US Gulf facilities shut ahead of storm: Update

Adds details on facility and port closures, price impact.

Producers are shutting their US Gulf of Mexico oil and natural gas facilities as tropical storm Gordon moves toward the area.

Anadarko has shut its Horn Mountain and Marlin production platforms, and removed all personnel from them.

ExxonMobil has evacuated its Lena platform, but said impact on production is minimal. The major is also carrying out a controlled shut-down of its Mobile Bay facilities. It has activated severe weather preparedness for the Baton Rouge area facilities, but operations there are normal, it said.

Chevron said it has shut production at one of its facilities, without identifying it. Shell has taken measures to secure its assets but is continuing production and all its rigs are also operational.

Preparation-related shutdowns to US Gulf pipeline infrastructure have before caused coastal prices to increase on potential disruption of offshore crude supplies. Coastal crude prices were seen firming in morning trade, as Light Louisiana Sweet (LLS) strengthened to a $6.55/bl premium over WTI, up from the highest premium reported during the prior session on 31 August, at $5.95/bl over WTI. WTI at Houston firmed to a $6.35/bl premium over Cushing, Oklahoma, advancing from $5.75/bl premium over Cushing on 31 August.

The Coast Guard has declared condition Zulu for the ports of Mobile, Alabama, Gulfport and Pascagoula, Mississippi. That condition means the port is closed with all operations suspended. It is set when hurricane-force winds are possible within 12 hours.

The Coast Guard has set port condition Yankee for New Orleans and adjoining areas, meaning possible hurricane-force winds could be seen within 24 hours. During Yankee all affected ports are closed for inbound vessel traffic greater than 500 gross tons.

The National Hurricane Center in its latest update says there is high confidence that Gordon will make landfall along the north-central Gulf coast overnight, along the coasts of Louisiana, Mississippi and Alabama. After landfall, the storm is set to slow considerably, which may result in heavy rainfall.