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DOE lends 1 million bbl of SPR crude to MAP in Isaac's wake

The US Department of Energy lent 1 million bbl of crude oil to Marathon Petroleum Co. (MAP) from the US Strategic Petroleum Reserve to help the refiner recover from Hurricane Isaac disruptions at its 490,000 b/d Garyville, La., refinery.

DOE said on the loan, which differs from a release, was provided on Aug. 31 under short-term contractual agreements in which MAP would return a similar quantity of crude to the SPR, plus premium barrels similar to interest, within 3 months.

MAP on Aug. 31 blamed supply logistics for keeping the Garyville refinery from immediately returning to normal run rates. The refinery did not receive significant storm damage, MAP said.

Separately in other post Isaac news, Phillips 66 Co. reported on Sept. 2 that its 247,000 b/d refinery in Belle Chasse, La., remained closed although most of the floodwater from the storm was cleared.

Most of the plant’s employees have returned to work and are preparing to restart operations once power was restored, executives said. Floodwater reached 2 ft in parts of the refinery, Phillips 66 noted.

Contact Nick Snow at nicks@pennwell.com


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