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Motiva, Exxon preparing East Texas refineries for storm, sources say (updated)

UPDATE 1-Motiva, Exxon preparing East Texas refineries for storm, sources say

Adds Exxon comment, storm forecast, Valero prep, details, background

By Erwin Seba

- Motiva Enterprises and Exxon Mobil Corp XOM.N are preparing their East Texas refineries for high winds and possible flooding as a developing tropical storm nears the U.S. Gulf Coast, people familiar with plant operations said on Monday.

Motiva and Exxon have not reduced production at their Port Arthur and Beaumont, Texas refineries, respectively, but they have secured loose items and equipment that can be blown by high winds or drift in flood waters should those be produced by the developing storm expected to make landfall on Tuesday, the sources said.

Exxon spokesperson Kelly Davila said on Monday the company was monitoring the storm and both its Beaumont and Baytown, Texas, refineries continued to operate normally.

A Motiva spokesperson did not reply to a request for comment.

Cheniere Energy LNG.N and Freeport LNG said they were monitoring the storm. Cheniere added it would take steps to modify operations if necessary, but there had been no impact on production so far.

Cheniere operates liquefied natural gas plants at Sabine Pass on the Texas-Louisiana border and Corpus Christi, Texas.

Freeport LNG's plant is in Freeport, Texas.

The U.S. National Hurricane Center forecasts the storm, currently called Tropical Depression 5, to become Tropical Storm Edouard before making landfall near Port Arthur on Tuesday.

Edouard is not expected to reach hurricane strength and is forecast to produce winds no more than 58 miles per hour (93 kph), according to the hurricane center.

Exxon on Monday afternoon activated its Incident Command System, the sources said.

Valero Energy Corp VLO.N has not modified operations at its 235,000-barrel-per-day (bpd) Port Arthur refinery, sources at the refinery said.

The Motiva Port Arthur refinery is the nation's largest with a crude oil processing capacity of 656,400 bpd. Exxon's Beaumont refinery can intake 612,000 bpd while the Baytown refinery, on the east side of Houston, can process 564,000 bpd.


(Reporting by Erwin Seba and Curtis Williams; Editing by Jamie Freed)

((erwin.seba@thomsonreuters.com; +1 832 746 4269; Reuters Messaging: erwin.seba.thomsonreuters.com@reuters.net))

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