Oth 2018

Odfjell to expand Houston terminal

Jan. 31, 2022
Construction to start this year will add nine new tanks to Bay 13, increase location’s bulk chemical storage capacity by 9%

Odfjell is investing in and expanding its terminals platform with the addition of a new, modern, automated tank bay in Houston.

Bay 13 at Odfjell Terminals Houston (OTH) will increase capacity by approximately 9% to 413,400 cubic meters (cbm), the company said. The expansion is consistent with OTH’s strategy of positioning itself to meet demand for storage capacity in the specialty/petrochemical industry in the U.S. Gulf Coast region, where OTH has been operating at or near full capacity for years.

The bay’s nine new tanks will be comprised of a mix of stainless and carbon steel, with a total capacity of 32,400 cbm. The new tanks will allow OTH to relocate and consolidate products of existing customers and optimize the use of its current storage capacity for new customers and products.

The tank bay will be highly automated, requiring less manual intervention, and benefit from the company’s ongoing ‘Digital Transformation Program,’ which includes an advanced ERP system and automated control systems.

Bulk chemicals, including intermediate and specialty chemical products exports, in the U.S. Gulf are expected to increase by 2.5 million U.S. tons by 2024, while import volumes are expected to increase by 429,000 tons by 2030. As a result, storage demand is expected to rise, and the development of Bay 13 will assist in further optimizing OTH and allow Odfjell to support industry growth for new and existing customers.

OTH has been a leading provider of storage, transfer, and distribution services to the liquid bulk chemical industry for nearly four decades.

With its current 119 tanks, two deep water ship docks, four barge berths, and one of the largest stainless-steel storage capacities of any independent tank terminal in the world, OTH is strategically located near the entrance of the Houston ship channel and serves as a major international hub for chemical import and export to and from the United States.

Along with the East Coast presence of its terminal in Charleston, S.C., Odfjell’s strategically located assets are well placed to continue to play an integral role in the global and regional chemical trades to and from the United States, according to the company.

Bay 13 is set to begin construction in the first quarter, and expected to be operational by the end of 2023. The expansion will be fully financed through an existing credit facility.