U.S. loans 300,000 bbls of SPR oil to Placid Refining

Placid will have to return the oil to the reserve at a later date with interest

  
Image used for illustrative purpose. A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016.

Image used for illustrative purpose. A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016.

REUTERS/Richard Carson

WASHINGTON - The U.S. Energy Department said on Friday it authorized an exchange of 300,000 barrels of crude oil from the Strategic Petroleum Reserve to help Louisiana, still suffering in the wake of Hurricane Ida, cope with fuel supplies.

The Department authorized the SPR to conduct an exchange of 300,000 barrels of crude oil from the Bayou Choctaw storage site to Placid Refining Company LLC's refinery near Baton Rouge, Louisiana, the Energy Department said in a statement.

Placid will have to return the oil to the reserve at a later date with interest, usually paid in oil.

It was the second exchange since Hurricane Ida pounded Louisiana on Sunday leaving four large refineries in the state shut.

President Joe Biden, seeking to ease worries about regional fuel shortages, authorized the department on Thursday to loan 1.5 million barrels of crude to Exxon Mobil's Baton Rouge refinery to produce gasoline.

(Reporting by Doina Chiacu and Timothy Gardner; Editing by Chris Reese and Sandra Maler) ((doina.chiacu@thomsonreuters.com; + 1 202-898-8322;))


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