Hurricane Milton Impacts Energy Infrastructure in Gulf of Mexico

By Marianna Parraga and Anushree Mukherjee

HOUSTON (Reuters) – At least one oil and gas platform in the U.S. Gulf of Mexico was shut on Monday and Florida ports imposed restrictions on vessel navigation as Hurricane Milton rapidly intensified.

Most energy infrastructure on the U.S. Gulf Coast, including oil and gas production facilities, liquefied natural gas (LNG) plants, and refineries, is expected to remain out of the storm’s path, but the closure of terminals could temporarily disrupt exports and imports.

Florida was the sixth largest state exporter of goods last year, according to the Office of the U.S. Trade Representative.

Meteorologists forecast 10 to 15 feet (3.05 to 4.57 meters) of storm surge, 140 miles per hour (mph) wind gusts, and more than 2 feet of rain in the area where Milton makes landfall, likely near Tampa.

"Milton is a potentially catastrophic Category-5 hurricane," the U.S. National Hurricane Center (NHC) said on Monday.

Some weakening is anticipated before Milton reaches the west coast of the Florida Peninsula by Wednesday, but it is expected to remain "an extremely dangerous hurricane through landfall," the NHC added.

President Joe Biden approved an emergency declaration for Florida. The White House urged those in the storm's path to make immediate preparations.

Electricity provider Duke Energy (NYSE:DUK) announced it was mobilizing about 10,000 responders in Florida due to anticipated power outages of over 1 million associated with Milton.

U.S. energy producer Chevron (NYSE:CVX) confirmed that all staff from its Blind Faith platform in the Gulf were transported and the facility was shut down. Blind Faith, located 160 miles (257.5 km) southeast of New Orleans, is Chevron’s deepest water development globally, producing oil from four wells and routing crude and gas to a platform moored in 6,500 feet of water.

Production from Chevron's other Gulf of Mexico assets remains normal.

Oil and gas producer Woodside (OTC:WOPEY) is monitoring weather conditions in the Gulf and plans to implement a response plan if needed.

The ports of Cedar Key and Sand Key in Florida were closed to vessel traffic, with Key West preparing to close early on Tuesday, according to the U.S. Coast Guard. Navigation restrictions were imposed at nearly all remaining Florida ports, including Miami, Port Everglades, Palm Beach, Tampa, St. Petersburg, Fort Myers, SeaPort Manatee, Panama City, St. Joe, Port Canaveral, Jacksonville, and Fernandina.

Other ports in Mississippi and Alabama that handle oil and fuel imports and exports, including Pascagoula and Mobile, remained open on Monday, the Coast Guard reported.

While LNG facilities on the U.S. Gulf Coast are mostly out of the storm's path, the U.S. exports minimal volumes of LNG in ISO containers from the ports of Miami and Fort Lauderdale, according to the U.S. Energy Department data.