Tropical Storm Francine Threatens Gulf Coast: Evacuations and Energy Shutdowns Ensue

Tropical Storm Francine is intensifying and set to become a hurricane, prompting evacuations in Louisiana and shutdowns of oil and gas production in the Gulf of Mexico. The storm's landfall near Cameron, Louisiana, is expected to test new LNG export plants. Several ports and energy companies have initiated precautions.

Tropical Storm Francine is on course to become a hurricane by Tuesday, necessitating evacuations in Louisiana and leading to shutdowns of oil and gas production in the Gulf of Mexico. The U.S. National Hurricane Center reports that Francine could hit the Louisiana coast on Wednesday with severe winds, heavy rains, and a storm surge of up to 10 feet.

Authorities have mandated evacuations in the region, closed schools, and distributed sandbags in preparation for the storm. Energy companies have ceased production, with nearly a quarter of the Gulf's oil output and 26% of its natural gas production already offline. Ports across Texas and Louisiana are working under restrictions or have closed.

Natural gas prices saw a rise of 3% due to concerns over production halts, while crude oil futures fell over 4% amid global demand concerns. In New Orleans, port officials plan to close terminals, with assessments to follow post-storm. Major LNG export plants in the area brace for impact, taking preparatory measures for the incoming storm.

(With inputs from agencies.)