DOE Announces Award of a Contract to Repurchase Heating Oil

Tag : Heating Supplies

The U.S. Department of Energy today announced the award of acontract to Hess Corporation for the delivery of approximately808,625 gallons (approximately 19,250 barrels) of home heating oilfor the Northeast Home Heating Oil Reserve (NEHHOR). The purchasedoil is expected to be delivered to the Hess First Reserve terminalat Perth Amboy, NJ in New York Harbor later this week.
The award resulted from a solicitation issued on June 23, 2008, torepurchase heating oil using $3 million in funds appropriated afterthe sale of 35,000 barrels from the Reserve oil in June 2007. The2007 sale was conducted to raise funds necessary to award newlong-term storage contracts to maintain the Reserve at itsauthorized capacity of two million barrels oil in accordance withthe Energy Policy Act of 2000.
The Northeast Home Heating Oil Reserve was established by theEnergy Act of 2000 to provide a short-term supplement to Northeastheating oil supplies in the event of an actual or imminent severeenergy supply disruption. Two million barrels was determined to bea sufficient size to provide relief from a shortfall forapproximately 10 days, the time it would take for replenishmentsupplies to arrive.
The Northeast Home Heating Oil Reserve currently holds 1,965,000barrels located in three locations in the Northeast.