Energy Dept. Boosts Northeast Fuel Reserves

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Energy Dept. Boosts Northeast Fuel Reserves

05/05/2014

WASHINGTON, D.C. -- The U.S. Government is hoping to be better prepared if another Superstorm Sandy batters the Northeast in the future. Energy Secretary Ernest Moniz announced the creation of the first federal regional refined petroleum product reserve containing gasoline.

The Department of Energy will create two Northeast fuel reserve locations, one near New York Harbor and another in New England. Each reserve location will store 500,000 barrels of gasoline, which Moniz said will provide short-term relief in the event of a fuel disruption.

“In addition to our mitigation and international efforts, the President’s Climate Action Plan calls on us to take measures today in order to better prepare for the effects of climate change we already see occurring here at home,” said Moniz. “Building on lessons learned from recent extreme weather events like Superstorm Sandy, today we are announcing the establishment of a refined petroleum product reserve for the region surrounding New York Harbor and the Northern New England area to help ease the effects of potential future gasoline supply disruptions.

The Department of Energy anticipates awarding contracts for commercial storage, service and product acquisition in order to launch the reserve by the late summer.

“The sudden, massive gas supply shortage after Superstom Sandy resulted in interminable lines, panic and delivered a gut shot to the region's economy. That's why we called for regionally-placed reserves to ensure an uninterrupted fuel supply in the event of future storms like Sandy,” said Senator Charles E. Schumer (D-N.Y.). “The Department of Energy, with foresight and purpose, has taken a great stride to meet that challenge today, and I applaud their plan to establish a Northeast refined petroleum reserve right here in New York Harbor.”

The Department of Energy previously announced the creation of the Northeast Home Heating Oil Reserve, a one-million barrel supply of diesel in the Northeast to heat homes.