Millions of Gallons of Emergency Diesel Reserves to be Released
November 12, 2012
The U.S. Energy Department recently stated that 4.2 million gallons of diesel would be released to help fuel shortages in Connecticut in the aftermath of Superstorm Sandy.
As part of the government-wide response and recovery effort for the storm, the Energy Department is providing the Department of Defense with additional ultra-low sulfur diesel fuel from the Northeast Home Heating Oil Reserve.
The Energy Department will be loaning diesel fuel to the Defense Logistics Agency, who in turn will provide emergency loans to fuel distributors in Connecticut to address fuel shortages in the state. This is a continuation of the agreement announced a week ago when President Obama declared that Superstorm Sandy has created a severe energy supply interruption and directed the Energy Department to loan the DOD diesel fuel.
"This latest announcement is part of the broader federal effort to respond to those impacted by Hurricane Sandy and the more recent Noreaster storm," said Secretary Chu. "This loan from the Northeast Home Heating Oil Reserve will help ensure communities in the impacted area have access to the diesel fuel they need for their transportation systems."
The state of Connecticut requested this additional release to address fuel shortages that resulted primarily from curtailed supplies from New York Harbor.
The Energy Department is currently planning to release 4.2 million gallons from the heating oil reserve terminal in Groton, Conn. beginning soon. The fuel, which represents roughly five days worth of fuel consumption in Connecticut, will then be provided to fuel distributors in the state and will be repaid in the next 30 days by the distributors directly.
The Energy Department and DLA stand ready to make available additional fuel as needed.