U.S. Terminal Industry Set for More than 200 Maintenance Projects in Second Quarter

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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. is seeing a renewed emphasis on terminal capacity, particularly in the Oil & Gas Industry, where increasing production is driving demand for new storage facilities in high-activity areas like the Permian Basin and the Gulf Coast. Every new unit will require regular maintenance, a boon for engineers and other contractors who cater to industry demand. In second-quarter 2019 alone, 220 maintenance-related projects at U.S. terminals are set to kick off, according to Industrial Info's project database.

Click on the image at right for a graph detailing the top 10 U.S. states for Terminals Industry maintenance projects set to begin from April through June, by investment value.

Industrial Info was tracking about $4 billion in active U.S storage spending at the beginning of 2018, but more than $9.39 billion in crude-oil terminal projects are set to begin construction between 2018 and 2020. Although maintenance accounts for only a sliver of the overall spending, these projects are necessary to maintain efficiency and avoid much heavier costs due to accidents and malfunctions.

The highest-valued project at a crude-oil terminal that is set to begin in the second quarter is Mermentau Energy LLC's $6.5 million in inspections and upgrades at its terminal in Jennings, Louisiana. Through the end of the year, Mermentau plans to upgrade, repair and return to service 13 of the facility's 21 tanks. For more information, see Industrial Info's project report.

Most of the other maintenance projects at terminals along the U.S. Gulf Coast are in the area surrounding Houston, Texas, which is one of the busiest places for exports. Contanda LLC (Houston) is at work on two projects that will run through the end of the year: $2 million in inspections and upgrades at Bulk Liquids Terminal #1 and $1.5 million in inspections and upgrades at Bulk Liquids Terminal #2. Each involves inspections to three or four tanks that handle specialty chemicals, including caustic soda, fertilizers and petroleum products. For more information, see Industrial Info's project reports on Terminal #1 and Terminal #2.

Smaller-valued projects can be found farther inland in the Permian Basin region, where Magellan Midstream Partners LP (NYSE:MMP) (Tulsa, Oklahoma) is at work on $1 million in inspections and upgrades at a refined-products terminal in Odessa, Texas, and Flint Hills Resources Limited Partnership, a subsidiary of Koch Industries Incorporated (Wichita, Kansas), is performing $500,000 in inspections and upgrades at a gasoline and diesel bulk terminal in San Antonio. Both are expected to wrap up in December. For more information, see Industrial Info's reports on the Odessa and San Antonio projects.

Maintenance projects at terminals that service the Chemical Processing Industry only amount to roughly one-third of those for crude-oil and refined-product storage, in both project number and investment value. But they include some of the most recognizable names in the business, including Morgan Stanley (NYSE:MS) (New York, New York) subsidiary TransMontaigne Incorporated, which is performing $5 million in inspections and upgrades at its petrochemical terminal in New Albany, Indiana, and Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas), which is performing $2 million in inspections and upgrades at its Philadelphia Harbor Chemical Terminal in Philadelphia, Pennsylvania.

In the Houston area, Royal Vopak's (Rotterdam, Netherlands) North American subsidiary is at work on $3 million in inspections and upgrades at its chemical terminal in Deer Park, while DowDuPont (NYSE:DDP) (Midland, Michigan) is at work on $2 million in inspections and upgrades at its marine terminal in Freeport. Each of these four projects is expected to wrap up in mid-December. For more information, see Industrial Info's reports on the New Albany, Philadelphia, Deer Park and Freeport.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.