The decision regarding the establishment of the Company includes the obligation of the Company to ensure, in accordance with the law, the work conditions and uninterrupted transport system, security, regular maintenance, development and technical and technological integration into unified crude oil and petroleum products pipeline transport system in the Republic of Serbia, so as the measures that will contribute to linking these systems with other countries' crude oil and petroleum products transport systems.

In conditions of high energy dependence, it is important to ensure the stabile supply of crude oil and petroleum products. Crude oil and petroleum products storage activities have a significant role in nowadays economic conditions and energy demands. Storage of mandatory reserves of crude oil and petroleum products is regulated by EU directives that member states must incorporate into national legislation in order to ensure secure supply of petroleum products.

Bearing in mind the need for harmonization of legislation of the Republic of Serbia with the European legislation, and hence the need for regulation of the crude oil and petroleum products mandatory reserves system, the Company plans to provide the crude oil and petroleum products commercial storage service on its own storage installations, so as to develop storage capacities for crude oil and petroleum products mandatory reserves, based on long-term cooperation with a legal entity that will perform the tasks of creation, preservation and maintenance of mandatory reserves for the state. For that purpose, Transnafta has established cooperation with the Army of the Republic of Serbia on the joint use of reservoirs and storage capacities owned by the Army of the Republic of Serbia.

New legislation shall define terms and mode of formation, preservation, maintenance and monitoring of crude oil and petroleum products mandatory reserves, so as the way of establishing the necessary structures for mandatory reserves. In accordance with the mandatory reserves established structure, and in order to ensure the availability of crude oil to refineries and motor fuels to customers, it is expected that storage space is next to the existing pipeline for crude oil reserves and next to the planned motor fuels pipeline.