Mitsui To Build Petrochemical Storage Terminal In Texas

TOKYO (Nikkei)--Mitsui & Co. (8031) said Wednesday it will construct a storage and shipment terminal for oil and petrochemical products on the Houston Ship Channel in the U.S. state of Texas.

The total investment is expected to top 14 billion yen, with the terminal set to start operating in spring 2015. The move is in response to rising demand for such facilities from the U.S. petrochemical industry amid the nation's shale revolution, the Japanese trading house said.

Wholly owned unit Intercontinental Terminals Co., which runs tank terminals for oil and petrochemicals, will build the base in Pasadena, Texas. It will feature 10 storage tanks with a combined 160,000 cu. meters of capacity, along with harbor and shipping facilities.

The local unit's existing 2 million cu. meter storage complex is now at full utilization. The new terminal will be built on 10 hectares of a 70-hectare tract the company has acquired for the purpose of expanding its overall storage capacity.

The U.S. petrochemical industry is rushing to build more plants with the aim of boosting cost competitiveness through the use of domestic shale gas and oil. With storage tanks crammed to capacity in the Houston area, a major oil and petrochemical hub, the Mitsui group anticipates brisk demand for terminal services.

(The Nikkei, March 7 morning edition)

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