Vopak to Boost Thailand Terminal for US Ethane Imports by 2029.

SINGAPORE (Reuters) – In a significant move for the petrochemical industry, global independent storage operator Vopak has announced plans to expand its joint-venture terminal in Thailand. This expansion is aimed at accommodating U.S. ethane imports for the state energy firm PTT Global Chemical starting in 2029. The decision comes as petrochemical firms across Asia, particularly in China, are gearing up to increase their imports of affordable ethane, a byproduct of the U.S. shale gas boom. This strategic shift is designed to diversify raw material supplies and reduce operational costs.

Expansion Details of the Thailand Terminal

The Thai Tank Terminal, a collaboration between PTTGC, Gulf Energy Development, and Vopak, will see the construction of an additional 160,000 cubic meters of tank storage in Map Ta Phut, Rayong. This expansion is crucial for enhancing the terminal’s capacity to handle the growing demand for ethane in the region. Vopak’s joint venture has also secured a 15-year contract with PTTGC for the storage and handling of ethane in Thailand, solidifying its role in the local petrochemical supply chain.

Investment Strategy in Thailand

This project is part of Vopak’s broader investment strategy in Thailand, which includes a commitment of 130 million euros (approximately $120.4 million) over the next four years. This investment will focus on enhancing storage and other infrastructure in the Map Ta Phut area, positioning Vopak as a key player in the region’s energy and chemical sectors.

Impact on the Petrochemical Industry

The expansion of the Thailand terminal is expected to have a significant impact on the petrochemical industry in Asia. As companies look to capitalize on the lower costs associated with U.S. ethane, the demand for storage and logistics solutions will likely increase. Vopak’s strategic investment will not only bolster its operations but also support the broader industry in adapting to changing market dynamics.

Future Prospects for Ethane Imports

With the U.S. shale gas boom continuing to reshape the global energy landscape, the demand for ethane imports is projected to rise. Asian petrochemical firms are increasingly turning to U.S. sources to secure their raw material needs, making Vopak’s expansion in Thailand a timely and strategic move. The joint venture’s ability to provide reliable storage and logistics for ethane will be critical as the market evolves.

Conclusion

Vopak’s expansion of its Thailand terminal for U.S. ethane imports marks a pivotal moment for the company and the Asian petrochemical industry. As firms strive to lower costs and diversify their supply chains, Vopak’s investment will play a crucial role in meeting the growing demand for ethane in the region. For more details, you can read the original article here.