USA: Hurricane Harvey Petrochemical Companies in the US Gulf Declare Force Majeure
Several petrochemical companies in the US Gulf region have declared force majeure (FM) because of Hurricane/now Tropical Storm Harvey. Although some are planning to restart, the storm is forecast to move towards Louisiana, were it will affect further petchem plants.
Houston/USA — On August 26, 2017, Hurricane Harvey made landfall in the United States as a Category 4 hurricane through the Gulf coast of Texas. Hurricane Harvey is the first major hurricane to make landfall in the US since 2005, with some initial damage estimates in the tens of billions.
As of the morning of August 28th, 54 counties have been declared disaster areas by the state of Texas and five by the state of Louisiana. The Federal Emergency Management Agency (FEMA) has also placed 24 of those counties under a disaster declaration. Hurricane Harvey, which has been downgraded to a tropical storm, is expected to remain in the Gulf area until at least August 31, 2017.
Meanwhile, several petchem companies in the Golf have declared Force Majeur due to the tropical storm. including BASF, Celanese, Formosa and Ineos.
Icis has published an interactive map of petrochemical plants in Texas and their current status.
Kroll Bond Rating Agency (KBRA) has evaluated exposure to these areas across its outstanding ratings spanning 79 private label transactions (PLS) and 22 agency credit risk transfer transactions (CRT). Download the Report