The Department of Energy on Friday said it is releasing up to 400,000 bbl of crude from the Strategic Petroleum Reserve to help deal with an oil supply disruption affecting the Phillips 66 Lake Charles Refinery in Louisiana.
The department's announcement did not specify the nature of the disruption at the 264,000 b/d refinery.
"The supply will help offset temporary disruptions affecting crude oil deliveries to the refinery and support continued production of transportation fuels serving Louisiana and surrounding markets," the announcement said.
In a statement, Phillips 66 said it would not comment on refinery operations or commercial activity, but it did confirm the company will receive crude from the reserve.
"We do not anticipate impacts to Lake Charles operations," the company statement said.
The DOE announcement said the department had authorized release of the oil as an exchange, meaning Phillips will have to return the same amount of oil it receives, along with additional barrels as a premium for the loan.
That is the same type of arrangement the department has been using in its most recent program of releases from the reserve. DOE data this week showed supplies in the reserve now total 282.7 million bbl, the lowest levels since October 1982.
In recent weeks, the department has solicited bids for the loan of an additional 57 million bbl from the reserve, part of the Trump administration's efforts to deal with disruptions to global crude supply due the fighting in Iran.
So far, the department has not announced any agreements to release oil under the latest solicitations.
Comments