The U.S. Department of Energy announced on October 21, 2026 a Request for Proposal to exchange up to 315,000 barrels of ultra-low sulfur distillate from the Northeast Home Heating Oil Reserve (NEHHOR). The department says the solicitation is structured to ease supply chain problems that are disrupting fuel oil supply in the region.
How the exchange works
Companies that borrow barrels must return the same volume of fuel oil plus a premium. DOE says that structure means NEHHOR is refilled ahead of the 2027-2028 heating season.
The oil would come 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.
Bid terms
The minimum offer quantity is 25,000 barrels, but not to exceed 30,000. The volume available per site shall not exceed 150,000 barrels. Offerors may submit multiple offers.
Bids are due no later than 11:00 A.M. Central Time on Tuesday, October 27, 2026. DOE says the process is a competitive bid in which both fuel retailers and terminal holders can take part, so product can flow into areas facing fuel shortages.
Wright and the Senate request
Energy Secretary Chris Wright said he directed the exchange after receiving a letter from Senators Collins and King and holding extensive discussions with Senator Collins. He said the aim is to mitigate heightened home heating oil costs during the coming winter.
Wright described the move as temporary. In his words, "this is a temporary measure to solve a temporary supply disruption."
He also urged 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. Wright said that would save residents billions of dollars in home heating and electricity costs.
