US-based Enviva Partners, LP (Enviva), the world's largest wood pellet producer has reported a fire incident at its deep-water marine terminal in Chesapeake, Virginia (VA) that occurred late on February 27, 2018.
According to a statement, the fire was quickly controlled due to the efforts of onsite personnel and the Chesapeake terminal’s fire suppression and mitigation processes, with assistance from local fire departments and other first responders. No injuries were reported and the cause of the fire incident has yet to be determined.
While the Chesapeake terminal is being returned to safe, full commercial operations, Enviva expects to utilize several storage alternatives to minimize the impact of the incident, including excess capacity at its deep-water marine terminal in Wilmington, North Carolina (NC), and other temporary storage facilities.
Enviva cautions that the fire may impact the timing and number of shipments in the first quarter of 2018, but does not pose any lasting disruption thanks to its portfolio of production plants and export terminals and the fulfillment flexibility in its off-take contracts and shipping schedule.
Furthermore, Enviva does not expect the fire to impact the full-year 2018 financial guidance, subject to recoveries under insurance policies it maintains to mitigate against certain risks and other contractual rights.
