The U.S. Department of Energy (DOE) authorized up to 400,000 barrels from the Strategic Petroleum Reserve (SPR) for Phillips 66’s Lake Charles refinery in Louisiana after a crude-delivery disruption, seeking to bolster regional fuel production.
DOE announced the authorization Oct. 23 and said the crude would come from the West Hackberry site for immediate delivery. The department said the exchange was meant to help keep fuel production steady in Louisiana and nearby areas.
Phillips 66 must return the borrowed crude along with additional premium barrels. DOE said those extra barrels would replenish the reserve without taxpayer cost. The announcement did not specify the final delivery volume, the premium amount or a return deadline.
DOE Under Secretary of Energy Kyle Haustveit said the exchange would help keep refinery operations running and fuel supplies steady. A Phillips 66 spokesperson said the company did not anticipate operational impacts at Lake Charles, according to Reuters and Pipeline & Gas Journal.
DOE did not identify the cause or expected duration of the disruption, or report a change in refinery output. On Oct. 10, it announced separate emergency exchanges of up to 4 million barrels combined for ExxonMobil and BP America amid weather-related supply disruptions in the Gulf.
