In accordance with Article 46 of the Law on Compulsory Oil Reserves (“Official Gazette of the Republic of Macedonia” No. 144/14, 178/14, 199/15, 197/17 and 7/19 and (“Official Gazette of the Republic of North Macedonia” No.275/19 and 150/21 – hereinafter: LCOR), the existing Directorate for Compulsory Reserves of Oil and Oil Derivatives (DCOR) which was established pursuant to the Law on Compulsory Reserves of Oil and Oil Derivatives (Official Gazette of the Republic of Macedonia No. 84/08, 35/11, 84/12, 43/14 and 83/18 and (“Official Gazette of the Republic of North Macedonia” No. 101/19), with the day of commencement of the implementation of the LCOR on January 1, 2021, continued to function as the Macedonian Compulsory Oil Reserves Agency, i.e. from July 13, 2021 as the Compulsory Oil Reserves Agency (hereinafter: MACORA).
With the adoption of the LCOR in 2014, the domestic legislation was harmonized with the directives of the EU legislation in the field of oil reserves, i.e. in this law the provisions of the Council Directive 2009/119/EC imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products, and provisions from Commission Implementing Directive (EU) 2018/1581 of 19 October 2018 for amending Council Directive 2009/119/EC as regards the methods for calculating stockholding obligations, were transposed.
Pursuant to LCOR, MACORA is a standalone, independent and non-profit legal entity which performs public interest affairs and is a central body for storing compulsory reserves and it is the only one authorised for the establishment, maintenance, storage, keeping and selling of the compulsory reserves of the Republic of North Macedonia.
The operation of MACORA is based on the principles: competence, professionalism and transparency and performance liability. For its operations MACORA is responsible before the Government of the Republic of North Macedonia.
Obligation to maintain compulsory reserves
The compulsory reserves are formed and stored in order to ensure the uninterrupted supply of the market with crude oil and/or oil derivatives in the event of impaired energy security caused by extraordinary disruption and significant and sudden decline in the market supply with crude oil and oil derivatives under the provisions of the LCOR and the bylaws arising from it. Extraordinary disruption of the supply can be caused by disruption of the regional market of crude oil and oil derivatives and/or causes and conditions to which occurrence cannot be influenced, and which occurred in the Republic of North Macedonia and/or in the countries through which the import of crude oil and oil derivatives for the market needs of the Republic of North Macedonia is done.
The compulsory reserves shall be used:
- in case of disorder and disruption in the supply of oil derivatives which may be caused
to the market of the Republic of North Macedonia, and
- shall be also used to fulfil the international obligations of the Republic of North
Establishment of compulsory reserves
Pursuant to law, the compulsory reserves shall be formed gradually, in order to ensure that the total compulsory reserves held at all times in the Republic of North Macedonia correspond to at least 90 days of average daily net imports or 61 days of average daily inland consumption in the previous calendar year, depending on whichever of the two specified quantities is greater.
Structure of compulsory reserves
The compulsory reserves held as refined products shall be composed of one or more of the following types of oil derivatives classified in the following categories:
- light distillates or light oil derivatives (liquefied petroleum gases LPG-butane, propane and mixture of butane and propane, all other motor gasoline and aviation gasoline),
- intermediate distillates or intermediate oil derivatives (all types of diesel for cars, gas oil or extra light 1 (EL-1) and kerosene) and
- heavy distillates or heavy oil derivatives (all types of fuel oil) and others (bitumen and petroleum coke).