Global independent storage operator Vopak announced plans to expand its joint-venture terminal in Thailand to accommodate U.S. ethane imports for state energy firm PTT Global Chemical starting in 2029. This move is driven by petrochemical firms across Asia, particularly China, seeking to increase imports of cheaper ethane from the U.S. shale gas boom to diversify raw material supply and reduce costs.

The expansion will be carried out by Thai Tank Terminal, a joint venture between PTTGC, Gulf Energy Development, and Vopak. The project will add 160,000 cubic meters of tank storage in Map Ta Phut, Rayong. The joint venture, which provides storage and logistics infrastructure for liquid chemicals and gases, has also signed a 15-year contract with PTTGC for the storage and handling of ethane in Thailand.

This project is part of Vopak’s broader investment strategy in Thailand, which includes allocating 130 million euros ($120.4 million) over the next four years for storage and other infrastructure in the Map Ta Phut region.

In a separate development, PTT signed long-term charters for two Very Large Ethane Carriers (VLEC) with Malaysian shipping firm MISC. The vessels, to be constructed by HD Hyundai Heavy Industries, are scheduled for delivery by the end of 2028.