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Odfjell to make final investment decision on ethylene export facility in 2Q-3Q
HOUSTON, May 11, 2017 (PCW) – Odfjell Terminals on Thursday said it would make a final investment decision on a possible ethylene export terminal at its existing Seabrook facility between the second and third quarters of this year.
In its 1Q earnings release, the company stated the estimated cost of the project would be $250-300 million. No projections for a start-up date were provided. Odfjell stated the project would be based on long-term take-or-pay contracts and that it had already secured one of the main air permits necessary to move forward with construction.
Odjfell also noted that should it have first mover advantage, future competing projects would face high barriers to entry.
In February, the company awarded a basic engineering contract for the terminal to JGC America. Its Seabrook terminal has a total capacity of almost 2.4 million barrels, spread over 119 tanks.
Meanwhile, Enterprise Products Partners has been mulling ethylene exports as either a standalone terminal as part of its current Morgan’s Point ethane export facility.
Currently, there is only one ethylene export terminal along the US Gulf Coast, located at Galena Park, Texas. It is jointly operated by Chevron Phillips, ExxonMobil and Mitsubishi and has an export capacity of 660 million lbs/yr. -- Samantha Hartke