DOE seeks bids to exchange up to 315,000 barrels of Northeast heating oil

WASHINGTON, Oct 21 — The U.S. Department of Energy (DOE) on Oct 21 announced a request for proposal for an exchange of up to 315,000 barrels of ultra-low sulfur distillate from the Northeast Home Heating Oil Reserve (NEHHOR), saying the solicitation is structured to mitigate supply chain challenges disrupting fuel oil supply.

Borrowing companies must return the same volume of fuel oil plus a premium, which the department said ensures the reserve is refilled ahead of the 2027–2028 heating season. The fuel will come from storage sites in South Portland, Maine; Boston, Massachusetts; and New Haven, Connecticut. The minimum offer is 25,000 barrels, not to exceed 30,000, and no more than 150,000 barrels are available per site.

"Of course, this is a temporary measure to solve a temporary supply disruption," Secretary of Energy Chris Wright said. Bids are due no later than 11:00 A.M. Central Time on Tuesday, Oct 27, and transfers or deliveries are scheduled to be completed by Nov 13, according to DOE.