WASHINGTON— The U.S. Department of Energy today announced a Request for Proposal for an exchange of up to 315,000 barrels of ultra-low sulfur distillate (fuel oil) from the Northeast Home Heating Oil Reserve (NEHHOR). This solicitation is structured to mitigate supply chain challenges disrupting fuel oil supply. The announced exchange underscores the Trump Administration’s commitment to reliable energy access and lowering costs. Under the terms of the exchange, borrowing companies must return the same volume of fuel oil plus a premium, ensuring that NEHHOR is refilled ahead of the 2027–2028 heating season.
“The Trump Administration is committed to doing everything in our power to lower energy costs for the American people,” said U.S. Secretary of Energy Chris Wright. “After receiving Senators Collins’ and Kings’ letter and extensive discussions with Senator Collins, I have directed the Department to exchange barrels from our Northeast Home Heating Oil Reserve to mitigate heightened home heating oil costs during the upcoming winter. Of course, this is a temporary measure to solve a temporary supply disruption. I encourage the governors of New York and New England to work with the Trump Administration to build the Constitution Pipeline and replace home heating oil with low-cost natural gas. Doing so would save their residents billions of dollars in home heating and electricity costs.”
DOE will exchange up to 315,000 barrels of fuel oil from NEHHOR storage sites in South Portland, Maine; Boston, Massachusetts; and New Haven, Connecticut. Fuel transfers or deliveries are scheduled to be completed by November 13, 2026.
The minimum offer quantity is 25,000 barrels, but not to exceed 30,000, and the volume available per site shall not exceed 150,000. Offerors may submit multiple offers. This approach ensures a competitive bidding process in which both fuel retailers and terminal holders can participate and that product can flow into areas facing fuel shortages.
Bids for the solicitation are due no later than 11:00 A.M. Central Time on Tuesday, October 27, 2026.
For more information on NEHHOR, please visit the NEHHOR website.
