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SINGAPORE (Reuters) - Global independent storage operator Vopak said on Thursday that it will expand its joint-venture terminal in Thailand to handle U.S. ethane imports for state energy firm PTT Global Chemical from 2029.
Petrochemical firms across Asia, led by China, are planning to ramp up imports of cheaper ethane flowing from the U.S. shale gas boom to diversify raw material supply and lower costs.
Thai Tank Terminal - a joint venture between PTTGC, Gulf Energy Development and Vopak - will construct 160,000 cubic metres of tank storage in Map Ta Phut, Rayong, according to Vopak.
The JV, 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.
The project is part of Vopak's investment strategy in the country to allocate 130 million euros ($120.4 million) over the next four years related to storage and other infrastructure in the Map Ta Phut region.
Separately, PTT signed on Wednesday long-term charters for two Very Large Ethane Carriers (VLEC) with Malaysian shipping firm MISC.
The vessels will be constructed by HD Hyundai Heavy Industries and are scheduled for delivery by the end of 2028, MISC said in a statement.
($1=0.926236 euros)
(Reporting by Florence Tan; Editing by Sherry Jacob-Phillips)