DoE Announces Plan to Sell Crude Oil From Strategic Petroleum Reserve
The deadline for bids is 2 p.m. Central Time on March 13.
OILMONSTER.COM- The U.S. Department of Energy has announced plans to sell up to 6 million barrels (Mmbbl) of crude oil from the Strategic Petroleum Reserve (Spr), Kallanish Energy reports.
The department’s Office of Fossil Energy last week said it will draw down and sell crude from three sites in Texas and Louisiana.
The proposed sales, mandated by Congress, will be drawn from Bryan Mound and Big Hill in Texas and West Hackberry in Louisiana. The sales will include up to 3 Mmbbl from Bryan Mound and up to 1.5 Mmbbl each from Big Hill and West Hackberry.
The deadline for bids is 2 p.m. Central Time on March 13. Contracts will be awarded no later than March 15. Deliveries will take place in April and May. Companies must be registered with the Doe to submit bids.
The sale will fulfil requirements for Section 404 of the Bipartisan Budget Act of 2015 (Public Law 114-74). That law authorizes the Secretary of Energy to draw down and sell up to $2 billion of Spr crude oil in fiscal years 2017 through 2020 to carry out a Spr modernization program.
In FY 2019, the secretary is authorized to sell up to $300 million of crude oil from the Spr to fund the reserve’s modernization.
Courtesy: www.kallanishenergy.com
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