Purchase and sales

The Netherlands is contributing to the collective action of the International Energy Agency (IEA) to make additional oil stocks available to the market. In this context, the Minister of Climate Policy and Green Growth (KGG) has given COVA an additional instruction to make gasoline and diesel available. An earlier instruction from the Minister to COVA to release gasoline, diesel and HVO has already been awarded by COVA to market participants, and deliveries to the market are currently taking place. At the end of July, the Minister had already decided to release the gasoline and diesel portion of the compulsory stocks held by Dutch companies.

These measures form part of the Netherlands’ contribution to the international action to support the oil market. With this third Dutch measure — and the second involving COVA — approximately 87% of the Netherlands’ contribution to the IEA collective action has now been committed.

With both tranches COVA has released approximately 90 kt of gasoline and approximately 100 kt of diesel to the market. Strategic stocks that would normally be held outside the market are thereby being made available to market participants as additional supply.

In addition to these releases, COVA will carry out several other logistical operations involving its stocks from October onwards as part of its normal business operations. These operations are separate from the Netherlands’ contribution to the IEA collective action.

Two of these operations were already contracted before the conflict in the Strait of Hormuz. It may therefore reasonably be assumed that these operations have already been factored into market supply and will not result in additional market tightening. These operations concern:

• Delivery of diesel to COVA at a terminal in Ireland.
• Delivery of gasoline to COVA at a storage cavern in northern Germany.

In addition, COVA is relocating approximately 60 kt of jet fuel from a terminal in the ARA region to a terminal in Ireland. This operation is currently being carried out over a relatively short period, through the end of October. As the volumes withdrawn and delivered are equal, the operation is not expected to cause any market disruption.r. As the volumes withdrawn and delivered are equal, the operation is not expected to cause any market disruption.

COVA has currently no active tenders.