
The Department of Energy (DOE) has awarded Strategic Storage Partners LLC a $1.4-billion contract to manage and operate the United States’ Strategic Petroleum Reserve for an extendable five years.
“After a transition period, Strategic Storage Partners, LLC, will assume responsibility for management and operation of the SPR on June 15, 2025”, the DOE said in an online statement.
The federally owned oil stocks are stored in underground salt caverns at four sites in Louisiana and Texas. The DOE said the SPR has run under a series of contracts awarded by the agency since 1985.
“Strategic Storage Partners submitted their proposal in partnership with two primary joint venture partners, Aptim Federal Services, LLC, headquartered in Baton Rouge, Louisiana and BWXT Technical Services Group, Inc., headquartered in Lynchburg, Virginia”, the statement said.
The partnership was selected after a “rigorous competitive selection process”, the DOE said.
The previous contractor was Fluor Federal Petroleum Operations LLC. In 2013 this consortium won a $1.46 billion award to operate the SPR, according to a DOE press release September 18 that year.
The contract was awarded for an initial 5 years, extendable for another 5, the DOE said then. Based on information on government website USAspending.gov, the contract started April 2014 and is expected to end June 2025.
The SPR, mandated by the Energy Policy and Conservation Act to be only used during severe supply disruptions, stood at 396.434 million barrels as of the fourth week of March, according to an online dashboard by the Energy Information Administration.
In November 2024 the DOE made the final awards for a reinjection campaign to compensate withdrawals induced by Russia’s invasion of Ukraine.
The replenishment program exceeded the 2022 sales from the SPR by 20 million barrels, according to the DOE.
Purchases under the refill program were made “at a good deal for taxpayers”, the DOE said, reporting an average buying price of $74.75 per barrel.
Then-President Joe Biden announced March 31, 2022, an SPR withdrawal of one million barrels a day for six months, totaling 180 million barrels. The release aimed to hold down fuel prices amid concerns that Russia’s invasion of Ukraine was disrupting global supply.
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