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US Coast Guard Says Hurricane May Shut Oil Ports

POSTED ON July 7, 2024 •   Business      BY Abiodun Saheed Omodara
Vehicles are carried by ferry across Aransas Pass as Hurricane Beryl moves closer to the Texas coast, Saturday, July 6, 2024, in Port Aransas, Texas. l Source: AP

The US Coast Guard has issued a warning about potential port closures in Texas, stretching from Corpus Christi to Houston, due to the impending arrival of Tropical Storm Beryl, which is anticipated to strengthen into a hurricane before reaching land at Port Lavaca by Monday morning.

These closures could temporarily halt the transportation of crude oil to refineries and the distribution of motor fuels from those facilities.

The Coast Guard captain of the port of Corpus Christi has imposed port condition "Yankee" on Saturday afternoon, limiting vessel movement in ports from Matagorda Bay, located 101 miles (163 km) southwest of Houston, to the US-Mexico border.

In preparation for Beryl's approach to the Texas coast, Citgo Petroleum Corp is reducing production at its 165,000 barrel-per-day Corpus Christi refinery.

The company plans to maintain minimal production at the refinery as the storm progresses towards a projected landfall at Port Lavaca, a critical pipeline hub.

Ahead of the storm's arrival, Shell Plc has completed the evacuation of personnel from its Perdido production platform in the US-regulated Gulf of Mexico.

Production on Perdido was ceased prior to the evacuations. Additionally, workers have been evacuated from the Whale platform, which is scheduled to commence production later this year.

Gibson Energy, operator of a major oil terminal in Corpus Christi, has stated that operations are ongoing but further measures may be taken based on the forecast.

As of Saturday, the storm was moving with maximum sustained winds near 60 mph (95 km/h), according to the National Hurricane Center.

The latest predictions indicate that Corpus Christi may experience the milder side of the storm with lower winds and minimal rainfall.

However, the potential for gale-force winds at the port is why the Coast Guard is imposing restrictions on vessel traffic or considering port closures.

Most of the offshore oil and gas production in the northern Gulf is situated east of Beryl's projected path.

The US Gulf of Mexico's offshore production amounts to approximately 1.8 million barrels per day.

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