Louisiana refineries slammed by Hurricane Ida

More than 800,000 b/d of US Gulf coast refining capacity is offline today as Hurricane Ida swept ashore in Louisiana.

The storm brought 150mph (240km/h) winds and nine-foot storm surge to areas near New Orleans, coastal Louisiana and stretches of the Mississippi River, home to nearly 1mn b/d of refining capacity, key facilities for offshore oil and gas support work, as well as ports and docks that handle a wide range of other commodities.

Most refinery operators with facilities in the storm's path said they shut down ahead of its arrival, but the extent of damage and potential re-start times may not be known for several days.

Valero's 215,000 b/d St Charles, Louisiana, refinery and 135,000 b/d Meraux refinery were both shut as the hurricane made landfall, the company said. ExxonMobil's 500,000 b/d Baton Rouge facility — located west of where the heaviest winds and rain are expected — also shut "some units and equipment." Exxon said it continued to meet contractual commitments at the site and that it was maintaining service at the Baton Rouge fuel terminal, servicing fuel distributors throughout southeast Louisiana.

Phillips 66's 250,000 b/d Alliance refinery in Belle Chasse and Shell's 225,000 b/d refinery in Norco began shutdown operations on 27 August in preparation for the storm.

Nearly 700,000 customers in Louisiana were without power as evening fell and winds battered power lines, according to local power utility Entergy. Category 4 hurricanes such as Ida can cause power outages that may take up to three weeks to restore, the company said. The company was bringing in workers from other parts of its service region, which stretches from east Texas to Oklahoma, to begin work on lines once the storm passes.

The storm comes as US peak summer gasoline demand begins to wane. US gasoline demand was up by 3pc to 9.6mn b/d on the week ended 23 August, and was up 4pc from year-earlier levels. US diesel demand was down by 5pc to 4.1mn b/d in the same week, a 4pc gain from the same time in 2020.

More than 45pc of US refining capacity is located along the Gulf coast.

By Dylan Chase