DOE Authorizes SPR Crude Release for Phillips 66 Lake Charles Refinery

The agency confirmed the move on Friday without detailing the specific cause of the operational disruption at the 264,000 barrel-per-day facility. Phillips 66 acknowledged the federal support but declined to comment on the nature of the supply bottleneck or its internal commercial activities. The company stated it does not expect the situation to impact ongoing refinery operations.

Under the terms of the exchange, Phillips 66 is required to return the borrowed crude to the reserve along with additional barrels as a premium. This mechanism mirrors the department's recent strategy to manage reserve inventory. Current reserves stand at 282.7 million barrels, the lowest level recorded since October 1982. The department is simultaneously evaluating bids for an additional 57 million barrels to address global supply volatility, though no new loan agreements have been finalized.