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Damaged oil refinery closing; parish weighs economic impacts – New Orleans, Louisiana

New Orleans, Louisiana 2021-11-10 13:59:46 –

A Louisiana oil refinery flooded during Hurricane Aida will be closed, become a storage terminal, and assess the potential economic consequences of losing one of the region’s largest employers. Encourage local leaders.

Phillips 66 announced on Monday that it will close a large Alliance refinery along the banks of the Mississippi River, just south of New Orleans.Times Pikayun / New Orleans Advocate report.. The Houston-based company said the massive damage caused by the August 29 storm was too expensive to repair.

Converting part of the existing infrastructure on 2,400 acres of land into a storage and transportation terminal could affect most of the 900 employees and contractors currently working there.

“Phillips 66 is in the process of determining how many employees will remain in the terminal,” spokesman Bernard Faras told the press. “Some employees may be offered positions on other sites in their portfolio.”

President Kirk Lepine of the Parish of Plaquemins called the news “a persistent punch for the community.”

“If you’re from Plaque Mins, you know who you work there or who worked there,” he said. “My brother retired from there.”

A storm surge from Ida broke through the refinery’s internal embankment wall, covering many of the facilities with about five feet of water. Phillips 66 went on sale a few days before the hurricane because of poor market conditions. However, the damage caused the value of the plant to drop to about $ 200 million, ending the attempt to sell it for about $ 500 million.

The Berchas site, built in 1971, has long been the parish’s largest source of property tax revenue, according to Plaquemins assessor Belinda Hazel. The company will pay $ 7.4 million out of the parish’s approximately $ 60 million this year.

Tax revenues will not plummet immediately, but if experts reassess the reused facilities, tax revenues are expected to drop significantly, Hazel said. “The more direct impact will be that people will move and homes will hit the market,” she added.

Other projects, such as the $ 8.9 billion liquefied natural gas plant proposed by Venture Global, have the potential to offer more work in the region. Federal regulators said at the end of October, the 650-acre site planned for the plant could begin to be cleared. The project provides about 2,200 jobs during construction, but produces only about 250 permanent jobs.

David Dismukes, executive director of the Louisiana State University Energy Research Center, said the closure of the Alliance Refinery wasn’t unexpected, but it’s still a big blow.

“It’s not easy to find something that can replace that big infrastructure with that level of employment,” he told the press. “There is nothing too promising for the Plaquemins Parish.”

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Damaged oil refinery closing; parish weighs economic impacts Source link Damaged oil refinery closing; parish weighs economic impacts

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