INSIGHT: Ageing US water infrastructure threatens chem operations
Al Greenwood
16-Feb-2023
HOUSTON (ICIS)–The winter storm in December that tested the resilience of US chemical plants revealed that they could become increasingly vulnerable to the nation’s ageing water infrastructure.
- Calumet Specialty Products could not restart its refinery in Shreveport, Louisiana, because it lacked the water services needed to restart
- Civil engineers gave low grades to the drinking-water infrastructure in the states of Texas (C-) and Louisiana (D-). Both states are home to much of the petrochemical and refining capacity in the US
- Fundamental chemical processes such as steam cracking and steam methane reformer rely on water
CALUMET AND
SHREVEPORT
Even though Shreveport
is not a large city and Calumet’s refinery is
not especially big, they illustrate how
vulnerable refiners and petrochemical plants
could be to failures in the nation’s water
system.
At Shreveport, breaks in the city’s water distribution system and leaks in residential pipes caused water pressure to plummet, said William Daniel, water and sewage department director for the city. He made his comments in a television interview.
Daniel attributed the failures to the age of the city’s infrastructure. It is 80 years old and it is in some cases 30 years past its useful life.
“This is a generational issue of not taking care of your assets. Unfortunately, we’ve reached that point in time where our system is so fragile, this type of weather disrupts the lives of the citizens of Shreveport,” Daniel said in the interview.
Calumet said the problems with the city’s infrastructure delayed the restart of Calumet’s refinery in Shreveport.
AILING WATER
INFRASTRUCTURE
Water is an
integral raw material for chemical plants and
refineries.
For refineries alone, 60% rely on municipal water services, said Jennifer Sloan Ziegler, project manager and engineer at Cypress Environment & Infrastructure. She is also the vice president of the ASCE’s Environmental and Water Resources Institute (EWRI).
The ASCE regularly publishes report cards on the nation’s infrastructure. In its 2021 report, the ASCE estimated that a water main breaks every two minutes and the US loses 6bn gal/day (23bn litres/day) of treated water each day. The nation as a whole received a C- for its drinking-water infrastructure.
TEXAS AND LOUISIANA WATER
INFRASTRUCTURE
Like the US as a
whole, Texas’s water infrastructure received a
C- in 2021.
The ASCE did note improvements in water conservation, planning and management. The state has increased fundings and provided additional financial support.
However, the state’s water supply relies on surface water for 62% of its needs, the report said. These sources are over-allocated, and they can become significantly depleted during droughts.
In addition to droughts, hurricanes can disrupt water supplies. In 2017, Hurricane Harvey shut down more than 200 public water systems, and 61 were rendered inoperable, the report said. Some were destroyed.
The Texas state water plan identified $63bn in capital costs during the next 50 years. Out of that, $36.2bn would require state financing and $26.8bn would require funding from revenue raised by water utilities. The report card did not say if the water utilities would raise enough revenue to cover the $26.8bn.
The report card for Louisiana was for 2017, and it warned of ageing and deteriorating water systems. It cited a database from the Louisiana Department of Health (DHH), which showed that 58% of the state’s drinking-water infrastructure was built before 1960.
The need for maintenance will become more frequent because much of the drinking water infrastructure is older than its intended design life, the report said.
RECENT SPENDING LAWS WON’T ADDRESS
GAP
The recently passed
Bipartisan Infrastructure Law sets aside $55bn
for water infrastructure,
according to the consultancy McKinsey.
However, the law is a one-time infusion of funds, Sloan Ziegler said. Even when it is combined with the long-term funding already in place, the US still comes up short.
“The problem is our systems have been chronically underfunded, and they have been chronically underfunded for decades,” she said.
The nation’s water infrastructure has many points that need upkeep and repair.
Machines need to pump water from wells or out of above-ground reservoirs. The water needs treatment, which is a mechanical process.
Distribution systems rely on water towers. Flat areas rely on pump stations. Pipes wear out.
GROWING DEMAND FROM
HYDROGEN
If the US continues to
build green-hydrogen plants, then that would
impose more demands on the nation’s water
infrastructure.
Green hydrogen is produced by splitting water molecules into hydrogen and oxygen in electrolysers.
The US has already adopted legislation to support green hydrogen plants.
The Bipartisan Infrastructure Law, includes up to $7bn to establish six to 10 hydrogen hubs in the US.
The Inflation Reduction Act provides tax credits for hydrogen production based on the plants’ emissions of carbon dioxide (CO2).
2022 WINTER STORM
PERFORMANCE
During
the latest freeze, Texas and Louisiana
avoided the widespread power outages and
disruptions in gas supplies that made the 2021
winter storm Uri so destructive. Winter storm
Elliott provided a test to show how well the
petrochemical plants and refineries along the
Gulf Coast would fare against freezing
temperatures.
Dow said it avoided operational problems during the winter storm because of steps it took after winter storm Uri.
On the other hand, TotalEnergies shut down its polypropylene (PP) units at La Porte, Texas, even though the company said it took all precautions possible through freeze protection and heat tracing.
Insight article by Al Greenwood
Thumbnail shows water being sprayed on crops. Image by FLPA/REX/Shutterstock.
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
Partnering with ICIS unlocks a vision of a future you can trust and achieve. We leverage our unrivalled network of industry experts to deliver a comprehensive market view based on independent and reliable data, insight and analytics.
Contact us to learn how we can support you as you transact today and plan for tomorrow.