Nynas Naphthenics is building a blending and storage hub in Houston with 25 tanks and 55,000 cubic meters of storage capacity to help meet growing demands for its base oils, tire oils and transformer oils. Completion is expected by the end of 2009.
In its latest Naphthenics magazine, Stockholm, Sweden-based Nynas said that in addition to receiving products from production units in the U.S., the Houston hub will also accept deliveries from production units in Nynashamn in Sweden and Curacao in the Dutch Antilles, as well as from the companys hub in Antwerp, Belgium. Nynas increased storage capacity 20 percent at the Antwerp location last year in response to increased demand for tire oils and transformer oils.
About one third of Nynas entire production capacity in terms of delivery volumes – to the U.S. and the rest of the world – now come out of the U.S., the company noted.
According to Nynas, Westway Terminal Co. is building the hub in Houston alongside the Houston Ship Channel. The hub is designed to manage deliveries via ship, truck and rail. Customized to meet Nynas requirements, the facility will include dedicated pipelines for certain products, high blending capability and special loading facilities for sensitive products. Westway is a subsidiary of New Orleans, La.-based Westway Holdings Ltd.
Houston is an important link in Nynas global supply chain and will increasingly supply depots all over the world, said Mikael Arnestrand, Nynas head of supply chain for the Americas. The new hub is not only a storage facility – it is the final upgrading step in the Nynas supply chain, where end products are blended according to customer requirements.
Nynas refinery in Nynashamn, Sweden, produces 7,800 barrels per day of naphthenic base oils. The company also markets the output from Lyondells Houston plant, which includes 1,000 barrels per day of API Group II base oils and 3,600 b/d of naphthenic base oils. Nynas has depots in Houston and Three Rivers, Texas, as well as in Long Beach, Calif.; Hammond, Ind.; and McKees Rock, Pa.