What are the hydrocarbon strategic reserves?
In today’s highly volatile economic and geopolitical climate, in which we have experienced several blackouts, strategic reserves play a vital role. They are a mechanism designed to ensure the uninterrupted supply of essential goods and services, drawing on a country’s own production capacity. This system not only bolsters economic development and social welfare but also enhances a nation’s energy independence, particularly when it comes to hydrocarbons.
Strategic oil and fuel reserves
Strategic reserves of oil and fuels involve stockpiling petroleum products by the State for use in emergencies. Their purpose is to guarantee supply for a minimum period. The need for such a mechanism dates back to the 1973 oil crisis, especially for many European countries that import the bulk of the petroleum products they consume.
“Strategic petroleum reserves ensure supply for a minimum period, making a significant contribution to economic development and social welfare.”
Spain’s hydrocarbon reserves
Spanish legislation obliges all operators in the sector to maintain minimum holdings of hydrocarbons at all times. For petroleum products, the overall requirement is set at 92 days of sales or consumption. Of these, CORES (the Strategic Petroleum Reserves Corporation) must hold 42 days’ worth, while the remaining 50 days rest with industry players.
Similarly, companies must always keep stocks of Liquefied Petroleum Gas (LPG) and natural gas equivalent to 20 days of sales or consumption.
All strategic reserves are housed in large fuel tanks scattered across five regions of Spain: the North, Levante, Centre, South and the Canary Islands.
In the event of a shortage of energy supplies, regulations allow the government to place these minimum safety stocks, including strategic reserves, under direct CORES intervention, ensuring the most efficient use of the available energy resources.
CORES and Spain’s energy security
CORES is a non‑profit, public‑law corporation overseen by the Ministry for the Ecological Transition and the Demographic Challenge. It operates under private‑law rules, with governance shared between the Administration and the oil and gas sector.
Its mission is to safeguard Spain’s hydrocarbon supply, maintaining reserves of petroleum products, LPG and natural gas, and monitoring industry stocks. Since May 2022, CORES has also overseen the control of biofuels.
Additionally, it ensures adequate diversification of Spain’s natural gas imports by supervising that no single country of origin exceeds prescribed limits.
Grupo Hafesa’s role in strategic reserves
Grupo Hafesa, the holding company specialising in the marketing and distribution of petroleum products, plays a key part in managing Spain’s strategic hydrocarbon reserves. In particular, its Gijón facility (Petróleos Asturianos) is dedicated entirely to ensuring national supply. CORES leases the site, which joined the Group in 2017. Located at the port of El Musel in Gijón, it comprises six storage tanks with a total capacity of 240,000 m³ over more than 35,000 m².
“CORES does an excellent job coordinating and supervising all parties so that the system runs flawlessly. We have one of our plants in Gijón devoted entirely to these strategic reserves,” explains Diego Guardamino, Managing Director of Grupo Hafesa.
The Group is particularly proud to support Spain’s energy security through its strategy of enhancing hydrocarbon storage terminals, critical both for improving energy autonomy and for keeping the economy moving, as well as for maintaining robust strategic reserves.