(25f) Evaluating and Mitigating Hurricane Perils to Process Plants

The hurricane risks along the Gulf and Atlantic coasts have received much attention over the past few years. The 2004 season was notable in that it had six hurricane landfalls, the largest number of hurricane landfalls in the United States since the 1884. Prior to 2005, the Gulf Coast and the chemical and process industries located there had multi-decades of favorable storm experience. Hurricane Katrina in 2005, the most costly hurricane in U.S. history (variously estimated to have cost from $50 billion to $135 billion), and Hurricane Rita caused millions of dollars in property damage and larger disruptions to chemical and process plants operations along the Gulf of Mexico. Storm surge, hurricane wind, and direct precipitation brought by these storms were the primary agents of damage.

This paper will discuss these hazards and their effects on process units, equipment, tanks, and other special structures. Methods for quantification of the likelihood and consequences of hurricane damage for both insurance and risk mitigation will be presented along with a methodology for risk-based optimization of investment in mitigation options for facilities exposed to one or more of these perils. Examples of recent hurricane damage and mitigation measures that are being employed to limit future damage will be presented.