HOUSTON (ICIS)-Hurricane Ida made landfall in Louisiana on Sunday with an intensity of a Category 4 hurricane. Meteorologists expect the storm to continue northward along the state's chemical corridor.
In response to the storm, many companies have closed their factories. Many of the plastics and chemicals produced by these factories are in short supply, and prices are at record highs. If they remain idle long enough, the shutdown will further tighten the market.
Storm Ida made landfall near Port Fuljeong, Louisiana, with a maximum sustained wind speed of 150 mph (241 km/h), making it a Category 4 hurricane with the size of the Saffir-Simpson storm.
According to the National Hurricane Center, Ida is moving northwest at a speed of 13 miles per hour.
The following figure shows the path of the storm.
Plant closure Dow closed its St Charles plant and Plaquemine plant operations in Taft, Louisiana. Both sites have biscuits and factories that produce polyethylene (PE).
The St. Charles plant also produces chemicals such as acetic acid, acrylic acid, ethylene oxide (EO), glycol ethers and surfactants.
The Plaquemine plant also produces benzene, toluene, EO, glycol ethers, propylene glycol (PG) and propylene oxide (PO) and other chemicals.
In Baton Rouge, ExxonMobil is adjusting its rates and closing some units of its complex.
The ExxonMobil plant has an oil refinery and a chemical complex that produces ethylene, propylene, butadiene (BD), PE, polypropylene (PP), phthalic anhydride (PA), plasticizers, benzene, Toluene, isopropanol (IPA), base oil and various other chemicals.
BASF plans to close its Geismar plant by Sunday. It produces butanediol (BDO), EO, methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyether polyols.
Phillips 66 closed the Alliance refinery in Belle Chasse, Louisiana. In addition to fuel, the refinery also produces benzene, mixed xylene (MX) toluene and propylene.
Shell closed its plants in Geismar and Norco.
Geismar produces linear alpha olefins (LAO), ethylene glycol (EG), EO and glycol ethers.
Norco produces ethylene, propylene and BD.
Cornerstone is closing its acrylonitrile (ACN) and melamine plants in Louisiana.
It is the only melamine factory in the United States. This material is used to make laminates such as Formica.
Many of the products produced in these factories are already in short supply, and discontinuation of production may increase availability.
ICIS's assessment of US aggregated MDI is at a record high, reflecting market tensions.
Similarly, Axioms assessed the North American BDO contract and the US melamine contract as record highs before the hurricane.
Axioms recently assessed the double-digit increase in U.S. propylene contract prices.
As Ada moves inland, other factories may close.
Eastern Louisiana, which was attacked by Ida, has a large number of plants that produce polyvinyl chloride (PVC), a plastic used to make pipes and siding and profiles used in house construction.
Before Hurricane Ida, the contract price of PVC in the United States had hit a record high.
PVC is made of chlorine, and several factories in eastern Louisiana produce this chemical, as well as caustic soda, a by-product of these installations.
According to the US Bureau of Security and Environmental Enforcement (BSEE), as of Saturday afternoon, oil and gas operators have evacuated 279 platforms, of which nearly 50% are located in the Gulf of Mexico.
Producers have shut down nearly 91% of oil production and nearly 85% of natural gas production.
Power Outages According to PowerOutage.US, as of Sunday afternoon, more than 110,000 power outages have been reported to utility companies.
A power outage may shut down the operation of the chemical plant and delay its restart.
Port restrictions and closures Ports threatened by Hurricane Ida will either restrict operations or close them.
The following table shows the status of several ports. X-rays refer to tropical storms or hurricane-strength storms that are expected to make landfall within 48 hours, Yankees make landfall within 24 hours, and Zulu make landfall within 12 hours.
Rail Update The New Orleans Flood Protection Agency was originally scheduled to close the flood gates in the area on Saturday afternoon, which will interrupt all east and west rail routes through New Orleans, including transfer routes from other operators.
BNSF was originally scheduled to suspend all rail operations between Lafayette, Louisiana and New Orleans at 1200 local time on Saturday.
Norfolk Southern stated that when the authorities close the last floodgate at 1400 local time on Saturday, its operations will be interrupted. Norfolk Southern said on Friday that shipments to New Orleans will be affected for approximately 48 hours.
Union Pacific was originally scheduled to suspend operations at its multimodal terminal in Avondale, Louisiana, at 1600 local time on Friday.
Both Kansas City South and CSX said on Friday that they are taking steps to prepare for Ida. They did not announce any suspensions.
Potential damage to Ada's size, strength, and path could cause damage worth billions of dollars.
Real estate data company CoreLogic estimated on Friday that the storm surge in Ida is threatening 941,392 houses. If all these houses are destroyed and replaced, CoreLogic estimates that the cost will reach $220.37 billion.
CoreLogic says that the reconstruction cost value represents the worst-case scenario. For reference, the company estimated in 2020 that Hurricane Laura could cause insurable losses of US$8 billion to US$12 billion.
Home repair, renovation and construction are important end markets for many chemicals and polymers.
The white pigment titanium dioxide (TiO2) is used in paints.
Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ether, methyl ethyl ketone (MEK) and isopropanol (IPA).
Mixtures of aliphatic and aromatic solvents are also used in the manufacture of paints and coatings.
For polymers, expandable polystyrene (EPS) and polyurethane (PUR) foams are used for insulation.
Polyurethane is made of MDI, TDI and polyol.
High-density polyethylene (HDPE) is used for pipes. PVC is used in the manufacture of cladding, window frames, wires and cables, floor and roof membranes.
Unsaturated polyester resin (UPR) is used in the manufacture of coatings and composite materials.
Vinyl acetate monomer (VAM) is used in the manufacture of paints and adhesives.
Additional reporting by Adam Burkin, Tracy Dang, Michael Sims, Antoinette Smith and Alex Snodgrass
The thumbnail shows the path of Ida. Source: National Hurricane Center
HOUSTON (ICIS)-Hurricane Ida made landfall in Louisiana on Sunday with an intensity of a Category 4 hurricane. Meteorologists expect the storm to continue northward along the state's chemical corridor.
In response to the storm, many companies have closed their factories. Many of the plastics and chemicals produced by these factories are in short supply, and prices are at record highs. If they remain idle long enough, the shutdown will further tighten the market.
Ida made landfall near Port Fulchong, Louisiana, with a maximum sustained wind speed of 150 mph (241 km/h), making it a Category 4 hurricane with the size of the Saffir-Simpson storm.
According to the National Hurricane Center, Ida is moving northwest at a speed of 13 miles per hour.
The following figure shows the path of the storm.
Dow closed its St Charles and Plaquemine plants in Taft, Louisiana. Both sites have factories producing polyethylene (PE).
https://subscriber.icis.com/news/petchem/news-article-00110679470
The St. Charles plant also produces chemicals such as acetic acid, acrylic acid, ethylene oxide (EO), glycol ethers, and surfactants.
The Plaquemine plant also produces chemicals such as benzene, toluene, EO, glycol ether, propylene glycol (PG), and propylene oxide (PO). Plaquemine also has cookies.
In Baton Rouge, ExxonMobil is adjusting its rates and closing some units of its complex.
The ExxonMobil plant has an oil refinery and a chemical complex that produces ethylene, propylene, butadiene (BD), PE, polypropylene (PP), phthalic anhydride (PA), plasticizers, benzene, Toluene, isopropanol (IPA), base oil and various other chemicals.
https://subscriber.icis.com/news/petchem/news-article-00110679468
BASF plans to close its Geismar plant by Sunday. It produces butanediol (BDO), EO, methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyether polyols.
https://subscriber.icis.com/news/petchem/news-article-00110679464
Phillips 66 closed the Alliance refinery in Belle Chasse, Louisiana. In addition to fuel, the refinery also produces benzene, mixed xylene (MX) toluene and propylene.
https://subscriber.icis.com/news/petchem/news-article-00110679255
Shell closed its plants in Geismar and Norco.
Geismar produces linear alpha olefins (LAO), glycol (EG) EO and glycol ethers.
Norco produces ethylene, propylene and BD.
https://subscriber.icis.com/news/petchem/news-article-00110679252
Cornerstone is closing its acrylonitrile (ACN) and melamine plants in Louisiana.
https://subscriber.icis.com/news/petchem/news-article-00110679238
It is the only melamine factory in the United States. This material is used to make laminates such as Formica.
Many of the products produced in these factories are already in short supply, and discontinuation of production may increase availability.
ICIS's assessment of US aggregated MDI is at a record high, reflecting market tensions.
Similarly, Axioms assessed the North American BDO contract and the US melamine contract as record highs before the hurricane.
Axioms recently assessed the double-digit increase in U.S. propylene contract prices.
https://subscriber.icis.com/search/news/petchem/news-article-00110677696
According to the US Bureau of Security and Environmental Enforcement (BSEE), as of Saturday afternoon, oil and gas operators have evacuated 279 platforms, of which nearly 50% are located in the Gulf of Mexico.
Producers have shut down nearly 91% of oil production and nearly 85% of natural gas production.
According to data from PowerOutage.US, as of Sunday afternoon, more than 110,000 power outages have been reported to utility companies.
A power outage may shut down the operation of the chemical plant and delay its restart.
Port restrictions and closures Ports threatened by Hurricane Ida will either restrict operations or close them.
The following table shows the status of several ports. X-ray means that tropical or hurricane-strength storms are expected to make landfall within 48 hours, Yankees make landfall within 24 hours, and Zulu make landfall within 12 hours.
The New Orleans Flood Protection Agency was originally scheduled to close on Saturday afternoon, which will interrupt all east and west rail routes through New Orleans, including transfer routes from other operators.
https://subscriber.icis.com/search/news/petchem/news-article-00110679239
BNSF was originally scheduled to suspend all rail operations between Lafayette, Louisiana and New Orleans at 1200 local time on Saturday.
Norfolk Southern stated that when the authorities close the last floodgate at 1400 local time, its operations will be interrupted. Norfolk Southern said on Friday that shipments to New Orleans will be affected for approximately 48 hours.
Union Pacific was originally scheduled to suspend operations at its multimodal terminal in Avondale, Louisiana, at 1600 local time on Friday.
Both Kansas City South and CSX said on Friday that they are taking steps to prepare for Ida. They did not announce any suspensions.
Ada's size, power, and path can cause billions of dollars in damage.
Real estate data company CoreLogic estimated on Friday that the storm surge in Ida is threatening 941,392 houses. If all these houses are destroyed and replaced, CoreLogic estimates that the cost will reach $220.37 billion.
CoreLogic says that the reconstruction cost value represents the worst-case scenario. For reference, the company estimated in 2020 that Hurricane Laura could cause insurable losses of US$8 billion to US$12 billion.
Home repair, renovation and construction are important end markets for many chemicals and polymers.
The white pigment titanium dioxide (TiO2) is used in paints.
Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ether, methyl ethyl ketone (MEK) and isopropanol (IPA).
Mixtures of aliphatic and aromatic solvents are also used in the manufacture of paints and coatings.
For polymers, expandable polystyrene (EPS) and polyurethane (PUR) foams are used for insulation.
Polyurethane is made of methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyols.
High-density polyethylene (HDPE) is used for pipes. Polyvinyl chloride (PVC) is used in the manufacture of cladding, window frames, wires and cables, floor and roof membranes.
Unsaturated polyester resin (UPR) is used in the manufacture of coatings and composite materials.
Vinyl acetate monomer (VAM) is used in the manufacture of paints and adhesives.
Additional reporting by Adam Burkin, Tracy Dang, Michael Sims, Antoinette Smith and Alex Snodgrass
The thumbnail shows the path of Ida. Source: National Hurricane Center
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