Today, the the U.S. and Australia finalized an SPR lease agreement on energy storage.
June 3, 2020
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WASHINGTON, D.C. – Today, U.S. Secretary of Energy Dan Brouillette and Australia’s Minister of Energy and Emissions Reduction Angus Taylor participated in a virtual signing ceremony finalizing the U.S.-Australia SPR Lease Agreement. This lease agreement builds on the arrangement signed in March that allows any Australian stocks held in the SPR to be counted toward Australia’s compliance obligations with the International Energy Agency (IEA).
This historic Agreement will allow Australia to lease space in the U.S. Strategic Petroleum Reserve (SPR) to store Australian-owned oil and access this oil during an emergency, such as declared by the IEA or Australia for a domestic supply shortage. The Agreement stems from discussions between President Donald J. Trump and Prime Minister Scott Morrison in Washington in September 2019, and will strengthen international energy security and resiliency. This is the first time the United States has leased excess capacity in the SPR to another country.
Both Ministers acknowledged the change in the energy landscape over the past few months, and how the COVID-19 pandemic has reiterated the importance of energy security and the strong U.S.-Australia relationship.
Today’s Agreement will deepen that relationship, advance the strategic interests of both nations, and strengthen global energy stability. It will also allow Australia to make progress on their sovereign energy goals and benefit from current low oil prices.
Secretary Brouillette and Minister Taylor stated this Agreement is a lasting sign of the U.S.-Australia partnership in energy security through both times of crises and times of prosperity, and look forward to bolstering this cooperation for years to come.