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DOE - Fossil Energy Techline - Issued on: August 9, 2007 DOE Awards New Storage Contracts for Northeast Home Heating Oil ReserveWashington, DC - The Department of Energy, through its agent, the Defense Energy Supply Center, has awarded new contracts for storage of heating oil in New York Harbor and New England to Hess Corporation and Morgan Stanley. The total volume of heating oil to be stored will be up to two million barrels. Current contracts expire September 30, 2007. The new contracts will be for one year with options for three one-year extensions. Hess will continue to provide one million barrels of storage for the Department in New York Harbor and will add 250,000 barrels of storage at its terminal in Groton, CT. Morgan Stanley will increase the share of storage provided to the Department in New Haven, CT from 500,000 barrels to 750,000 barrels. 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 ships to bring more heating oil from the Gulf of Mexico. The Department sold 35,000 barrels of the heating oil in June to supplement funding for storage costs. It is anticipated that the 35,000 barrels will be replenished when the Congress appropriates the additional necessary funds. - End of Techline
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