The U.S. Department of Energy has issued a tender to buy as much as 6 MMbbl of crude to restock its Strategic Petroleum Reserve site in Bayou Choctaw, Louisiana.
The supplies are for delivery during February through May next year, with 1.5 MMbbl earmarked for supply each month. Offers are due no later than 11 am CT, September 25.
The purchases are part of a program to refill the DOE’s four SPR sites - two each in Louisiana and Texas - after a massive 180 MMbbl emergency draw down in 2022 to offset oil price rallies triggered by Russia’s war.
The government’s buyback plan has recovered over 50 MMbbl. For its purchases, the DOE continues to aim for $79/bbl or less, significantly lower than the average of about $95/bbl it received for 2022 emergency SPR sales.
