By Arathy Somasekhar, Erwin Seba and Marianna Parraga
HOUSTON, July 9 (Reuters) - Oil and gas companies in
Texas were restarting operations on Tuesday after Hurricane
Beryl lashed the state with 80-mph winds, even as some
facilities sustained damages and power had not been fully
restored.
Beryl made landfall early on Monday near the coastal town of
Matagorda. Energy firms shut operations ahead of its arrival and
Texas' largest ports and navigation channels closed. However,
its impact on oil and gas production is expected to be minor.
On Tuesday, some ports had reopened, and most producers and
facilities were ramping up output after preventively cutting
down processing. Some were limited by the slow restoration of
power to homes, businesses and industrial customers.
About 2.28 million customers remained without power in
Texas and 30,000 more in Louisiana and Arkansas early on
Tuesday, according to PowerOutage.us, including some 1.78
million served by provider CenterPoint Energy ( CNP ).
The figure was more than double the number of customers that
lost power in May when a weather event bringing strong winds hit
Houston. It took more than a week for those outages to be
resolved in some city neighborhoods.
CenterPoint said on Monday that it expects to have 1 million
impacted customers restored by the end of Wednesday.
Houston was expected to be sunny with temperatures in the
high 90 degrees Fahrenheit (32.2°C), causing worries as power
outages knocked out air conditioning. The Heat Index in
southeast Texas could reach as high as 106 degrees Fahrenheit,
according to the National Weather Service.
Beryl lost strength quickly upon making landfall and by
Tuesday morning had been downgraded to a post-tropical cyclone,
the U.S. National Hurricane Center said. It warned that flash
flooding and a risk of tornados remained possible from
mid-Mississippi to Lower Ohio Valley on Tuesday.
TEXAS FLOODING EASING
Texas is the largest U.S. oil and gas producing state,
accounting for some 40% of oil and 20% of gas output, and is
also a major shipping and refining hub. Any weather-related
interruption could have an impact on crude and fuel production
levels, as well as imports and exports.
"Although the hurricane did not cause severe disruptions in
U.S. oil production and refining so far, several oil ports
remain closed while vast power outages can weigh on oil demand,"
Goldman Sachs said in a note.
Flooding in city regions was easing as water receded quickly
after Beryl's severe rainfall, which surpassed 11 inches in some
areas south of Houston.
Most refineries in Houston and Texas City are designed to
maintain operations even amid heavy rainfall, but some of those
facilities, ports and other energy infrastructure can develop
problems from sustained power interruptions, experts said.
Marathon Petroleum Corp ( MPC ) was preparing on Monday to
restart multiple units at its 631,000-bpd Galveston Bay oil
refinery in Texas City, sources said. The plant was awaiting
power to restart operations, the company said in a state
regulatory filing.
Phillips 66's 265,000-bpd Sweeny refinery in Texas
returned plants to normal operations after an upset early on
Monday caused by Beryl.
Citgo Petroleum temporarily reduced production over the
weekend at its 165,000-bpd Corpus Christi plant.
Ports from Point Comfort through Houston, including
Freeport, Galveston, and Texas City, saw damage in various forms
along with substantial operational delays, a shipping agency
wrote in a note to clients.
The Port of Corpus Christi reopened ship navigation on
Monday and the port of Freeport reopened on Tuesday. But the
Port of Houston said its terminals would remain closed on
Tuesday after conducting a preliminary assessment of facilities
and systems.
While some ships may begin moving into the port of
Houston on Tuesday afternoon, deep draft ship movements would
not likely begin until Wednesday after the safe reopening of its
various channels, the shipping agency wrote.
Formosa Plastics said on Monday it had temporarily shut
down operations at its Point Comfort plant site.
Shell, Chevron ( CVX ) and BP started
redeploying personnel evacuated from their Gulf of Mexico
platforms.
Freeport LNG, the third largest liquefied natural gas
facility in the U.S., has not provided an operational update
since it said it ramped-down production on Sunday.
Enterprise Products Partners ( EPD ) said a unit tripped due
to the weather at its natural gas liquids (NGL) processing
facility in Mont Belvieu, in east Texas, according to a filing.
Energy Transfer ( ET ) also faced issues at Mont Belvieu,
according to filings. Mont Belvieu is an NGL processing and
storage hub as well as the pricing point for North American NGL
markets.