Tropical Storm Cindy emerged in the Gulf of Mexico earlier today with top winds of 45 miles per hour. So far, disruptions to oil and gas operations have been limited, Bloomberg reports.
The storm prompted watches and warnings along the Texas-Louisiana coast including at Sabine Pass, the site of the only active liquefied natural gas export terminal in the lower 48 states.
“While the storm may not be a whopper, it will influence shipping and may impact imports and exports of oil for next week,” writes Phil Flynn, a senior market analyst at Price Futures Group in Chicago.
Canada-based Enbridge Inc. evacuated nonessential workers from two platforms in the Gulf.
Royal Dutch Shell suspended “some well operations” in the region, though production is currently unaffected, says Curtis Smith, a company spokesman. The Midcontinent Independent System Operator declared a severe weather alert for the southern part of its electric grid, including Louisiana and Mississippi.
It’s been a year since the U.S. Gulf Coast took a hit. Tropical Storm Colin and Hurricane Hermine hit Florida last year. The last storm to hit the western Gulf was Tropical Storm Bill in June 2015.
Power outages caused by the storm and subsequent flooding may have the largest market impact.
“It’s essentially a demand destroyer for the Deep South,” says Matt Rogers, president of the Commodity Weather Group in Bethesda, Maryland. “No production concerns really.”
In a statement, Gov. John Bel Edwards says heavy rainfall tonight through Thursday continues to be the biggest threat to Louisiana. The Governor’s Office of Homeland Security and Emergency Preparedness continues to monitor the storm.
State and parish governments have mobilized agencies to provide resources when and if needed, and the Louisiana National Guard has moved high water vehicles and helicopters into areas that could potentially flood.
FEMA also is moving 125,000 meals and 200,000 liters of water into Louisiana, Edwards’ office says.
Mayor Sharon Weston Broome will provide an update on preparations for the storm at 3:45 p.m. at the Mayor’s Office of Homeland Security and Emergency Preparedness, 3773 Harding Blvd.
