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Outages, fire slow Louisiana refinery restarts: Update

  • Mercados: Crude oil, Oil products
  • 28/08/20

Adds detail on Citgo Lake Charles.

A smoldering chemical fire and extensive power outages have slowed the return of western Louisiana refineries from the aftermath of Hurricane Laura.

Power utility Entergy estimates it will take weeks to restore electricity to hundreds of thousands of customers across western Louisiana, where the storm's powerful winds destroyed transmission lines and other infrastructure. A chlorine plant fire near the almost 700,000 b/d of refining capacity near Lake Charles, Louisiana, has meanwhile forced a shelter-in-place that has slowed both refinery assessments and utility repairs.

"Given the intensity of this storm and the additional need for our crews to follow Covid-19 precautionary measures, hardest hit areas may experience outages for weeks," Entergy said today.

Citgo reported wind damage at its 425,000 b/d refinery in Lake Charles, Louisiana. The company, a US refining subsidiary of Venezuelan national oil company PdV, did not comment on the extent of damage or the scope of repair as it continued assessments at its largest refinery. But Citgo said it did not expect a swift restart.

Assessments cannot begin at Phillips 66's 249,000 b/d refinery in Lake Charles until a shelter-in-place order for a nearby chemical fire clears. Emergency officials issued the order as a precaution for a chlorine-products plant fire within a mile of the refinery. The fire was described as "smoldering" late yesterday, but officials extended shelter orders that have slowed the refinery damage assessment and efforts to assess electric utilities in the area.

Assessments and repairs for both facilities will be slowed by roads snarled with debris and as workers take stock of their own repair needs in the wake of the storm.

Refineries across the state border in east Texas meanwhile continued restart work. ExxonMobil's 362,000 b/d Beaumont refinery and Valero's 325,000 b/d Port Arthur refinery both began work today to bring their facilities on line. Total began restart work yesterday at its 240,000 b/d Port Arthur refinery. Motiva began restart work at a nearby chemicals plant but has not commented on plans at its 600,000 b/d Port Arthur refinery, the single largest US facility. It notified Texas environmental regulators of an overwhelmed pump at the site.

Hurricane Laura charged ashore early yesterday morning in western Louisiana with wind speeds of 150mph (240km/h). The powerful storm caused extensive severe wind damage in western Louisiana but largely spared east Texas and did not deliver worst-case flooding that would have further delayed the restart of energy facilities.


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