Building on a portfolio of strong assets, more than half a century of track record, and the benefits of being both a shipping and terminal company, we have established a healthy platform for future growth. Our priority is to fully develop the potential within our existing footprint by developing new capacity on available land. Such expansions represent some of the most attractive and accretive investment opportunities available to us. Economies of scale, disciplined and modular execution, and a clear view of market demand provide for projects with highly attractive risk-adjusted returns.
Since 2018, Odfjell has completed the build-out of seven new tank pits across NNOAT and OTH, totaling 176,300 cbm and an aggregate investment of about USD 200 million. All projects are generating attractive returns, with estimated equity IRRs ranging from the mid-teens to high twenties. These expansions stand as an example of what can be achieved with a clear vision and a disciplined approach to growth.
Looking ahead, all terminals have land available for further expansion. Together with its joint venture partners, Odfjell seeks to realize the full potential of its existing terminal assets, while also assessing opportunities to expand the platform beyond its current footprint.
Noord Natie Odfjell Antwerp Terninal (NNOAT)
With the commissioning of Tankpit-R in February 2025, one month ahead of schedule, NNOAT marked the sixth new tank pit at the Antwerp terminal that has been commissioned since 2018. During this period, 143,900 cbm of storage capacity has been added, all while maintaining safe and steady operations throughout the construction periods.
“Owing to the dedication and expertise of our engineering and project management teams, and with valuable contributions from our contractors, Tankpit-R was successfully commissioned over a month ahead of schedule.”
In September 2024, the NNOAT Board approved the Tankpit-Q expansion, comprising two tanks with a total capacity of 12,000 cbm. Tankpit-Q is scheduled for commissioning in the second half of 2025. Upon completion, NNOAT’s total capacity will exceed 500,000 cbm, marking a 46% increase since 2017. Notably, all expansion projects to date have been delivered on time, according to scope, and within budget, demonstrating NNOAT’s strong project execution capabilities. These investments capitalize on existing infrastructure, driving cost efficiency and operational synergies. With an eye always on the horizon, NNOAT has identified opportunities to develop further capacity of up to 80,000 cbm across the terminal. We anticipate that these projects will be developed in a gradual fashion, in line with market demand, as well as local execution and funding capacity.
Odfjell Terminals Houston (OTH) and Odfjell Terminals Houston (OTC)
Moving across the Atlantic, OTH holds substantial potential for further growth. In the first quarter of 2024, the Bay 13 expansion project at OTH, consisting of 9 new tanks totaling 32,433 cbm, was successfully commissioned. Bay 13 represents an important milestone for OTH, but also for the broader Odfjell Terminals organization. Over 300,000 man-hours have gone into the project, at times involving more than 100 contractors working on-site in the heart of a fully operational terminal. Delivering this project on budget, on schedule, and—most importantly—without a single safety incident is a remarkable achievement.
“These expansions collectively illustrate Odfjell’s commitment and ability to grow our terminal infrastructure platform in a disciplined and accretive manner. The projects exemplify Odfjell’s strategic approach to meeting our customers’ storage demands and reinforcing our market position.”
Furthermore, “The Point” is an undeveloped plot with an additional expansion capacity of around 140,000 cbm (+34%), and this land has unique characteristics: direct access to the Gulf of Mexico, advantageous location avoiding the congested Houston Ship Channel, and easy access to main pipeline networks. In addition, it is one of the few plots of land available on the Houston Ship Channel that could accommodate two new wharves with a draft of up to 45 feet for large chemical vessels up to 45,000 dwt.
Similarly, Odfjell Terminals Charleston (OTC), serving customers on the US East Coast, has land available to double its current capacity of 79,200 cbm on Charleston’s Cooper River.
Odfjell Terninals Korea (OTK)
OTK is an example of the inherent option value of available land and terminal infrastructure, with the build-out decision of a major plot of land postponed in anticipation of optimal market conditions. Now, with the momentum from S-OIL’s USD 7 billion Shaheen project – a major crude-to-chemical facility being developed near OTK – conditions are ideal for executing the expansion. This expansion project, referred to as E5, marks the first expansion at OTK in 13 years. E5 will include 10 carbon steel tanks, increasing capacity by 28%, with total capacity exceeding 400,000 cbm
In January 2025, S-OIL and OTK signed a 10-year definitive agreement for 3 storage tanks (23,990 cbm) in E5. The E5 expansion will be directly connected to Shaheen via pipeline, enabling efficient exports from Shaheen to global markets via seagoing vessels. This long-term agreement lays the foundation for an exciting strategic partnership and sets the stage for additional business opportunities in the Ulsan region, driven by new production capacity and trade flows linked to the Shaheen project.
“The E5 investment decision represents a major milestone for OTK and reinforces our growth trajectory at Odfjell Terminals.”
With E5 underway and an additional 21,000 cbm of expansion capacity available, OTK is well-equipped to support future growth driven by evolving trade flows and customer needs.
