By Barbara Powell on 9/10/2021
(Bloomberg) –Phillips 66 could idle a New Orleans-area refinery that suffered a lot injury throughout Hurricane Ida that repairs could also be too pricey, in line with individuals acquainted with the operation.
Chief Government Officer Greg Garland is scheduled to go to the Alliance refinery within the suburb of Belle Chasse, Louisiana, subsequent week, mentioned the individuals, who requested to not be recognized as a result of the knowledge isn’t public. Firm spokesman Bernardo Fallas mentioned there’s no operational replace or timeline for restarting the power.
The refinery, which might course of greater than 250,000 barrels of crude a day, was shut on Aug. 28, the day earlier than Isa slammed into southeast Louisiana with ferocious winds and drenching rains. A 9-foot wall of water punched a gap within the refinery’s protecting levee and inundated the plant.
The damages could complicate Phillips 66’s efforts to discover a purchaser for an asset it was making an attempt to unload earlier than the storm due to “market circumstances and the evolving power panorama.”
In the meantime, Royal Dutch Shell Plc’s refinery and chemical plant north of the town will stay shut for a number of extra weeks so repairs may be carried out, individuals acquainted with the operation mentioned. Damages from Ida included wrecked pipes and insulation torn away by the winds.