NGL pipeline fire in Louisiana ongoing following explosion

HOUSTON (ICIS)–A natural gas liquids (NGL) pipeline in Louisiana has been blocked in after an explosion and fire occurred Thursday evening at a station operated by Phillips 66, the company told ICIS on Friday.

The station, is approximately 30 miles (48 km) west of New Orleans, Louisiana, the company said. The remaining product in the blocked in line continues to burn, and local and state emergency units are managing the response, Phillips 66 added.

The NGL pipeline runs from where the incident occurred to the southeast of Louisiana for 95 miles (153 km), the company said. It transports raw, Y-grade NGLs, which are a mix of ethane, propane, butane and natural gasoline that has yet to undergo separation.

Ethane prices jumped in Friday morning trading following news of the fire and pipeline block-in and were assessed by ICIS at 26.25 cents/gal, up by 2.9% from 25.50 cents/gal late Thursday. Propane rose by 1.8% on Friday morning, moving to 82.75 cents/gal from 81.25 cents/gal the afternoon before. N-butane rose by 3.5% to 126.5 cents/gal from 122.25 cents/gal, while natural gasoline climbed 4.6% to 119 cents/gal from 113.75 cents/gal.

The company confirmed six people were working at the site during the incident, three of whom were Phillips 66 employees. The other three were contract workers, two of whom were injured and taken to area hospitals. Phillips 66 said one of its employees remains missing.

Phillips 66 will hold a news conference Friday at 11:00 Houston time (17:00 GMT) along with local government representatives to give an update on the situation.