MOSCOW (MRC) -- Operations at several major refineries in southern Louisiana have not been affected by deadly floods that have claimed five lives and forced emergency crews to rescue more than 20,000 people, the companies and sources familiar with operations said on Monday, reported Reuters.
Major oil markets were roiling on Monday by potential disruptions due to the deluge and a fire last week at Motiva Enterprises Convent, Louisiana refinery.
The ICE gas oil crack spread jumped 7% on Monday due to expectations of reduced production or transport interruptions from Louisiana refineries.
Operations at Motiva Enterprises 235 Mbpd Convent, Louisiana refinery have been unaffected by the flooding, said sources familiar with plant operations Monday.
Output from the refinery has been reduced by the outage of the 45 Mbpd heavy oil hydrocracker, called the H-Oil unit, in a fire Thursday. Sources have told Reuters an initial damage assessment projects the unit will be shut one to four months for repairs.
Exxon Mobil Corp's 502 Mbpd Baton Rouge refinery had seen no impact to operations as of midday Monday, a company spokeswoman said.
Motiva's 237 Mbpd Norco, Louisiana refinery has not cut production due to heavy rain over the weekend, sources familiar with plant operations said Monday.
Citgo Petroleum Corp's 427 Mbpd Lake Charles, Louisiana refinery has also seen no impact to its operations, a company official said.
Alon USA Energy's 80,000 bpd Krotz Springs, Louisiana refinery was operating at planned rates on Monday, a spokesman said.
President Barack Obama issued a disaster declaration on Sunday for flood-ravaged Louisiana.
As MRC wrote before, US petrochemical producer ExxonMobil plans to increase production of ultra-low sulfur fuels at its Beaumont refinery by approximately 40 Mbpd, further strengthening its integrated downstream portfolio while meeting environmental standards. Construction is scheduled for the second half of 2016 to install a selective cat naphtha hydrofining unit, which uses a proprietary catalyst system to remove sulfur while minimizing octane loss. Startup of the flexible technology is expected in 2018. Gasoline produced using this technology will meet the U.S. Environmental Protection Agency’s Tier 3 gasoline sulfur specifications.
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