Some US chems to shut down Texas plants ahead of freezing weather

Al Greenwood

20-Dec-2022

HOUSTON (ICIS)–Some plants in Texas have started to shut down operations in preparation of a cold front that could send temperatures below freezing on Thursday night.

Cold weather can disrupt operations on the Gulf Coast because many of the plants are not equipped to deal with long periods of freezing temperatures.

By Thursday night, the temperature will fall to levels that in the past had shut down chemical plants in 2021mid-January 2018 and in 2011.

During the freeze in 2018, temperatures were 20-37 degrees Fahrenheit on 17 January and 26-38 degrees on 18 January, according to the Weather Underground. In 2011, temperatures were 24-34 degrees Fahrenheit from 2-4 February.

For this week, meteorologists are not forecasting rain or snow in Houston, so icy roads should not disrupt highway traffic. The major railroad companies have not issued warnings for their lines in Texas or Louisiana.

However, the railroad companies had issued warnings for other parts of the US that will suffer from bad winter weather.

ANNOUNCED SHUTDOWNS

  •  Indorama Ventures plans to shut down its ethylene oxide (EO) and ethylene glycol (EG) plants in Clear Lake, Texas, out of precaution for the cold weather, according to market sources.
  • Chevron Phillips Chemical is taking down two crackers in at Cedar Bayou, Texas.
  • Braskem is shutting down its polypropylene (PP) operations in Texas.
  • Butadiene (BD) producer TPC Group will shut down critical equipment and ancillary systems. It will begin reducing rates on Thursday.
  • Acrylic acid and acrylates esters producer American Acryl began the process of shutting down its Bayport facility in Pasadena.

Other companies have started their winter protocols, but they had not announced any shutdowns. These companies include BASF, INEOS and Sasol.

LyondellBasell declined to comment. Formosa declined to comment. Covestro declined to comment.

GULF COAST NOT PREPARED FOR COLD
Few chemical plants in Texas and along the Gulf Coast are not equipped to tolerate freezing temperatures because it rarely gets that cold in the region.

Extremely low temperatures can affect the physical properties of liquids and gasses, such as freeze points, viscosity and moisture content.

They can also disrupt the performance of utilities, from water and compressed air to heat-transfer fluids.

Still, companies can take steps in advance to protect their plants from freezing weather, such as protecting exposed pipes, tubing, valves and connections. The most cost-effective step is insulation, which can slow heat loss. The most effective is steam tracing.

Steam tracing consists of small piping that is connected to a steam header. This small piping is wrapped around the larger pipes that need protection against cold temperatures.

If the plants do not have time to take these steps, then they may choose to shut down their plants safely to protect them from damage.

The following table shows the forecast for Houston, home of many of the Gulf Coast’s petrochemical plants and refineries.

Day Thur high Thur low Fri high Fri low Sat high Sat low Sun high Sun low Mon high
Celsius 18.3 -7.8 -1.7 -5.6 2.8 -3.9 6.1 -0.6 12.2
Fahrenheit 65 18 29 22 37 25 43 31 54

Source: National Weather Service

For comparison, the following table shows the temperatures during the last freeze that hit Texas in February 2021.

Day 14 Feb high 14 Feb low 15 Feb high 15 Feb low 16 Feb high 16 Feb low 17 Feb high 17 Feb low 18 Feb high 18 Feb low
Celsius 3.3 -2.2 -2.8 -7.8 2.2 -9.4 3.9 0.6 6.7 0.0
Fahrenheit 38 28 27 18 36 15 39 33 44 32

Source: Weather Underground

TEXAS SEEKS TO AVOID ANOTHER STATEWIDE BLACKOUT
The winter storm of 2021 was so disruptive to Texas because it also caused most of the state to lose power. The electrical grid had nearly suffered from a complete collapse.

The Electric Reliability Council of Texas (ERCOT), which manages most of the state’s power grid, said capacity should be more than sufficient to meet demand, as shown in the following chart.

Source: ERCOT

Since 2021, Texas had taken steps to make its power grid more resilient  against freezing temperatures. This week will test weather those steps were adequate.

The state’s natural-gas infrastructure will also face a test. If freezing temperatures disrupts gas shipments, then that could interrupt power generation and fuel deliveries to petrochemical plants and refineries.

HIGH SUPPLIES, WEAK DEMAND
Any plant shutdowns would take place at a time when demand has already been falling because of a weakening economy and the seasonal lull that typically happens at the end of the year.

US manufacturing activity fell into contractionary territory for the first time in 30 months in October, and economists expect the nation well enter a mild recession in 2023.

At the same time, companies have been starting up new plants in the US, which increased supplies.

OUTSIDE OF GULF COAST
The railroad company Union Pacific (UP) warned about a winter storm and snowfall in the US states of Nebraska, Kansas, Iowa, Missouri, Illinois, Minnesota and Wisconsin. UP warned of possible delays of 24-48 hours.

The railroad company CSX warned of heavy snow and freezing rain in the Midwest, the Ohio valley and the northeastern US. So far, CSX has not reported any service disruptions, and it has not warned of any possible delays.

Additional reporting by Antulio Borneo, John Donnelly, Amanda Hay, Zachary Moore and Melissa Wheeler

Thumbnail shows ice from the winter storm of 2021. Image by David J Phillip/AP/Shutterstock

Focus article by Al Greenwood

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?