Maria da Graça Carvalho, Environment and Energy Minister, confirmed the project is expected to take between four and five years to complete. The announcement came as the Government faced criticism over the decision to store part of Portugal’s strategic oil reserves abroad.

As reported by ECO, around 132,000 tonnes of crude oil are currently stored in France, representing less than a tenth of Portugal’s total reserves.

Refinery closure

This move followed the closure of the Matosinhos refinery in 2021, which reduced Portugal’s fuel storage capacity by around a third.

The minister said that the reserves remain Portuguese state property and can be called upon by the Government whenever necessary, rejecting suggestions that Portugal had sent fuel to France for the country’s own use, describing the arrangement instead as the storage of part of the country’s strategic crude oil reserves abroad, a practice she maintained is common in Europe.

She acknowledged that keeping the reserves on Portuguese territory would be preferable but lamented that domestic storage capacity had previously been insufficient.

The Government has now completed a study into expanding that capacity and intends to proceed with the €60 million project.

Energy security

This issue has become politically contentious, with Socialist Party (PS) secretary-general José Luís Carneiro accusing the Government of allowing strategic fuel reserves to be moved out of Portugal.

However, Carvalho accused the PS leader of spreading what she described as false information and creating unnecessary public alarm. She assured that Portugal is meeting its obligations as an EU member state and currently has enough liquid fuel reserves to cover 92 days of consumption, above the recommended 90-day level.

The minister also argued that the reserves held in France do not compromise Portugal’s energy security, as Portugal can use them only after a decision by the Portuguese Government.

Iniciativa Liberal (IL) has separately asked the Government for clarification on the arrangements, including whether there is any risk of a shortage in Portugal’s reserves, questioning how quickly the crude stored in France could be transported back if it were needed during an emergency, and asking what maximum timeframe is established in the storage contract for its release and arrival in Portugal.

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