The Storm Isaac and Gas Prices

Tropical Storm Isaac will force shutdowns of 12 coastal refineries in Louisiana, Alabama and Mississippi that together account for 16 percent of the nation’s gasoline production capacity.
As a result, gasoline prices traded near a four-month high as Gulf refineries shut down on Monday.

Valero Energy Corp. is shutting the St. Charles and Meraux refineries in Louisiana and refinery production will resume as soon as it is safe to do so.

Phillips 66 is temporarily shutting its 247,000 barrel-a- day Alliance refinery at Belle Chasse, Louisiana. Exxon Mobil Corp began closing operations at the Chalmette plant near New Orleans.
Marathon Petroleum Corp refinery in Louisiana is operating at reduced rates. Norco and Covent refineries in Louisiana are also running at lower rates, as is Exxon Mobil’s Baton Rouge plant.

Companies including BP, ConocoPhillips, Murphy Oil Corp. and Gulfport Energy Corp. were evacuating personnel or halting production at rigs and platforms. Producers shut in about 500 million cubic feet of gas scheduled to flow on the interstate Transco pipeline.

The Louisiana Offshore Oil Port, the largest point of entry for crude coming into the U.S., stopped offloading tankers yesterday at the marine terminal, according to its website. Louisiana’s Port Fourchon, a base for support services to the Gulf’s deep-water oil and gas facilities will shut today.

Operators of several offshore natural-gas pipelines in the Gulf of Mexico said they will be unable to meet contractual obligations to customers as Isaac approaches. Kinder Morgan Inc.’s Southern Natural pipeline, DCP Midstream LLC’s Dauphin Island gathering system and Enbridge Inc.’s Mississippi Canyon and Nautilus lines declared force majeure.

The U.S. Coast Guard issued shipping restrictions for ports in Louisiana, Alabama and Florida. The port of Mobile in Alabama was scheduled to close yesterday, and no vessels may enter or remain in the Port of New Orleans without permission from the captain of the port, the Coast Guard said.

Derived from Multiple Sources

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