Some resin sites beginning to restart production as Francine moves north | Plastics News

Oct 27, 2024

Production of PVC resins and other materials could be affected by the impact of Hurricane Francine, which made landfall at Terrebonne Parish, La., on Sept. 11 as a Category 2 storm.

Francine was downgraded to a tropical depression on Sept. 12, but was still bringing heavy rains to parts of Mississippi, Alabama and the Florida panhandle, according to the National Hurricane Center.

Market sources said most production of resins and related materials was taken down in advance of the storm.

Analyst David Barry of PetroChem Wire in Houston said, based on weather observations, he did not believe the storm had a major impact on petrochemical operations. But he added that since ExxonMobil and other producers shut down operations along the Mississippi River as a precaution, the market "could see a few days of lost production for the shutdown and startup processes."

In a Sept. 12 email to Plastics News, a spokesperson for Dow Inc. in Midland, Mich., said the firm's sites already were "safely resuming normal operations."

"Dow has a robust weather preparedness plan and implemented procedures and protocols as Hurricane Francine approached," the spokesperson said. "We are working closely with our Dow families and local partners to help support our colleagues and communities recover from any damages as a result of the storm."

Dow makes polyethylene resins as well as ethylene and propylene feedstocks in Taft, La. The firm also makes PE resins and other materials — including PET feedstock ethylene oxide — in Plaquemine, La.

Shintech Inc., Westlake Corp. and Formosa Plastics Corp. USA all operate major PVC resin units in Louisiana.

In an email to PN, a spokesman for Formosa in Livingston, N.J., declined to comment on the current storm, but said the firm "has procedures to address severe weather and will implement those procedures." Officials with Shintech and Westlake could not be immediately reached for comment.

There appears to be no significant damage or flooding at ExxonMobil's Baton Rouge area facilities, a company spokesperson said in an email to PN. "Our thoughts are with all those impacted," the spokesperson added. "Our Baton Rouge area facilities are operating as normal [and] we continue to meet customer commitments."

Regional PVC prices had declined in August because of decreased construction activity. Any production outages from the storm could tighten PVC supplies and potentially result in higher prices.

On a LinkedIn post, officials with the C-MACC consulting firm in Houston said that while some petrochemical markets could tighten from Francine's impact, the potential shutdown of ethylene derivative units, including PVC, could loosen Gulf Coast ethylene markets, since Louisiana is net short on ethylene.

A storm report from Chemical Week said 43 percent of U.S. PVC capacity and 35 percent of capacity for vinyl chloride monomer feedstock is based in southern Louisiana. The state also is home to 25 percent of U.S. ethylene capacity, 22 percent of PE capacity, 19 percent of polymer-grade propylene and 21 percent of polypropylene production, according to Chemical Week. That includes PE and PP resins made by ExxonMobil Chemical in Baton Rouge and PP resins made by Pinnacle Polymers in Garyville.

Francine marks the second storm to hit the Louisiana region that is home to most U.S. petrochemical production this year, following Hurricane Beryl in July. Utility company Entergy had warned that Francine could lead to power outages lasting for anywhere between two and seven days.

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