Abraham Approves Relocating Portion of Heating Oil Reserve to Rhode Island

Action Expands Capabilities of Government's to Distribute Fuel to Northeast Consumers

Providence, RI - Secretary of Energy Spencer Abraham has approved relocating 150,000 barrels of the government's two million-barrel Northeast Home Heating Oil Reserve to Providence, RI, with an option to expand the Providence inventory to 250,000 barrels in the future. He made the announcement with Rhode Island Governor Lincoln Almond at the National Governor's Association meeting in Providence today.

The Energy Department and Equiva Trading Co., one of the firms under contract to store emergency heating oil for the government, concluded the transfer agreement last week. The heating oil is expected to be in place at Providence by September.

"Stockpiling a portion of our heating oil inventory in Providence gives us a third geographic location from which we can distribute fuel to homeowners and businesses in the event of a supply shortage this winter," Abraham said. "Providence is especially advantageous because it extends our distribution capabilities into the Boston area and gives us additional truck and marine loading options."

President Bush's National Energy Policy has endorsed the Heating Oil Reserve as an "emergency buffer" that can supplement commercial fuel supplies should the Northeast be hit by a severe heating oil supply disruption.

The government set up the reserve last fall by contracting with private companies to stockpile heating oil at commercial terminals in New Haven, CT, and Woodbridge, NJ (in the New York Harbor area). The 150,000 barrels to be transferred will come from the 500,000 barrels now stored in Equiva's Motiva terminal in New Haven.

The Reserve also holds 500,000 barrels at Williams Energy Services' terminal at New Haven, and one million barrels at Amerada Hess' terminal in Woodbridge.

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