Refineries remain operational along Mississippi after opening of Morganza Spillway
By Ben DuBose
Online Editor
Refineries along the Mississippi River remained operational on Monday following the opening of several bays off the Morganza Spillway in Louisiana.
It marks the first time the Morganza has been used since 1973, as US officials are seeking to take pressure off the swollen Mississippi with flood waters rushing downstream.
That could be welcome news for the US refining and petrochemical industries. There are 10 refineries located along the Mississippi with a combined capacity of about 2.4mn bpd, representing nearly 14% of US refining capacity.
Many are complexes with adjacent petrochemical plants.
Most facilities are located near the southern end of the river, particularly in the Baton Rouge-New Orleans region. Crests there are expected to become progressively higher throughout the week before finally peaking around May 23.
After that, it could still take two weeks for the river to fall below flood stage.
The peak of the flood crest is currently in Arkansas, but levels further south are already above flood stage.
Officials with the US Army Corps of Engineers said they planned to increase the rate of flow from the spillway over the next several days. The Morganza could remain open for the next 2-3 weeks, officials said.
On May 11, Louisiana Gov. Bobby Jindal said Alon’s 80,000 bpd refinery in Krotz Springs, Louisiana, would likely have to be shut if the Morganza were opened.
But on Monday, Alon chief operating officer Joseph Israel said the refinery will likely be spared from flooding and remain operational due to temporary levees build over the past two weeks.
The primary concerns remain with logistical issues, as treacherous river conditions are likely to threaten barge operations.
Late last week, US chemical shipper and inland barge firm Kirby warned of a greater-than-expected impact from the flooding.
In addition, ExxonMobil Pipeline Co. shut parts of two Louisiana crude pipelines amid increased concerns.
News agency Reuters reported on Monday that operating rates at ExxonMobil’s 504,500 bpd Baton Rouge refinery – the second-largest in the US – were cut by 10% after that plant’s Mississippi River docks were shut by high water.
Company officials did not immediately respond to requests for comment.
Several other regional refiners reported operations as usual, noting that they were continuing to monitor conditions.
The flooding is a result of the convergence of the Mississippi and Ohio rivers in Cairo, Illinois, a region which saw significant rainfall in prior weeks.
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