By Arathy Somasekhar, Georgina McCartney and Laila Kearney
HOUSTON, July 9 (Reuters) - Oil and gas companies in
Texas restarted some operations on Tuesday after Hurricane Beryl
lashed the state with 80-mph (129-kph) winds, while some
facilities sustained damage and power had not been fully
restored.
Beryl's impact on oil and gas production was expected to be
limited. The storm made landfall on Monday near the coastal town
of Matagorda. Energy firms shut operations ahead of its arrival
and Texas' largest ports and navigation channels closed.
Some ports reopened on Tuesday and most producers and
facilities were ramping up output. Some were limited by the slow
restoration of power to homes, businesses and industrial
customers.
Weather forecasting firm AccuWeather issued a preliminary
estimate of $28 billion to $32 billion in total damage and
economic loss from the hurricane in the United States.
More than 1.8 million customers remained without power in
Texas on late Tuesday, according to PowerOutage.us, including
some 1.4 million served by provider CenterPoint Energy ( CNP ).
The Texas figure was more than double the number of
customers that lost power in May during a weather event in
Houston. It took more than a week for those outages to be
resolved in some city neighborhoods.
CenterPoint said in a statement that it had restored power
to more than 850,000 customers of the total 2.26 million
impacted, and "remains confident in restoring 1 million
customers within 48 hours of storm's exit from area".
"I can't give you a timeline, but it's not going to be
tomorrow," Centerpoint's Local Government Relation Manager Paul
Lock replied to a query on when power would be fully restored.
Texas Lieutenant Governor Dan Patrick urged CenterPoint to
work as quickly as it can to restore power.
"We can do a post-analysis of their success or failures
after we get the power back," Patrick added in response to
questions about whether the power company was prepared in
advance of the hurricane.
Houston was sunny on Tuesday with temperatures in the high
90 degrees Fahrenheit (32.2° degrees Celsius), causing problems
as power outages knocked out air conditioning. Many gasoline
stations in Houston were closed due to lack of power or fuel
stocks.
Beryl lost strength quickly upon making landfall and by
Tuesday was downgraded to a post-tropical cyclone, the U.S.
National Hurricane Center said. It warned that flash flooding
and tornados remained possible from mid-Mississippi to the Lower
Ohio Valley.
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 affect 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.
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-barrel-per-day (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 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 along with
substantial operational delays, a shipping agency wrote in a
note to clients.
The Port of Corpus Christi reopened ship navigation on
Monday. The Port of Freeport said it reopened on Monday, adding
that some facilities were running on backup power while utility
crews worked to restore electricity.
The Houston Ship Channel opened to inbound traffic with
restrictions, a notice from the shipping agent said. Port
Houston said its terminals would be resuming operations on
Wednesday.
Vessel and cargo operations at the Port of Galveston, about
50 miles (80 km) from Houston, remained suspended on Tuesday as
power outages continued in parts of the city, said Rodger Rees,
CEO of maritime commercial center Galveston Wharves.
At least one cruise ship was cleared to dock at Galveston on
Tuesday.
Shell, Chevron ( CVX ) and BP started
redeploying personnel who had been evacuated from their Gulf of
Mexico platforms. Exxon Mobil ( XOM ) was assessing its Hoover
offshore platform, while working to restart operations, it said.
Freeport LNG, the third-largest liquefied natural gas
facility in the U.S., has not provided an operational update
since it said it reduced production on Sunday.
Enterprise Products Partners' ( EPD ) 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's ( ET ) Mont Belvieu NGL facility was fully
operational on Tuesday, the company said, following issues
reported in a regulatory filing. Mont Belvieu is the pricing
point for North American NGL markets.