several decades ago had a huge storage facility with a capacity of 1 million tonnes.

Vitrenko said that the country should try to preserve not Russian oil, but oil from other oil producing countries.

"The situation with gas in Europe is different, but no one knows what to expect. Maybe our gas storage facilities will soon become the most profitable business," he said.

Vitrenko said that a drop in the price of oil futures in the world means that sellers are willing to pay for oil to be taken, since it is nowhere to store, and it is impossible to stop production without significant losses in the future.

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