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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.