The value of Belgium’s strategic oil stockpile increased by €1 billion in 2021-2022 due to a rapid rise in oil prices, De Tijd reports, citing information from Apetra – the government agency for managing strategic oil stocks.
Since the height of the Covid-19 pandemic Belgium has worked to rapidly replenish its supplies of black gold, especially faced with an unstable geo-political situation as a result of the war in Ukraine. While Belgium’s oil reserves were valued at €1.27 billion at the end of 2022, they stand at €2.2 billion as of the end of 2022.
The Petroleum Agency (Apetra) is responsible for ensuring that Belgium has sufficient reserves of oil, diesel, petrol, and paraffin in the event of total supply disruption. These reserves must be enough for a minimum of 90 days. Belgium, along with its neighbours, made a concerted effort to build up supplies from 2021.
The significant recovery in oil prices – largely driven by an increase in economic activity following the Covid-19 pandemic – has also boosted the value of Belgium’s reserve assets. While in 2020 the oil in reserve depreciated by €615 million, the value of oil increased by €768 million in 2021 and by a further €174 million last year. At the end of 2022 its total value was around €2 billion.
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The higher inventory cost has allowed the government agency to turn an on-paper profit of €272 million in 2022. Forward profits have now accumulated to €1.2 billion, but this is largely thanks to contributions from fuel sales. This can still ultimately be used to help Belgium pay its debts.
With the 2035 ban on new combustion engine vehicles looming and a global shift away from oil products, Apetra will need to make major changes. Greater electrification could entirely slash the agency’s revenues, meaning the State would lose out on the value accumulated. The Federal Government has already approved a bill from Energy Minister Tinne Van der Straeten to change the remit of the agency.
The new law, which will be up for debate in Parliament in the near future, would enable the agency to build up reserves of other energy types. This could include hydrogen or even rare earth metals. Apetra would become Aseva (Energy Storage Agency).
