China Drying Network News On the occasion of the seventh anniversary of the Katrina hurricane disaster, on August 28, US local time, the tropical storm Isaac landed on the southeast coast of Louisiana and upgraded to a hurricane along the northern coast of the Gulf of Mexico. Cause violent storm surge. However, many stone chemical producers in the region have already been waiting for their efforts to ensure the supply of products as far as possible on the basis of ensuring the safety of employees and the environment. Analysts said that factories directly affected by the hurricane are concentrated in the refining sector and there will be no serious shortage of chemical products.
According to information released by the U.S. Bureau of Safety and Environmental Enforcement, the rigs that may be passing through the Isaac route off the coast of the Gulf of Mexico have been closed, and nearly 90% of the Gulf of Mexico’s crude oil production was interrupted on August 28. Of the total crude oil and natural gas production in the United States, the Gulf of Mexico production accounted for 23% and 7%, respectively.
In a survey conducted on August 27, a spokesman for Exxon Mobil Corporation said that the company had launched a hurricane defense program for its equipment in Baton Rouge, Louisiana, including the reduction of chemical production bases. The operating rate of the device. At the same time, the company has also begun to evacuate workers from offshore rigs located on the storm path. "We continue to monitor the hurricane closely and will restore the operating rate of all installations as safe conditions permit. ExxonMobil's main purpose is to protect the safety of company personnel and communities and continue to provide customers with a reliable supply of products."
A spokesman for Westlake Chemical Company stated that it has begun an orderly closure of its vinyl resin production facility in Gasma, Louisiana. The company also implemented a contingency plan for its naphtha and polyethylene installations in Lake Charles, Louisiana, and said it will determine which devices need to be shut down or continue production based on the development of the hurricane. According to the current forecast, the company plans to continue operating these devices, and all other production bases and corporate headquarters will also operate normally.
Dow Chemical is the largest petrochemical company in Louisiana and produces more than 100 basic and specialty chemicals at its manufacturing facilities in Placwemein, Grand Estuary, Harnville, Sterling, Green and Vicks. The company is tracking the dynamics of the hurricane and all its Louisiana factories are in a state of emergency and well prepared. "Dow Chemicals has a comprehensive and detailed hurricane response program at all production sites in the coastal region, designed to reduce or avoid production disruptions while protecting the safety and health of our employees, communities and the environment."
Polycarbonate giant Lyondell Basel, who owns a polypropylene production facility in the Lake Charles area, said that since the hurricane is expected to pass in the area east of the production plant, no further action has been taken. Total Petrochemical owns a factory in Caville. The company has a complete set of crisis management and business continuity plans that will be activated once a hurricane invades the Gulf of Mexico.
On August 27, Pinnacle Polymers announced that it was affected by force majeure and its raw material supply at the propylene plant in Garyville, Louisiana, was interrupted.
The possible impact of the "Isak" hurricane also worried stocks investors in the chemical industry, and some chemical company stocks fell. However, analysts said on August 27 local time that there was no need to worry about the long-term shutdown of the device.
Lawrence Alexander, an analyst at Jeffriess, said that any losses caused by Hurricane could largely be offset by price rises triggered by insurance compensation and product outages. Hurricane-related production disruptions are more likely to occur at refineries and will not directly affect the production of chemical products. Alexander said that most of the production of chemical products used for fuel additives, pesticides and dyes is most likely to be interrupted because they are mostly concentrated in the Gulf of Mexico. However, taking into account the economic downturn, the demand for chemical products in these areas is also slowing down, so the outage may not cause a serious shortage of products. If more than 20% of chemical production is affected, it may cause pressure on chemical companies during the rest of the year. Even so, it will not cause a sharp drop in chemical stocks.
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