Spain has kerosene reserves for 90 days
The Spanish government opens up to sharing reserves with Europe, but without jeopardizing its own supply
MadridSpain has 90 days of kerosene reserves, taking into account operational reserves (stocks held by oil companies and airports to ensure the daily supply of this essential fossil fuel for aviation), as well as strategic reserves (inventory held by the State). This means that if kerosene stops arriving or being produced in the State from tomorrow, there are reserves of this fuel until early August.
maximize production in Spanish refineriesmaximize production in Spanish refineries and prioritizing imports from third countries.
"I want to send a message of maximum reassurance [to the population]," Aagesen stated this Tuesday after the meeting. The minister acknowledged that while the situation in most European countries regarding the guarantee of kerosene, but also of other oil derivatives like gasoline, is critical, the situation in Spain is different: "What is happening in Europe does not correspond to what is happening in Spain. Supply is guaranteed."
Again, Aagesen pointed out that the State has an advantage in terms of production of this fuel for aircraft: it is one of the three EU member states with the greatest oil refining capacity. 80% of the kerosene consumed in Spain is produced in the eight refineries spread throughout Spanish territory, including Repsol's refinery in Tarragona, and only 20% of the fuel is imported.
Regarding the rest of fossil fuels, from raw materials (oil and gas) to other crude derivatives, the State's exposure to a blockade of the Strait of Hormuz is minimal. In fact, in the case of natural gas, no fuel was expected to arrive from the Persian Gulf countries by 2026. And oil imports only account for around 5%. Therefore, the ministry sends this message of "calm".
Libya and Mexico, oil suppliers
However, the Hormuz crisis is indeed felt in the arrival of oil to Spain, however little it may be. According to the March report from the Corporation of Strategic Reserves of Petroleum Products (Cores), published this Tuesday, crude oil imports from the Middle East fell by 54.6% in the month in which the United States and Israel attacked Iran, when compared to what had happened in March of the previous year. In particular, the decrease in oil from Iraq stands out. In any case, they represent 4.8% of the total oil imported, while a year ago they accounted for 9.2%.
During this month, the State imported 27 types of oil from 14 different countries. Libya was the main supplier, followed by Mexico.
Nerves in Europe
In Europe, in general, they do not see the situation as Spain does, and in fact, nervousness is indeed present in other member states. "The world is facing what could be the most serious energy crisis in history," stated the European Commissioner for Energy, Dan Jorgensen, this Tuesday, and anticipated that Brussels is already "preparing".
For days, there have been meetings to see how countries can prepare to face a possible shortage of kerosene in some states, especially heading into summer, when tourism boosts air travel – next week there is a new meeting of Energy Ministers-. "Spain will be supportive, but we also want to have different solutions on the table to analyze them in detail," said the minister. The Spanish government, therefore, is open to sharing its own reserves to help other countries, but will prioritize that the security of supply in Spain is not put at risk.
What solutions are being discussed in Brussels? In addition to sharing a level of reserves or exploring joint purchases, the ministry explains that other options may come into play, such as increasing the level of tankering allowed for aircraft, which is set at 10%. This, however, is a highly polluting practice: it means that airlines can load more fossil fuel (kerosene) at an origin airport if the price at the destination airport is more expensive or scarce. It represents a cost saving for companies, but it causes more kerosene consumption and more pollution.
All in all, the State hopes that Brussels will look at the bigger picture and not just focus on short-term solutions. That is why it continues to push for a boost to the ecological transition through fiscal and economic support. For example, the Spanish government wants green investments not to be counted towards debt, i.e., in compliance with fiscal rules, and for there to be more fiscal leeway. But it also wants to extend European funds to invest in the electricity grid.