MOSCOW (MRC) -- More than 90% of crude oil production in the US Gulf of Mexico went offline in advance of Hurricane Delta as LNG plants and refineries shuttered or hunkered down in advance of the storm's anticipated landfall on Oct. 9 in southwestern Louisiana, reported S&P Global.
Delta is targeting the same area already devastated by Hurricane Laura in late August, so the major refineries near Lake Charles, Louisiana remained closed. However, US Gulf Coast LNG producers were shutting down or making emergency preparations on Oct. 8 ahead of Delta now that most of the Gulf's oil and gas flows have already come offline.
More than 1.69 million b/d of US Gulf of Mexico crude production and 1.675 Bcf/d of natural gas output were shut in Oct. 8, 91.53% and 61.82% of total offshore output, respectively, according to the US Bureau of Safety and Environmental Enforcement. BSEE said 279 of the Gulf's platforms and rigs were evacuated, almost 45% of the Gulf's operating facilities offshore.
The offshore Gulf of Mexico is home to roughly 1.9 million b/d of crude production capacity, according to the US Energy Information Administration.
Sempra Energy's Cameron LNG plant in southwestern Louisiana is again shuttering after recently shipping its first cargoes since August, when the facility was previously shut down from Laura, the company said Oct. 8.
However, Cheniere Energy's Sabine Pass LNG facility and Freeport LNG in Texas said they are activating emergency response plans, but maintaining operations for now.
"We will staff Sabine Pass with a limited ride-out crew to safely manage operations and will provide updates as appropriate following the storm," Cheniere spokeswoman Jenna Palfrey said on Oct. 8.
Delta is forecast to strengthen into a major Category 3 hurricane and then weaken back into a still-powerful Category 2 storm before landfall. A bevy of tropical storms and hurricanes have disrupted oil and gas operations in the Gulf this year for what could end up as the most active Atlantic storm season in recorded history, potentially surpassing the record-setting season in 2005.
Shell, BP and Chevron said they took the extra steps of shutting in production at all of their operated Gulf platforms and facilities.
"As a precautionary measure, Shell has shut in production at all nine of its assets and has evacuated all personnel," Shell said in an Oct. 8 statement. "All drilling operations have been safely paused."
Shell also said it will closely track potential impacts at its Louisiana refineries in Convent and Norco, and its chemicals plant in Geismar.
BP said Oct. 6 it would shut in production and evacuate all four of its offshore platforms: Thunder Horse, Atlantis, Mad Dog and Na Kika. Likewise, Chevron shut in production and evacuated crews from all of its Gulf platforms.
ExxonMobil said it evacuated its Hoover platform in the Gulf, but that its Baton Rouge refining complex is continuing to operate.
Crude exports from Louisiana are feeling the impact as well. A LOOP spokesperson said Oct. 7 that the offshore port's marine terminal had suspended operations in advance of the storm.
Kinder Morgan's NGPL pipeline system made a force majeure declaration on Oct. 8 because of the advancing storm, and the connected Sabine Pass LNG plant saw its feedgas nominations fall by about 500 Mmcf to 3.078 Bcf/d on the same day because of the pipeline closure.
Hurricane Delta's projected path previously shifted west away from New Orleans and toward Lake Charles, Louisiana, meaning fewer refineries are currently in the direct path of the storm. Still, a combined 2.4 million b/d of operating capacity is in the path of Delta in Texas and Louisiana.
Area refiners have yet to report any shutdowns, but there is still time ahead of the storm's landfall to do so if necessary.
Roughly 813,500 b/d of capacity in the path of the storm remains offline from previous hurricanes, including the Phillips 66 and Citgo Petroleum refineries near Lake Charles.
Hurricane season extends through the end of November.
As MRC informed earlier, hurricane Delta is on track to reach the US Gulf Coast (USGC) between High Island, Texas, northeast of Houston, and Grand Isle, Louisiana, south of New Orleans, Friday. Located north of Mexico’s Yucatan Peninsula Wednesday afternoon, the storm is forecast to strengthen as it heads north toward the heart of the US petrochemical industry.
We remind that strengthening hurricane Delta forced the closure of 29.2% of offshore crude oil production in the US-regulated northern Gulf of Mexico by midday Tuesday, regulator US Bureau of Safety and Environmental Enforcement (BSEE).
Ethylene and propylene are feedstocks for producing PE and polypropylene (PP).
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