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UPDATE 3-U.S. energy firms face another storm hit amid slow recoveries

Mon, 13th Sep 2021 17:46

(Updates Gulf of Mexico production, Citgo; adds quote, details)

By Liz Hampton and Marianna Parraga

Sept 13 (Reuters) - Royal Dutch Shell on Monday
began evacuating staff from a U.S. Gulf of Mexico oil platform,
and other energy companies began preparing for hurricane-force
winds from a second Gulf Coast storm in as many weeks.

Tropical Storm Nicholas was about 105 miles (115 km) south
of Port O'Connor, Texas, and moving north with winds of 60 miles
per hour (97 kph). It could become a hurricane just ahead of
landfall on Monday, according to the National Hurricane Center.

Waves stirred up by Nicholas neared 12 feet (3.7 m) in
height were reported outside of Port Aransas, near Corpus
Christi, Texas, with wind gusts up to 54 mph about 40 miles east
of Padre Island, the National Weather Service said.

Rainfall totals of up to 16 inches and possibly 20 inches in
some isolated areas were in the forecast for coastal Texas.

Nicholas is the second cyclone to threaten the U.S. Gulf
Coast energy complex in recent weeks. Hurricane Ida wreaked
havoc on oil production and refining facilities in late August
and early September.

More than 40% of the U.S. Gulf of Mexico's oil and gas
output remained offline on Monday, two weeks after Ida slammed
into the Louisiana coast, according to the Bureau of Safety and
Environmental Enforcement (BSEE).

Shell began evacuating non-essential personnel from its
Perdido platform, which was unaffected by Ida. It was continuing
to assess damages to its West Delta-143 hub, a transfer station
for three major oilfields that remain offline.

PORTS BATTEN DOWN

Shippers were warned of hurricane-force winds at oil export
terminals on the Texas coast. The Port of Corpus Christi could
see hurricane force winds in the next day, the U.S. Coast Guard
said, and pilots there suspended activities.

The Coast Guard ordered vessels in the Texas ports of
Houston, Galveston, Texas City and Freeport to cease cargo
transfers if winds reach 40 mph. It barred inbound transit of
500 gross tons and greater vessels at all four.

Refiners also began making preparations for the storm.
Phillips 66 refineries in Sweeney, Texas, and Lake
Charles, Louisiana, activated their hurricane plans, Exxon Mobil
prepped its Baytown and Beaumont, Texas, petrochemical
complexes for severe weather, and Citgo Petroleum said it was
securing its Corpus Christi refinery in Texas.

"The big thing is going to be the rain. It's going to be a
slow-moving storm. When storms move at 5 of 8 miles per hour it
can take a while for them to clear out," said Phil Klotzbach, a
researcher at Colorado State University.

U.S. crude futures were up more than 1% on Monday to
$70.56 a barrel, while gasoline futures were roughly flat
at $2.1625 a gallon.

Oil imports and exports face potential delays from Nicholas.
Vessels that were unable to load or discharge during Ida could
be rerouted again, shippers said.

The first supertanker scheduled to dock since Ida at the
Louisiana Offshore Oil Port (LOOP), the largest U.S. privately
owned terminal for crude exports and imports, has yet to load,
according to Refinitiv Eikon vessel tracking.
(Reporting by Liz Hampton in Denver, Marianna Parraga in
Houston, and Arpan Varghese in Bengaluru; Editing by Marguerita
Choy and Steve Orlofsky)

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