News | July 26, 2021

New fuel agreement with United Kingdom for Scotland fuel storage

By Connie Braesch DLA Energy Public Affairs

Defense Logistics Agency Energy signed a new fuel support agreement with United Kingdom Naval Command Headquarters to improve coordination and contingency operations.

The agreement became effective June 23 establishing reciprocal terms and conditions for the delivery, purchase, and storage of fuel between the military forces and provides for the issue and replenishment of DLA Energy stocks at Naval Command Headquarters Petroleum Depots Loch Striven and Campbeltown, Scotland

“This agreement supports U.S. Naval Forces Europe-Africa requirements in Europe and works in concert with the already established Fuel Exchange Agreement between DLA Energy and the UK Navy,” said Melissa Roth, DLA Energy Bulk Petroleum Supply Chain Services director. “This fuel agreement solidifies DLA Energy’s enduring relationship with the UK Ministry of Defence under the existing Acquisition and Cross-Servicing Agreement.”

This is the first agreement supporting Northern tier storage requirements. It remains in effect for five years with an automatic five-year extension period and allows for revisions as world events evolve. 

“After the U.S. European Command Joint Petroleum Office validated the requirement, DLA Energy International Agreements determined the Royal UK Navy could provide the necessary support,” said Michael Holgate, DLA Energy ACSA Program Manager and International Agreements Division Chief. “Site visits to their facilities indicated the NCHQ Naval Petroleum Depots at Loch Striven and Campbeltown in Scotland would be best suited to provide the support.”  

The agreement is the culmination of several years’ worth of planning and negotiations, which were initiated when Naval Forces Europe identified a requirement to store F76 and JP5 fuel in the UK for contingency operations.  

Dave Lamm, the DLA Energy International Agreements Division Europe and Africa lead negotiator, and Andy Scraggs, UK Royal Navy Logistic Support Division Assistant Chief Naval Staff, negotiated the agreement.  

“This Fuel Support Agreement was built, provision by provision, tailored to the unique capabilities of the foreign partner and distinct requirements of the DLA Energy customers,” Lamm said. “The timeline to complete an FSA is long with negotiations often spanning 2-3 years from start to finish.”

DLA Energy International Agreements, Programs and Analysis team members Michael MacLean and Rey Venus established accounting and reporting systems for fuel transactions to include reporting the international support through the Chairman of the Joint Chief of Staff, to the U.S. Congress by utilizing the Acquisition and Cross-Service Agreement Order Global Automated Tracking and Reporting System.  

This fuel agreement along with ones recently signed with Lithuania, India and Romania bring the total number of DLA Energy fuel agreements with allies around the world to 42.

DLA Energy’s International Fuel Agreements team is responsible for establishing and maintaining long-term Department of Defense fuel agreements with foreign militaries. Synchronized with DLA Energy regional offices, the team focuses on providing a global capability to meet future fuel requirements.