The basic engineering contract has been awarded for the possible development of an ethylene export terminal at Odfjell Terminals’ facility in Seabrook, Texas.
With this award to JGC America, Odfjell Terminals enters into the last phase of engineering before the final investment decision.
The development follows the announcement of several new ethane crackers as a result of the shale gas revolution, which provides US crackers a significant feedstock advantage compared to crackers in Europe and Asia.
Currently, there are no efficient export facilities for ethylene in the US. According to Odfjell the terminal will allow producers, consumers and traders to export ethylene to other parts of the world. The terminal in Seabrook is ideally located nearby all major ethylene pipeline corridors. It also has land available for expansion with marine infrastructure.
Frank Erkelens, CEO of Odfjell Terminals, says: ‘We strongly believe that Odfjell Terminals’ ethylene facility can open global markets for ethylene produced in the US. It will provide producers, traders and consumers the opportunity to take advantage of the competitive cost price of US produced ethylene. Our terminal in Seabrook is in an excellent location at the entrance of the Houston Ship Channel, and allows unrestricted access for ethylene carriers to our dedicated ship dock.’