FBiH adds funding to expand Živinice oil terminal storage, aiming to bolster fuel security

Energy planning in Bosnia and Herzegovina is increasingly focused on how quickly fuel can be stored, accessed and used when markets tighten or transport routes are disrupted. Against that backdrop, the Federation of Bosnia and Herzegovina (FBiH) has moved to keep reconstruction under way at the Živinice oil terminal, approving funds for a further phase intended to strengthen fuel security.

The decision centers on continued work at oil terminal in Živinice, where Federal Energy, Mining and Industry Minister Vedran Lakić signed an agreement with representatives of Operator-Terminali FBiH. The arrangement secures around €250,000 for the project’s next stage.

Second-phase works target storage capacity

According to project plans, the newly allocated money will support the second phase of works aimed at restoring storage infrastructure for both crude oil and petroleum products. Officials said bringing part of the terminal’s capacity back into operational use would reinforce mandatory reserves needed during emergencies.

Beyond reserve coverage, authorities also highlighted a commercial function: restoring usable storage could allow space to be leased to fuel distributors. That mechanism is expected to contribute to a steadier market supply by improving access points for inventories.

Reconstruction framed as broader infrastructure modernization

Lakić described the Živinice rehabilitation as one element within a wider program to rebuild and modernize energy infrastructure across the Federation. He noted that it is among several priority investments, while also confirming that government efforts will continue beyond Živinice through upgrades of oil storage facilities in other parts of FBiH.

The minister additionally pointed toward future development plans involving terminal infrastructure in Mostar—positioned as part of an overarching strategy meant to enhance fuel security. In his view, the objective extends beyond repairing existing assets toward building a more reliable and modern energy system capable of supporting long-term stability.

Why reserve capacity matters amid volatility

The investment was also presented as a matter of institutional responsibility rather than abstract policy. Lakić argued that strengthening fuel storage improves FBiH’s ability to absorb supply shocks and sustain continuity during periods when markets are disrupted or crises emerge.

Operator-Terminali FBiH said the project has particular relevance given current international conditions marked by commodity-market volatility and disruptions affecting transport routes. The company stressed that reserve capacity and domestic storage are essential components of any credible energy-security framework, because they reduce exposure when external flows become uncertain.

The operator further said that Živinice holds special importance for Tuzla and Bosnia and Herzegovina’s northern region. In that context, improved logistics paired with greater reserve capacity could directly support market stability.

Management also referenced policy momentum reflected in recent developments at other facilities, saying the reopening of the Blažuj terminal underscores how oil storage is becoming a more central element of government energy priorities.