DOE Announces Award of a Contract to Repurchase Heating Oil for the Northeast Home Heating Oil Reserve

Washington, D.C. – The U.S. Department of Energy today announced the award of a contract to Hess Corporation for the delivery of 808,625 gallons (approximately 19,250 barrels) of home heating oil for the Northeast Home Heating Oil Reserve (NEHHOR). The purchased oil is expected to be delivered to the Hess First Reserve terminal at Perth Amboy, NJ in New York Harbor later this week.

MORE INFO Read the June 23, 2008 Techline Read the June 15, 2007 Techline

The award resulted from a solicitation issued on June 23, 2008, to repurchase heating oil using $3 million in funds appropriated after the sale of 35,000 barrels from the Reserve in June 2007. The 2007 sale was conducted to raise funds necessary to award new long-term storage contracts to maintain the Reserve at its authorized capacity of two million barrels of oil in accordance with the Energy Policy Act of 2000.

The Northeast Home Heating Oil Reserve was established by the Energy Act of 2000 to provide a short-term supplement to Northeast heating oil supplies in the event of an actual or imminent severe energy supply disruption. Two million barrels was determined to be a sufficient size to provide relief from a shortfall for approximately 10 days - the time it would take for replenishment supplies to arrive.

The Northeast Home Heating Oil Reserve currently holds 1,965,000 barrels located in three locations in the Northeast.

- End of Techline

For more information, contact: Mike Jacobs, FE Office of Communications, 202-586-0507 Angela Hill, DOE Office of Public Affairs, 202-586-4940