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DOE Completes Sale of Northeast Home Heating Oil Stocks

February 10, 2011 - 12:00pm

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Washington, DC - The U.S. Department of Energy (DOE) today has awarded contracts to four companies who successfully bid for the purchase of 1,000,000 barrels of heating oil from the Northeast Home Heating Oil Reserve storage sites in Groton and New Haven, CT.

Hess Groton Terminal, Groton, CT

Shell Trading U.S. Company 150,000 barrels
Sprague Energy Corp. 100,000 barrels

 

Magellan New Haven Terminal, New Haven, CT

Hess Corporation 300,000 barrels
Morgan Stanley 450,000 barrels

 

Today’s sale was the second held as part of the Department’s initiative to convert the 1,984,253 barrel heating oil reserve to cleaner burning ultra low sulfur distillate. The first sale, held on February 3, 2011, resulted in the sale of 984,253 barrels.

Contracts for the heating oil will be executed upon final payment to DOE; final payment is required no later than 5:00 p.m., EST, February 14, 2011. Purchasers must take delivery of the heating oil no later than March 31, 2011.

Execution of the contracts and delivery of the heating oil to purchasers will complete DOE’s sales goal for the Northeast Home Heating Oil Reserve. Receipts will be used to purchase ultra low sulfur distillate for the Reserve during Summer 2011.

DOE will receive approximately $114 million from today’s awards.

A summary of the awards for the heating oil sale is posted here.

 

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