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Released January 15, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--You heard it's cold outside, right? Even if you live under a rock, that rock probably isn't doing you much good: More than 75% of the U.S. is expected to see freezing temperatures over the coming week. Few are likely to see the minus 71 degrees reported in northern Montana over the weekend, but dangerous lows could hit areas as far south as Mississippi, where the governor issued a state of emergency Sunday.
The intense weather froze natural gas wells in various parts of the U.S. at a time when the resource is most needed: U.S. natural gas demand, including exports, was expected to hit 164.6 billion cubic feet per day on Monday and 171.9 billion cubic feet per day Tuesday, according to Reuters, which would break the 162.5 billion-cubic-foot-per-day record set in December 2022 during Winter Storm Elliott.
Click on the image at right for a map North American weather trends for Monday morning, featuring PADD III refineries and petrochemical plants, from Industrial Info's GeoXplorer tool.
Texas, which has seen its fair share of extreme heat and cold in the past few years, is looking at electricity demand that could top the record high from 2023's scorching summer. The state's power grid operator, the Electric Reliability Council of Texas (ERCOT), warned Texans could face a shortfall in power supplies early this week: It expects demand to peak at about 85,564 megawatts (MW) early Tuesday, which would exceed the 85,508-MW record from August.
ERCOT urged Texans to conserve electricity use, if safe to do so, on Monday, and asked statewide agencies "to implement all programs to reduce energy use at their facilities until at least 10 a.m. [Tuesday]." However, the grid operator indicated there should be enough power to avoid large-scale outages.
The 1,354.3-megawatt (MW) Unit 1 at the South Texas Project Nuclear Power Plant in Bay City, Texas, was taken offline due to a frozen sensor on a feedwater line. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant Database can learn more from a detailed plant profile.
Occidental Chemical Corporation (OxyChem), a subsidiary of Occidental Petroleum Corporation (NYSE:OXY) (Houston, Texas), was among the companies to shut down or reduce output at several key facilities in Texas in preparation for the harsh weather. Its vinyl chloride monomer (VCM) plant in Deer Park, Texas, was operating at very low reduced rates, while other units at the plant were taken offline; subscribers to Industrial Info's GMI Chemical Processing Plant Database can learn more from a detailed plant profile.
Occidental expects to restart these currently closed facilities later this week, when freezing temperatures have passed:
"There has been an odd mix of who is going down," said Trey Hamblet, Vice President for Chemical Research at Industrial Info. "This storm has lacked heavy winds and large amounts of moisture. So far, this has aided producers in keeping their plants and refineries operational. The loss of power would be the big downfall for these plants."
One of the biggest incidents that could affect the U.S. northeast actually happened last Monday, when Dominion Energy Incorporated's (NYSE:D) (Richmond, Virginia) 1,253-megawatt (MW) Millstone Nuclear Power Station in Waterford, Connecticut, manually tripped offline due to a coolant leak in the reactor. According to Dominion, Millstone powers up to 2 million homes across New England; the outage is not expected to end until Saturday. Subscribers can learn more from a plant profile.
Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) offered some good news on the refining front: Its 190,000-barrel-per-day (BBL/d) refinery in Memphis, Tennessee, remained operational, despite severe cold weather conditions moving through the state. Subscribers can learn more in a detailed plant profile.
A Winter Storm Warning is in effect for middle Tennessee until early Tuesday. Temperatures in southern Kentucky and Tennessee could remain below freezing until Thursday, according to local media.
PBF Energy Incorporated (NYSE:PBF) (Parsippany, New Jersey) said its 175,000-BBL/d refinery in Delaware City, Delaware, remains up and running, as plant personnel prepare for a pending ice storm. Maintenance on the 80,000-BBL/d Fluid Catalytic-Cracking Unit (FCCU), which is expected to begin in late February or early March, will now last 45 days instead of 30 days, as previously expected. Subscribers can learn more from a detailed plant profile and project report on the maintenance.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
The intense weather froze natural gas wells in various parts of the U.S. at a time when the resource is most needed: U.S. natural gas demand, including exports, was expected to hit 164.6 billion cubic feet per day on Monday and 171.9 billion cubic feet per day Tuesday, according to Reuters, which would break the 162.5 billion-cubic-foot-per-day record set in December 2022 during Winter Storm Elliott.
Click on the image at right for a map North American weather trends for Monday morning, featuring PADD III refineries and petrochemical plants, from Industrial Info's GeoXplorer tool.Texas, which has seen its fair share of extreme heat and cold in the past few years, is looking at electricity demand that could top the record high from 2023's scorching summer. The state's power grid operator, the Electric Reliability Council of Texas (ERCOT), warned Texans could face a shortfall in power supplies early this week: It expects demand to peak at about 85,564 megawatts (MW) early Tuesday, which would exceed the 85,508-MW record from August.
ERCOT urged Texans to conserve electricity use, if safe to do so, on Monday, and asked statewide agencies "to implement all programs to reduce energy use at their facilities until at least 10 a.m. [Tuesday]." However, the grid operator indicated there should be enough power to avoid large-scale outages.
The 1,354.3-megawatt (MW) Unit 1 at the South Texas Project Nuclear Power Plant in Bay City, Texas, was taken offline due to a frozen sensor on a feedwater line. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant Database can learn more from a detailed plant profile.
Occidental Chemical Corporation (OxyChem), a subsidiary of Occidental Petroleum Corporation (NYSE:OXY) (Houston, Texas), was among the companies to shut down or reduce output at several key facilities in Texas in preparation for the harsh weather. Its vinyl chloride monomer (VCM) plant in Deer Park, Texas, was operating at very low reduced rates, while other units at the plant were taken offline; subscribers to Industrial Info's GMI Chemical Processing Plant Database can learn more from a detailed plant profile.
Occidental expects to restart these currently closed facilities later this week, when freezing temperatures have passed:
- Polyvinyl Chloride (PVC) Resins plant in Pasadena; see plant profile
- PVC Resins plant in Deer Park; see plant profile
- Ethylene Dichloride (EDC) plant in Deer Park; see plant profile
- Battleground Chlor-Alkali plant in La Porte; see plant profile
"There has been an odd mix of who is going down," said Trey Hamblet, Vice President for Chemical Research at Industrial Info. "This storm has lacked heavy winds and large amounts of moisture. So far, this has aided producers in keeping their plants and refineries operational. The loss of power would be the big downfall for these plants."
One of the biggest incidents that could affect the U.S. northeast actually happened last Monday, when Dominion Energy Incorporated's (NYSE:D) (Richmond, Virginia) 1,253-megawatt (MW) Millstone Nuclear Power Station in Waterford, Connecticut, manually tripped offline due to a coolant leak in the reactor. According to Dominion, Millstone powers up to 2 million homes across New England; the outage is not expected to end until Saturday. Subscribers can learn more from a plant profile.
Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) offered some good news on the refining front: Its 190,000-barrel-per-day (BBL/d) refinery in Memphis, Tennessee, remained operational, despite severe cold weather conditions moving through the state. Subscribers can learn more in a detailed plant profile.
A Winter Storm Warning is in effect for middle Tennessee until early Tuesday. Temperatures in southern Kentucky and Tennessee could remain below freezing until Thursday, according to local media.
PBF Energy Incorporated (NYSE:PBF) (Parsippany, New Jersey) said its 175,000-BBL/d refinery in Delaware City, Delaware, remains up and running, as plant personnel prepare for a pending ice storm. Maintenance on the 80,000-BBL/d Fluid Catalytic-Cracking Unit (FCCU), which is expected to begin in late February or early March, will now last 45 days instead of 30 days, as previously expected. Subscribers can learn more from a detailed plant profile and project report on the maintenance.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
