Storm Alert – Code Red – August 31, 2021 PM

By Published On: August 31, 2021Categories: Daily Natural Gas Newsletter

Storm Alert – Hurricane Ida – Code Red

Damage assessments remain underway in the Louisiana and Mississippi markets. Power is still offline for many residents, and refineries are still down. Fuel concerns are beginning to spread outside the region due to tight carrier capacity and lack of refinery supply.

Two days after the storm, recovery efforts continue. Current indications suggest refineries will take weeks – not days – to resume normal production due to power outages. The Plantation Pipeline, which supplies the Southeast, has been reported as mostly offline today; improved flow is expected tomorrow.

Mansfield remains on Code Red in Louisiana and Mississippi, where conditions have not improved materially since this morning’s update. Mansfield is also moving to Code Orange in Alabama due to spreading supply challenges. In all three states, Mansfield is asking for 72-hour notice for new orders to allow time to secure supply and freight.

How Customers Can Help

  • Communicate changes in fuel demand. Please share any expected site closures, increased fuel requirements, etc as soon as possible with your Customer Relationship Manager. Open communication is critical to success.
  • Place orders 72-hours in advance when possible. Advanced notice provides more time to secure freight and supply, increasing the reliability of your delivery.
  • Monitor fuel levels before ordering. Some customers end up panic-buying during emergencies, ordering fuel that won’t fit in their tank. Panic buying leads to retains, which adds fees for the site and ties up critical fuel trucks.

 

This article is part of Daily Natural Gas Newsletter

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The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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