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US Gulf Coast refiners plan to operate through Storm Zeta

October 29/2020

MOSCOW (MRC) -- At least five Louisiana oil refineries in the path of Tropical Storm Zeta plan to remain operating as it makes a US landfall, reported Reuters with reference to people familiar with plant operations.

Oil and gas producers evacuated offshore production platforms and shut wells as the storm moved across the Gulf of Mexico. Zeta could strike the Gulf Coast between Louisiana and Alabama at or near hurricane intensity, forecasters said.

Refiners plans to continue operations could depend on the storms path and whether its winds intensify, the sources said. Two Louisiana plants have not restarted after storms earlier this year.

Exxon Mobil Corps 517,700 barrel-per-day (bpd) Baton Rouge, refinery, Royal Dutch Shell Plcs 227,400 bpd Norco and 211,146 bpd Convent, Louisiana, refineries are proceeding with normal operations.

Exxons Baton Rouge plant is about 110 miles (177 km) northwest of the forecast path while Shells Convent and Norco refineries are 78 miles and 54 miles northwest of the latest storm track.

Exxon and Shell are monitoring the storm, spokes people said. Shell also said it is prepared to take action as appropriate.

PBF Energys 190,000 bpd Chalmette, refinery and Valero Energy Corps 125,000 bpd Meraux refinery, both in Louisiana, also plan to remain running during the storm, people familiar with operations at those plants said.

PBF and Valero did not respond to requests for comment.

The PBF refinery is about 36 miles and the Valero refinery about 34 miles northwest of where Zeta is forecast to cross the Mississippi River.

Enbridge Inc shut a natural gas processing plant in Venice, Louisiana, on the wet side of the hurricane, which likely will see the most rain and wind.

The refinery nearest to where Zeta could strike the coast, Phillips 66s 255,600 bpd Alliance, Louisiana, refinery, has been shut since September for maintenance.

As MRC informed before, last month, US refiner Phillips 66 said it plans to reconfigure its refinery in Rodeo, California to produce renewable fuels from used cooking oil, fats, greases and soybean oils.

We remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

Ethylene and propylene are feedstocks for producing PE and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
Author:Margaret Volkova
Tags:PP, PE, LLDPE, crude and gaz condensate, PP random copolymer, propylene, copolymer, ethylene, petrochemistry, Chevron, Chevron Phillips, Exxon Mobil, Phillips 66, Shell, Valero, USA.
Category:General News
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