Portugal to invest €60 million in crude oil storage capacity

strategic oil reserves crude oil storage energy security Matosinhos refinery closure infrastructure investment

The Portuguese government has announced a €60 million investment to expand domestic crude oil storage capacity. This initiative aims to bring strategic reserves back to Portugal, which are currently partially stored abroad.

Following the 2021 closure of the Matosinhos refinery, Portugal lost approximately one-third of its national storage capacity. This shortage necessitated the transfer of roughly 132,000 tonnes of crude oil to a salt cavern in Manosque, France, under a ten-year contract with Géosel. While the government maintains that these reserves remain Portuguese state property and that the country meets EU energy security standards with 92 days of consumption coverage, the situation has drawn political criticism.

Beyond the physical crude in France, nearly 40% of the state's total strategic reserves are held outside the country, including reserve ‘tickets’ in the Netherlands and Italy. The new storage infrastructure is expected to be operational within four to five years. Meanwhile, the country's remaining refinery in Sines is scheduled for a partial shutdown during October.