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Louisiana refinery restart timelines become clearer

  • Market: Crude oil, Oil products
  • 03/09/21

Power should be restored to most parishes around Baton Rouge, Louisiana, and several near New Orleans by the middle of next week, providing some guidance for refineries' ability to restart following Hurricane Ida.

Regional utility Entergy said it expects power to be back online in the Port Allen and Zachary areas around Baton Rouge by the end of today, as it delivered preliminary estimated restoration times to parishes for the first time since Hurricane Ida made landfall on 29 August.

Chalmette, home to PBF Energy's 190,000 b/d refinery, and parts of Plaquemines Parish, home to Phillips 66's 250,000 b/d Alliance refinery, should have power restored by 7 September, according to Entergy.

No timeline was given for when power will be restored in St Charles Parish, where Shell's 250,000 b/d Norco refinery and Valero's 215,000 b/d St Charles refinery sit, nor for St John the Baptist Parish, where Marathon Petroleum's has its 565,000 b/d Garyville refinery.

The Shell Norco site, Marathon Garyville and the up-for-sale Phillips 66 Alliance refinery have all confirmed damage from the Category 4 storm. It is possible that several other refiners saw assets damaged in the southeast Louisiana region.

Valero has yet to update the status of its 125,000 b/d Meraux refinery and 190,000 b/d St Charles refinery.

ExxonMobil's 520,000 b/d refinery in Baton Rouge is restarting but has had trouble accessing crude feedstocks in part because of barge traffic restriction still in effect on parts of the Mississippi River. The refinery will receive a loan of 1.5mn bls of crude from the US Strategic Petroleum Reserve to circumvent the logistical hurdles left from Ida's fallout, through a deal announced yesterday. The oil will be drawn from the SPR Bayou Choctaw site near Baton Rouge, and can begin within 72 hours from when US energy secretary Jennifer Granholm signs an authorization, the Energy Department told Argus.

Remnants of Ida created havoc elsewhere in the US this week, including massive rainfall in New York and New Jersey that led to flooding. Phillips 66 said it lost power at two product terminals in New Jersey from the storms. The 1.701mn bl Tremley Point Terminal resumed operations yesterday morning, but the company was still in process of restarting operations at its 360,000 bl Linden terminal. NuStar Energy said its 4.59mn bl Linden terminal restarted last night.

US Gulf coast refinery status, post-Hurricane Ida
NameCapacity b/dStatus as of AM, 3 Sep
Marathon Garyville565,000Shut, unspecified damage
ExxonMobil Baton Rouge500,000Restarting
Citgo Lake Charles425,000Normal
Phillips 66 Alliance250,000Shut, unspecified damage
Shell Norco250,000Shut, unspecified damage
Valero St Charles215,000Shut
PBF Chalmette190,000Shut, limited power restored
Valero Meraux135,000Shut
Delek Krotz Springs80,000Unknown
Placid Port Allen75,000Normal
Calcasieu Refining136,000Normal
Chevron Pascagoula356,000Normal
Phillips 66 Lake Charles264,000Normal

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