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US Gulf Coast residents flee, oil production shut as Francine intensifies
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US Gulf Coast residents flee, oil production shut as Francine intensifies
Sep 11, 2024 12:11 AM

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Francine forecast to wallop Louisiana with fast winds

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Energy companies shut-in output at several production

platforms

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Storm poised to become major test for US LNG export plants

By Gary McWilliams and Marianna Parraga

HOUSTON, Sept 10 (Reuters) - Tropical Storm Francine was

intensifying and on track to become a hurricane on Tuesday, the

U.S. National Hurricane Center said, prompting Louisiana

residents to flee inland and oil and gas companies to shut-in

Gulf of Mexico production.

Francine could wallop the Louisiana coast on Wednesday with

life-threatening winds, drenching rains and an up to 10-foot

(3-m) storm surge. Authorities called for a mandatory evacuation

of residents in coastal communities, schools were shut and

officials distributed sandbags.

The storm is anticipated to increase its forward speed on

Tuesday just off the coasts of northeastern Mexico and southern

Texas before making landfall near Cameron in Louisiana. It will

be a major test for liquefied natural gas (LNG) export plants

recently built in the region.

Energy companies began evacuating offshore workers and

shut-in output at several production platforms ahead of the

storm.

The region is home to about 15% of U.S. oil production and

2% of natural gas output.

U.S.

natural gas prices

rose over 2% on worries about the production

shut-ins and potential impact on LNG plants. Global oil demand

concerns overshadowed the storm and

U.S. crude

futures fell more than 5%.

Oil refiners and fuel distributors along the Louisiana

coast were preparing to weather the storm. Citgo Petroleum said

its Lake Charles oil refinery was implementing its hurricane

plan.

Kinder Morgan ( KMI ) said it plans to shut by the end

of Tuesday its coal-handling International Marine Terminal on

the Mississippi River.

The port of Brownsville near the border with Mexico and

other smaller terminals in Texas remained closed on Tuesday,

while other ports, including Houston, Galveston, Corpus Christi,

Texas City and Freeport, were working with restrictions.

Between Texas and Louisiana, the Coast Guard set port

condition "Yankee" for Beaumont, Port Arthur, Lake Charles,

Cameron, Sabine, New Orleans, Baton Rouge and Plaquemines,

meaning vessels must arrange immediate departure or seek

alternate destinations. Cargo operations must cease.

Ports in Mississippi and Alabama, including Pascagoula also

began preparations, but remained open for commercial traffic on

Tuesday. After landfall, the center of Francine is expected to

move into Mississippi on Wednesday night or Thursday.

Energy pipeline operator Enbridge ( ENB ) pulled employees

from several U.S. Gulf of Mexico platforms. Its Manta Ray Gas

Gathering system declared force majeure at its Green Canyon 158

Brutus receipt point and stopped receiving natural gas, the

company told customers.

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

Monday removed offshore staff and halted some Gulf of Mexico oil

and gas operations.

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.

Natural gas flowing to the Cameron LNG export plant dropped

on Tuesday to 1.3 billion cubic feet per day (bcfd) from about

2.2 bcfd on Monday, LSEG data showed. Sempra ( SRE ) did not reply to a

request for comment.

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.

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