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Factbox: U.S. Gulf Coast energy infrastructure shut due to Harvey
September 5, 2017 / 8:03 PM / 3 months ago

Factbox: U.S. Gulf Coast energy infrastructure shut due to Harvey

(Reuters) - Gulf Coast refineries were slowly recovering from the devastating effects of Hurricane Harvey, which hammered Louisiana and Texas for several days, shutting key infrastructure in the heart of the U.S. oil and natural gas industry.

Several refineries and portions of key pipelines had resumed operations as of Tuesday, while terminals, drilling platforms and other facilities were working to restart after the storm knocked out roughly 4.2 million barrels per day (bpd) of refining capacity, or nearly 23 percent of total U.S. capacity.

As of Tuesday, about 3.8 million barrels of daily refining capacity, or about 20 percent, was shut in, though a number of the refineries in that group were in the process of restarting. Several others, including Marathon’s Galveston Bay and Citgo’s Corpus Christi refineries, were running at reduced rates, according to company reports and Reuters estimates.

Motiva Enterprises said it could return to 40 percent production at its Port Arthur, Texas, refinery, the nation’s largest with capacity of 603,000 barrels a day, by the end of this weekend. Motiva is waiting on the restoration of shipping and pipelines to begin the partial restart, sources said.

Colonial Pipeline was reopening its main distillate line from Houston and Pasadena, Texas, to Lake Charles, Louisiana, on Monday afternoon, with expectations to restart its gasoline line on Tuesday. The Explorer Pipeline was also aiming for a restart.

Brazilian Petrobras’ 112,230 barrel-per-day Pasadena refinery in Texas also reported on Tuesday the facility’s planned startup after the storm.

Valero on Monday said its Corpus Christi and Texas City oil refinery operations had recovered to pre-hurricane levels, while regulatory filings showed the company restarting multiple units at Port Arthur. Operations at its Three Rivers refinery continued to ramp up, while its Houston refinery will increase rates as transportation and logistics infrastructure become more accessible.

As of Monday, the total of U.S. Gulf of Mexico oil production closed increased to roughly 6.94 percent, or 121,484 barrels bpd, from 5.5 percent on Sunday, said the federal Bureau of Safety and Environmental Enforcement.

The U.S. Coast Guard on Monday allowed some barge traffic to enter Port Arthur and was considering allowing vessels to enter on Tuesday, a spokesman said.

Port Arthur was one of three Texas ports still closed, along with Beaumont and Port Orange. The state’s 25 other ports were operational as of Monday, some with restrictions, according to Colonel Lars Zetterstrom, Galveston District commander of the U.S. Army Corps of Engineers.

PRICE IMPACT

MARKET RIC ACTION FULL STORY

Gasoline Front-month contract

Futures hit $2.17 a gallon

Aug. 31, highest

since June 2015.

Futures fell nearly 3

percent on Monday and

Tuesday.

Front-month Hit highest level in

gasoline almost five years on

spread Thursday. It was down

24 percent on

Tuesday.

Physical Cash gasoline prices [PRO/U]

Gasoline for shipment on the

Colonial Pipeline in

the Gulf Coast soared

to the highest in

nearly 5 years -

traders

Gasoline Gasoline margins

margins rallied to their

strongest in 5 years

for this time of

year. On Tuesday,

they tumbled more

than 13 percent.

WTI/Brent Widened to a contract

spread low of negative $5.90

a barrel on Aug 28.

On Tuesday, it

narrowed to a low of

negative $4.36.

Front-month Widened to contract

crude spread low of negative 88

cents on Sept 1.

Narrowed to around

negative 45 cents on

Tuesday.

REFINERIES:

COMPANY LOCATION CAPACITY ACTION FULL STORY

(BPD)

Citgo Corpus Christi 157,500* Restarting

Citgo Lake Charles, 425,000 Halved

La. production to

212,500 bpd

Exxon Baytown 560,500 Restarting

Mobil operations

Exxon Beaumont 362,300 Reports flaring

Mobil occurred during

operational

shutdown, shut

down last week

Flint Corpus Christi 296,470  Restarting

Hills

LyondellB Houston 263,776 Production at

asell roughly 63

percent

Marathon Catlettsburg, 19,000 Has delayed a

KY * mid-September

shut down amid

high margins

Marathon Galveston Bay 459,000 Restarted last

week

Marathon Texas City 86,000 bpd Restarting

operations

Motiva Port Arthur 603,000 Crude

distillation

unit, coker and

hydrocracker

expected to

restart as early

as this week

Petrobras Pasadena 112,229 Starting to

resume

operations on

Tuesday

Phillips Sweeny 247,000 Preparing to

66 start operations

Phillips Borger 146,000 Planned

66 maintenance work

underway since

Tuesday

Shell Deer Park 325,700 Preparing

reformer, CDU

restarts since

Monday

Total Port Arthur 225,500 Full power

restored on

Sunday, should

restart “soon”

Valero Texas City 225,000** Running at full

rates

Valero Houston 191,000* Reduced rates.

Will increase

”as

transportation

and logistics

infrastructure

becomes more

available.”

Valero Corpus Christi 293,000** Running at full

rates

Valero Three Rivers 89,000* Ramping up

Valero Port Arthur 335,000 Restarting

multiple units

on Monday

* - Included in group running at reduced rates

** - Considered up and running, not included

PIPELINES:

COMPANY Pipeline ACTION FULL STORY

Colonial Colonial On schedule to restart lines

Pipeline from Houston to Lake

Charles, La. Restarted

distillate line from Houston

to Hebert, Texas, on Monday.

Gasoline line from Pasadena

and Houston, Texas restarted

on Tuesday. Pipeline system

east of Lake Charles,

Louisiana, continues to

operate, but the company has

warned that deliveries would

be affected by reduced

supplies

Explorer Explorer 28-inch Texas to Oklahoma [L2N1LL01W]

line restarted on Sunday,

24-inch Oklahoma to U.S.

Midwest line to restart on

Monday

Kinder KMCC Shut parts of KMCC pipeline

Morgan system for crude and

condensate

Kinder Double Shut due to storm

Morgan Eagle

Magellan Longhorn, Pipelines resumed last week.

BridgeTex Co said on Sunday that it

crude oil was receiving West Texas

pipelines crude at origin points in

Colorado City and Crane,

Texas. Majority of

operations at Houston-area

crude pipeline distribution

system resumed.

Williams Transco Gas Gas received on the mainline

Companies Pipeline for delivery on the Central

Texas Gathering System yet

not available. Post storm

inspections to onshore and

offshore facilities in Texas

completed

Enterprise Refined Delivery points operating at

Products products full rates. Cushing-Gulf

Partners lines Coast lines have remained in

Beaumont-Mi operation

dwest

TERMINALS:

COMPANY LOCATION ACTION FULL STORY

NuStar Corpus Operational

Christi

Magellan Corpus Storage and distribution services

Christi have commenced, it said last

week. Expects condensate splitter

to restart middle of this week

following further reviews

Magellan Galena It said last week that clean-up

Park and inspections ongoing, no

timeline for restart yet

Phillips 66 Freeport Currently operational

Terminal

Phillips 66 Refined Refined products terminal resumed

products truck loading on Saturday

terminal

Phillips 66 Beaumont Resumed

Buckeye Corpus Restarted facilities last week,

Christi regular work schedule has resumed

at the Corpus Christi processing

and marine terminal facilities

Kinder Houston Terminals in ship channel

Morgan secured, aiming to resume full

operations

Enterprise Mont Resumed commercial service at

Products Belvieu Houston, Texas City and Freeport

Partners marine terminals, and partial

service at Beaumont, Texas. The

refined products terminal in Port

Arthur was still down on Tuesday

due to high water. The company’s

NGL fractionators, splitters,

isomerization facilities and

octane enhancer units in Mont

Belvieu, Texas and natural gas

plants South Texas have also

resumed operations

GULF PRODUCTION:

COMPANY LOCATION ACTION FULL STORY

ExxonMobil Galveston Back online

209 platform

Shell Perdido Platform starting

platform back up, production

has not yet restarted

Shell Enchilada Production shut in,

Salsa facility secured

ConocoPhillips Magnolia No production impact

Platform expected, personnel

evacuated

BP Atlantis, Gulf operations at

Mad Dog reduced rates due to

shutdown of CHOPS

pipeline system

BP U.S. Gulf Offshore oil

Plants platforms in the U.S.

Gulf of Mexico, Texas

City chemical plant

remain online

Genesis Energy Cameron System known as CHOPS

Highway Oil is offline due to the

Pipeline storm, a third of

System volumes diverted from

CHOPS to Poseidon

ONSHORE PRODUCTION

COMPANY LOCATION ACTION FULL STORY

Statoil Eagle Ford Production back at

Shale, Texas curtailed rates.

Infrastructure

bottleneck biggest

hindrance to

resumption of full

production. Houston

office back open.

EOG Resources Eagle Ford Shut-in some

Shale, Texas production; expects

Q3 output to be down

about 15,000 bpd

Marathon Oil Eagle Ford Production returning

Shale, Texas to normal on Tuesday.

Drilling and fracking

operations have

resumed.

ConocoPhillips Eagle Ford Oil production at 80

Shale, Texas pct of pre-storm [L2N1LM1O9]

level of 130,000 bpd

Global headquarters

in Houston closed

until Sept. 11 at

least.

Pioneer Eagle Ford Stopped all well

Natural Shale, Texas completions in the

Resources Eagle Ford

Reporting by Erwin Seba, Catherine Ngai, Gary McWilliams, Marianna Parraga and Ernest Scheyder in Houston, Julia Simon, Devika Krishna Kumar, Jessica Resnick-Ault and Libby George in New York and Valerie Volcovici in Washington; Editing by James Dalgleish and Tom Brown

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