(146b) Performance of and Mitigation Options for Vulnerable Plant Components

Process units that reside within a petrochemical plant consist of multiple components, from process towers and pipe racks to furnaces and flare towers. Each component will have varying degrees of vulnerabilities to extreme winds and to storm surge associated with a hurricane striking the plant site. Among the more vulnerable components within a petrochemical plant are cooling towers, tanks, and electrical systems, specifically utility poles, transformers, and switchgear. Damage to these components can cause prolong disruptions to plant operations, resulting in high business interruption costs. This presentation will address the nature of hurricane damages sustained by cooling towers, tanks, and electrical systems. Also discussed are ways to quantify risks to these plant components in a manner that will enable operators and owners to make informed, cost-effective decisions regarding mitigation planning and associated reductions in loss exposures. Such knowledge is important from a commercial insurance perspective, and also from the standpoint of increasing operational reliability while decreasing potential business interruption losses.