National ticket agreements
This description briefly specifies the rules and procedures that apply when CSO companies enters national ticket agreements. The rules that apply when Danish CSO companies enters national ticket agreements with FDO are also specified.
The rules in their full text appear from Danish Act on Emergency Oil Stockholdings and related executive orders and guidelines. This description has no precedence over the law. All relevant legislation can be found here.
A national stock coverage agreement, also called a ticket, is an agreement between two CSO companies in Denmark or between FDO and a CSO company in Denmark.
As seller of a ticket, the seller commits itself to store a pre-agreed amount of oil products within a pre-agreed product category for a pre-agreed period.
The purpose is that the covered part can fulfill its CSO in relation to the Act on Emergency Oil Stockholdings. On basis of this the covered part can include the amount covered by the ticket agreement to cover its CSO.
A national ticket must have a minimum coverage period of one month, commencing on the first day of the covered month and ending on the last day of the covered month.
Prior to the start of the coverage period FDO must be noticed about the ticket agreement. Otherwise, the ticket is not valid. The notification must be made in OilData.
It is not allowed for a CSO company to sub delegate the coverage that is received from ticket agreements.
If FDO finds that the conditions for a national ticket agreement are not met, the Danish Energy Agency will be notified.
FDO's terms and conditions for ticket agreements can be found here.
Procedure for buy-sell before the beginning of the month:
In some situations FDO are able to offer to sell products in a product category when FDO at the same time is offered a purchase in another product category. Such sales and purchases must be made with the same company as counterpart. FDO cannot offer to sell without a purchase from another product category.
If a CSO company requests a buy-sell, offers relating to such CSO deal must be entered not later than the 15th day of the preceding month. If several offers are received, FDO will sell at the highest price offered, but the selling price may not exceed FDO’s costs. If, within the time limit, several identical quotes have been made, the allocation among the CSO enterprises will be on a pro rata basis. The companies are at all times obligated to sell or buy the volumes for which they have entered an offer.
Procedure for retroactive tickets:
On the 20th day of a month, FDO announces the price for each category. Any objections from the companies must be given within two business days. Not later than two business days after that time-limit, FDO will announce the final price. The prices are announced here.
Any volumes that a company wish to buy or sell must be entered not later than the 4th business day of the following month. Within the subsequent two business days, FDO will state the volume of each category that FDO can buy or sell.
In case of any imbalance between the volumes available, they will be allocated on a pro rata basis among the companies. The companies are at all times obligated to sell or buy the volumes for which they have submitted quotes.
If, after the first allocation, there is an excess of the product offered for ticketing, the companies may, within the following five business days, buy tickets according to the order in which the requests arrive.