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#HurricaneHarvey forces US largest refinery to shutdown

A US refinery Port Arthur, adjudged to be the Nation’s largest oil refinery is shutting down as Hurricane Harvey dents more devastation, CNN reports.

Motiva announced in a statement that it has started shutting its refinery in response to unending local flooding conditions. The plant won’t open until flood waters recede – it said.

Earlier on, Motiva had days before been steadily reducing production at the plant, and late yesterday, it was running at only 40% capacity.

The move became expedient when Harvey made a second landfall this morning near the Louisiana-Texas border – the border of both states in which Port Arthur sits. The new landfall according to National Hurricane Center is expected to bring winds of 30 to 40 mph and a 2- to 4-foot storm surge in the area.

Motiva’s decision follows a move by ExxonMobil (XOM) to shut down its oil refinery in Baytown, Texas on Sunday citing the discovery of roof damage at the plant which is the second-largest in the country – as the reason for their move.

Since Harvey struck on Friday, at least 12 refineries have currently gone offline, and flooding has obstructed a significant portion of the America’s refining capacity.

The reduced capacity which will result to significantly smaller amounts of oil that can be turned into gasoline and other products like jet fuel will likely cause a higher gasoline price due to restrictions on supply.

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