Hurricane Laura slams Louisiana coast as cat 4 storm

Industries from Beaumont, Texas, to Lake Charles, Louisiana, will begin assessing damage this morning from Hurricane Laura, the most powerful hurricane on record to hit the region.

The storm came ashore near Cameron, Louisiana, about 35 miles (56km) east of the Texas-Louisiana border at about 2am ET this morning as a category four storm, bringing 20-foot (6m) tidal surges and 150 mph (241 km/h) winds. More than a half-million residents of coastal counties and parishes fled ahead of the storm, while more than 10pc of US refining capacity was taken off line in preparation.

Energy industry facilities most at risk from the storm include up to 2.2mn b/d of refining capacity near Lake Charles and the Beaumont- Port Arthur area, as well as ports and terminals responsible for 20pc of US crude exports this year. Sempra Energy's Cameron LNG terminal and Cheniere Energy's Sabine Pass LNG terminal were also in harm's way, as well as countless petrochemical sites, terminals, ports and businesses that support the Gulf coast energy complex.

In addition to damaging winds, high waters may threaten to swamp many facilities. The National Hurricane Center predicted 15-20 feet of water may have pushed in at Calcasieu Lake, south of Lake Charles, and 10-15 feet of water at Sabine Lake south of Port Arthur and Beaumont.

About 84pc of of US Gulf of Mexico crude production — or 1.6mn b/d — has been shut in since 25 August, according to the US Bureau of Safety and Environmental Enforcement (BSEE). Laura was preceded by tropical storm Marco, which came ashore nearby in central Louisiana before breaking apart.

The shut-in production helped lift trade volumes for Heavy Louisiana Sweet (HLS) crude for October to the highest daily total in 15 years yesterday, the first day of the trade month.

The track Hurricane Laura followed was similar to one taken by Hurricane Rita in 2005, which led to an estimated $18bn in damages and more than 120 fatalities. Laura's route spared Houston, Texas — the fourth-largest city in the US and home to the single largest cluster of refineries and petrochemical plants in the country.