Westlake Chemical Partners issued a statement regarding Hurricane Laura, which made landfall near plants in the Lake Charles, Louisiana area owned by Westlake Chemical OpCo LP, in which the Partnership owns a 22.8 percent interest.
The Partnership’s primary concern is for the safety of OpCo’s employees. The employees who stayed at OpCo’s facilities during Hurricane Laura are safe. OpCo has been conducting equipment assessments, following Hurricane Laura’s overnight move through the area.
Following initial facility assessments, OpCo believes it has incurred limited physical damage. A restart of OpCo’s facilities, which OpCo shut down as a precautionary measure in advance of the storm, will primarily depend upon the availability of electricity, industrial gases, and other feedstocks.
“We do not expect any material impact to OpCo or to the Partnership as a result of Hurricane Laura as, pursuant to OpCo’s Ethylene Sales Agreement with affiliates of Westlake Chemical Corporation (“Westlake Sponsor”), Westlake Sponsor is obligated to pay a margin and fixed costs for 95% of OpCo’s budgeted ethylene production, even following a force majeure event,” said Albert Chao, president and chief executive officer of the Partnership’s general partner.
