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Francine forecast to wallop Louisiana with 100 mph winds

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Storm poised to become major test for US LNG export plants

By Gary McWilliams

HOUSTON, Sept 10 (Reuters) - Tropical Storm Francine

began to rapidly intensify and was expected to produce a

dangerous category 2 hurricane, forecasters said, prompting

Louisiana residents to flee inland and oil and gas producers to

shut-in Gulf of Mexico production.

The storm could wallop the Louisiana coast on Wednesday with

life-threatening 100 mile per hour (160 kph) winds, drenching

rains and an up to 10-foot storm surge. It is expected to make

landfall near Cameron, bringing a major storm test for liquefied

natural gas (LNG) export plants recently built in the region.

Authorities called for a mandatory evacuation of residents

in three Louisiana coastal communities, schools were shut and

officials distributed sandbags to help protect against flooding.

Energy companies began evacuating offshore workers and

shut-in output at several production platforms ahead of the

storm. The port of Brownsville, Texas, was closed and others

from Corpus Christi north to Galveston had imposed restrictions.

Oil prices rose on Tuesday and natural gas prices fell, both

on worries about the production shut-ins and potential impact on

gas processing at LNG plants. The region is home to about 15% of

U.S. oil production and 2% of natural gas output.

Exxon Mobil ( XOM ), Shell and Chevron ( CVX )

removed offshore staff and halted some oil and gas operations,

they said. Exxon cut production at its Hoover oil production

facility about 150 miles east of Corpus Christi, Texas.

Chevron ( CVX ) withdrew workers from four offshore facilities and

halted oil and gas output at two. Shell cut production at one

platform, moved workers off three facilities and paused drilling

at two.

BP ruled out any major impacts on its offshore

facilities, while Woodside Energy ( WDS ) and Occidental

Petroleum ( OXY ) were prepared to take action as needed.

The storm is poised to become a major test for new LNG export

plants in Louisiana. Sempra's ( SRE ) Cameron LNG, Venture

Global LNG's Calcasieu Pass LNG and Tellurian's

Driftwood LNG development are in the crosshairs of Francine.

Freeport LNG, which operates the nation's second-largest

export plant for the super-chilled gas, said it had begun storm

preparations at its Texas plant without providing details.