Zeta's path seen sparing major US chemical operations

Houston — US chemical producers implemented storm preparation plans as Hurricane Zeta approached southeast Louisiana on Oct. 28, but none expect serious impacts from the fast-moving storm given its narrowed path toward New Orleans, according to company spokespersons.

"Certainly our plants in Geismar and Plaquemine are monitoring the development of Hurricane Zeta," Westlake Chemical spokesman Chip Swearngen said in an email Oct. 28. "It is forecast to hit the state around New Orleans and toward the east, which should mean minimal impact, if any, on our plants in the river parishes south of Baton Rouge."

Dow Chemical spokeswoman Ashley Mendoza said in an email Oct. 28 that Dow had no plans to adjust production or reduce staffing at Louisiana plants ahead of Zeta's landfall, though the company was monitoring the storm and stood ready to respond as needed.

RELATED: Two-thirds of US Gulf crude offline ahead of Category 2 Hurricane Zeta

RELATED: Industrial gas demand to resume growth trajectory as hurricane season nears end

Zeta, the third hurricane to hit Louisiana in nine weeks, strengthened to a Category 2 storm Oct. 28 with winds nearing 110 mph -- closing in on the low end of Category 3 strength -- on its approach toward New Orleans.

Zeta's probable track, or cone, on Oct. 28, as the storm approached New Orleans, leaves major chemical production facilities along the Mississippi River out of its immediate path. As such, olefin and polymer markets showed little to no reaction to the storm, market sources said.

The National Hurricane Center expects the storm to make landfall near Port Fourchon toward New Orleans before crossing into Mississippi and Alabama.

Several chemical companies operate plants in Geismar, about 66 miles east of New Orleans, and Plaquemine, another 20 miles east of Geismar.

Those include Westlake's Geismar and Plaquemine complexes, which include two vinyl chloride monomer plants with a combined capacity of 975,222 mt/year and two polyvinyl chloride plants with a combined capacity of 1.13 million mt/year. Both complexes also have upstream chlor-alkali facilities.

Plaquemine also is home to Shintech's Louisiana PVC complex, where construction is underway to expand PVC output by 58% to 1 million mt/year.

In addition, Dow Chemical operates a complex in Plaquemine with two crackers that have a combined capacity of nearly 1.5 million mt/year, and NOVA Chemical has a 928,000 mt/year merchant cracker in nearby Geismar.

Shell Chemical also has refining and chemical operations in Norco, which was in the storm's track, as well as Geismar, Convent and Mobile, Alabama.

Spokesman Curtis Smith said Shell aims to maintain operations at those facilities as Zeta passes, but could shut down if deemed necessary.

Hurricanes Laura and Delta both hit Lake Charles, Louisiana, about 136 miles east of Plaquemine, on Aug. 27 and Oct. 9, respectively. Laura, a Category 4 storm with 150 mph winds, severely damaged major electricity transmission lines, leaving chemical complexes operated by Westlake, Sasol, LyondellBasell and Lotte Chemical offline for weeks.

Restarted units had to shut down again when Delta hit six weeks later, mirroring Laura's path, but operations have since largely resumed.