US Texas Gulf Coast chem plants preparing for freeze

HOUSTON (ICIS)–Chevron Phillips Chemical is among the chemical companies along the US Texas Gulf Coast halting production ahead of a cold front that is expected to bring below-freezing temperatures on Thursday night.

Some companies have announced plans to continue operating during the cold spell. Others have earlier announced plans to shut down as a precaution.

Regarding paraxylene (PX), ExxonMobil said it had no plans to proactively take down any units.

Dow made a general comment saying that its plants are running safely based on demand levels and its freeze preparation plans.

Eastman said it is monitoring the weather. If need be, it will implement its operating plans for severe weather.

Shell said it will continue to monitor conditions on the Texas power grid.

Failures on the power grid and the state’s natural gas infrastructure caused widespread plant shutdowns in Texas in February 2021.

ANNOUNCED SHUTDOWNS

• Chevron Phillips Chemical is undergoing shutdown procedures for the HDPE lines at its Pasadena, Texas site ahead of a potential sitewide shutdown due to freezing temperatures, according to a filing with the Texas Commission on Environmental Quality (TCEQ). The company did not immediately respond to a request for comment.
• 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, Formosa and 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	Mon low
Celsius	13.3	-8.9	-0.6	-6.1	3.9	-3.9	7.2	-1.1	12.2	2.2
Fahrenheit	56	16	31	21	39	25	45	30	54	36

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 disrupt 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 will 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 on Monday 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 on Monday 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 Al Greenwood, Antulio Borneo, John Donnelly, Amanda Hay, Deniz Koray, Zachary Moore and Melissa Wheeler

Thumbnail shows cold weather from the winter storm that hit Texas in 2021. Image by Ralph Lauer/ZUMA Wire/Shutterstock.