Hurricane Francine Triggers Evacuations and Oil and Gas Shutdowns in Louisiana, Reports Reuters

By Gary McWilliams and Marianna Parraga

HOUSTON – Francine intensified into a hurricane on Tuesday night, prompting residents in Louisiana to evacuate inland and oil and gas companies to halt production in the Gulf of Mexico.

While the storm developed more slowly than expected, it still threatened to strike the Louisiana coast on Wednesday with dangerous winds, heavy rainfall, and storm surges reaching up to 10 feet (3 meters).

On Tuesday night, maximum sustained winds of the hurricane reached 75 miles per hour (120 kph), classifying it as a Category 1 hurricane on the five-step Saffir-Simpson scale. The storm was moving northeastward off the southern Texas coast and was expected to make landfall near Thibodaux, Louisiana. Its trajectory poses a significant challenge for liquefied natural gas (LNG) export facilities recently established in the area.

Energy companies reported shutting down 412,070 barrels per day of oil production, which accounts for approximately 24% of the total output from the U.S. Gulf of Mexico. Staff were evacuated from 130 production platforms, as stated by the U.S. offshore regulator Bureau of Safety and Environmental Enforcement. Additionally, around 494 million cubic feet per day, or 26% of Gulf natural gas production, was offline.

The region contributes about 15% of U.S. oil production and 2% of natural gas output. Concerns over production disruptions and their potential effects on LNG facilities caused U.S. natural gas prices to rise about 3%, while global oil demand worries led futures to drop more than 4%.

Oil refiners and fuel distributors along the Louisiana coast were making preparations to endure the storm. Citgo Petroleum announced that its Lake Charles oil refinery was activating its hurricane protocols.

The port of Brownsville, located near the border with Mexico, and several smaller terminals in Texas were closed, while other ports, including Houston, Galveston, Corpus Christi, Texas City, and Freeport, operated under restrictions. Vessel traffic restrictions were imposed from Texas to Louisiana, as reported by the Coast Guard.

In New Orleans, port officials were readying to shut down terminal and railroad operations, with plans to resume service on Thursday after assessing any damage. Navigation at ports in Houma, Morgan City, and the Louisiana Offshore Oil Port was halted, according to the U.S. Coast Guard. Similarly, preparations began at ports in Mississippi and Alabama, including Pascagoula, although they remained open on Tuesday. After making landfall, Francine is anticipated to move into Mississippi on Wednesday night or Thursday.

Major oil producers, including Exxon Mobil, Shell, and Chevron, withdrew offshore staff and reduced production levels. Pipeline operator Enbridge also evacuated personnel from several platforms in the Gulf.

Louisiana hosts three of the nation’s seven major operating LNG export plants, and new facilities such as Sempra’s Cameron LNG, Venture Global LNG’s Calcasieu Pass LNG, and Tellurian’s Driftwood LNG development lie directly in Francine’s path.

Natural gas supply to the Cameron LNG export plant decreased on Tuesday to 1.3 billion cubic feet per day, down from approximately 2.2 billion cubic feet per day on Monday, according to data. Freeport LNG, which operates the second-largest U.S. export plant for super-chilled gas, confirmed it had begun storm preparations at its Texas facility, though details were not disclosed.