Ireland is expected to move all its oil reserves out of the UK as it steps up its preparations for Brexit
Ireland is expected to move all its oil reserves out of the UK as it steps up its preparations for Brexit.
In one of the most significant Brexit decisions for Ireland so far, Ireland will transfer the nearly 200,000 tons of oil out of British refineries and back into Ireland or other EU member states, as the UK is preparing to leave the European Union bloc. It has been reported that the oil would be moved out of the UK â€œfor national security reasons.â€
A senior Irish government source said that it pays for storage there so that will have serious implications for UK refineries who have stored its oil for almost two decades.
Ireland has 1.5 million tons of oil reserves. Some 500,000 tons of those reserves are stored in other countries, including the UK, the Netherlands, Denmark, and Spain. The remaining 1 million tons are held at ports along Irelandâ€™s coasts.
Under the EUâ€™s Oil Stocks Directive, EU countries must keep emergency stocks of crude oil and/or petroleum products equal to at least 90 days of net imports or 61 days of consumption, whichever is higher.
Ireland has two options for taking the oil out of the UK. According to reports, one of its options for moving the oil reserves out of the UK could be physically moving the oil via tankers. An alternative is also being consideredâ€”to make trade deals in which the ownership of UK oil in other EU member state is transferred to Ireland, without the need to physically move the oil.
While it is studying where to keep its oil reserves after Brexit, Ireland could become the first country in the world to quit fossil fuel investments completely, after the Fossil Fuel Divestment bill was passed by the countryâ€™s lower house, the DÃ¡il Ã‰ireann, last week.