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As Winter Storm Enzo pummels the Gulf Coast with record snowfall and extreme cold, its freezing grip has forced significant disruptions in the region’s petrochemical and resin production facilities in Texas and Louisiana. This comes as several plants are already offline for planned maintenance.
The storm brought subfreezing temperatures, snow, and ice, which has led to the shutdown of several major petrochemical plants, causing power outages for many, and raising growing concerns over the storm’s impact to resin markets and total economic cost.
The Gulf Coast, home to a dense network of petrochemical facilities, is bearing the brunt of Enzo’s impact; monomer and resin prices have already seen some modest gains.
Preliminary estimates indicate that due to precautionary shutdowns or storm related outages, around 20 Billion pounds annual capacity of the Gulf Coast’s petrochemical production has been temporarily forced offline. Pending the duration of the shutdowns and restart challenges, this disruption is expected to have cascading effects on supply chains, potentially leading to price spikes in plastics, packaging materials, and other derivatives.
Since the storm became imminent last Wednesday, all grades of Polyethylene and Polypropylene prices have gained a solid penny, though most producers have halted fresh offers. Ethylene feedstock prices rose over 2 cents to $0.3625/lb representing a gain of over 6% week on week, while Propylene added a more modest $.0075/lb from last week to reach $.445/lb, both monomers have reached levels not seen since September 2024.
Known plant shutdowns include:
LyondellBasell Industries (LBI): Six production lines are offline, including facilities at Matagorda Bay and Chocolate Bayou with combined annual capacity of 1,040,000 tons producing High-Density Polyethylene (HDPE) production. These plants represent a significant share of the regional capacity for HDPE, critical for packaging and industrial applications.
Bayport - Baystar (La Porte, TX): The HDPE/LLDPE (linear low-density polyethylene) plant with total annual capacity 1,070,000 tons has ceased operations in response to freezing conditions.
INGLESIDE (Ingleside, TX): Steam cracker with annual capacity of 545,000 tons of Ethylene shut down on January 19, 2025, due to severe weather conditions.
LACC - LOTTE/WESTLAKE (Lake Charles, LA): Steam cracker with annual capacity of 1,000,000 tons of Ethylene shut down on January 19, 2025, due to the storm.
Indorama Ventures (Lake Charles, LA): Steam cracker with annual capacity of 440,000 Ethylene tons of Ethylene and 91,000 tons of Propylene , was shut down ahead of the storm on January 20, 2025, with plans to restart by the end of the week.
Indorama Ventures (Port Neches, TX): Steam cracker with annual capacity of 200,000 tons of Ethylene was also shut down ahead of the storm on January 20, 2025, with plans to restart by the end of the week.
BASF / TotalEnergies (Port Arthur, TX): Steam cracker with annual capacities of 1,000,000 tons of Ethylene and 550,000 tons of Propylene shut down on January 20, 2025, due to weather, with plans to resume operations by January 24, 2025.
INEOS (Chocolate Bayou, TX): Steam cracker with annual capacities of 1,750,000 tons of Ethylene and 475,000 tons of Propylene has implemented proactive winterization measures and remains on standby.
LyondellBasell (La Porte, TX): Steam cracker with annual capacities of 1,200,000 tons of Ethylene and 286,000 tons of Propylene experienced operational disruptions and a flaring event January 21, 2025.
LyondellBasell (Channelview, TX): Two steam crackers with annual capacities of 1,900,000 tons of Ethylene and 390,000 tons of Propylene are experiencing operational disruptions with a flaring event on January 21, 2025.
Equistar (La Porte, TX): Steam cracker with annual capacity of 1,200,000 tons of Ethylene and 480,000 tons of Propylene was in the process of shutting down due to severe weather-related malfunctions.
Reports suggest additional facilities may have been affected, though confirmation is pending:
Formosa Olefins (Point Comfort, TX): Steam cracker with annual capacity 2,745,000 tons of Ethylene and 870,000 tons of Propylene production facilities are said to be offline.
Indorama (Lake Charles, LA): Steam cracker with annual capacity 430,000 tons of Ethylene may have halted operations due to severe weather.
Enterprise (Mont Belvieu, TX): Propylene Dehydrogenation (PDH) units with a combined annual capacity of 4,320,000 tons of Propylene production experienced weather related operational issues amid a reported flaring event on January 21, 2025. Only PDH unit 1 was confirmed offline on January 22, 2025.
Not all facilities have succumbed to the storm’s impact:
ExxonMobil (Baytown and Beaumont, TX): These major refining and petrochemical hubs remain operational, thanks to extensive winterization efforts implemented after Winter Storm Uri.
Braskem and LyondellBasell (LBI): Both companies are implementing storm preparedness measures, with some facilities continuing operations but at reduced capacity.
In addition to industrial impacts, Winter Storm Enzo has left over 800,000 residents and businesses across Texas without power, according to the Electric Reliability Council of Texas (ERCOT). Ice accumulation on power lines and downed trees has exacerbated the outages, while increased demand for heating strains the grid.
Adding to the mounting challenges, the Port of Houston, one of the nation’s busiest maritime hubs, has temporarily ceased operations due to icy conditions and hazardous roads leading to the terminals. The shutdown disrupts the flow of goods and materials critical to both local and national supply chains, including exports of petrochemical products and imports of essential commodities. This port closure amplifies the economic ripple effects of Winter Storm Enzo, with potential delays cascading through various industries reliant on the port’s operations. According to a statement released by the Port of Houston, all facilities will resume normal operations on Thursday, January 23 and container terminal gates will open at 6 a.m.
Winter Storm Enzo underscores the persistent vulnerabilities in the Gulf Coast’s infrastructure. Despite investments in winterization following Winter Storm Uri in 2021, the region’s industrial and power sectors remain susceptible to extreme weather events.
Some facilities have implemented robust winterization measures, but the scale of this storm has exposed gaps. The Gulf Coast’s infrastructure was designed for hurricanes, not sustained freezing conditions.
Based on the duration of shutdowns, the economic impact of these shutdowns could ripple through global markets, particularly in chemicals and energy. Longer term, the storm raises questions about the adequacy of resilience planning and whether additional investments in infrastructure are needed.
As the storm’s icy grip tightens, the Gulf Coast faces a daunting recovery effort. Utility crews are working around the clock to restore power, while industrial operators assess damages and plan for restarts. For residents, the storm’s impact is a stark reminder of the challenges posed by extreme weather events.
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