Thai Tank Terminal and Vopak Enhance Ethane Handling Capacity
Strategic Expansion in Ethane Storage and Handling
In a significant move to enhance global industrial terminal capacity, Thai Tank Terminal and PTT Global Chemical have formalized a remarkable 15-year agreement for ethane storage and handling. This collaboration promises to make a substantial impact on the storage and logistics infrastructure for liquid chemicals and gases in Thailand.
Investment in New Infrastructure
Vopak has made a pivotal final investment decision to expand its international footprint by establishing a new tank infrastructure with a capacity of 160,000 cubic meters in Map Ta Phut, Rayong. This expansion is geared towards supporting the import of ethane from the United States into Thailand, indicating a robust strategic direction in the global chemicals market.
Significance of Ethane in the Chemical Industry
This new infrastructure for ethane storage is strategically vital. Ethane is set to serve as a reliable long-term feedstock for petrochemical crackers, thereby enhancing cost competitiveness and improving feedstock security. This agreement is expected to bolster Thailand’s position as a leader in the global chemical industry.
Vopak's Investment Strategy
As part of its ongoing investment efforts in Thailand, Vopak has earmarked around EUR 130 million for the next four years. This funding will facilitate the establishment of storage facilities and other essential infrastructure in the Map Ta Phut region, providing long-lasting operational returns upon completion.
Vopak's Commitment to Sustainability
Ethane's lower carbon footprint compared to traditional feedstocks like naphtha aligns seamlessly with PTT Global Chemical's commitment to sustainable, responsible chemical operations. This collaboration signifies a progressive step towards reducing environmental impact while ensuring efficient operations.
About Thai Tank Terminal
Thai Tank Terminal (TTT) operates as a joint initiative between PTT Global Chemical, Gulf Energy Development, and Vopak Holding International. TTT is equipped to provide high-quality storage and logistics for liquid chemicals and gases, ensuring effective terminal operations at Thailand’s largest industrial port. Notably, Vopak holds a 35% stake in Thai Tank Terminal, underlining its commitment to advancing chemical logistics.
About PTT Global Chemical
PTT Global Chemical Public Company Limited, often referred to as GC, was established as the chemical arm of PTT Group when registered as a public company in 2011. GC leads the sector by integrating olefins and aromatics with refining processes. As Thailand's largest petrochemical entity, GC manages extensive operations and boasts a diverse product portfolio. The company stands out as a prominent player in the Asia-Pacific region, producing bioplastics and supporting sustainability through innovative technologies.
About Royal Vopak
Royal Vopak plays a crucial role in managing the global flow of vital products. With over 400 years of experience, Vopak delivers tailored storage and infrastructure solutions across a global network of terminals. These facilities ensure that essential products, including energy sources, chemicals, and agricultural inputs, are managed efficiently. Vopak is committed to supporting the energy transition, facilitating the development of low-carbon fuels, and advancing battery energy storage solutions.
Contact Information
For further inquiries, please reach out to:
Vopak Press: Liesbeth Lans - Manager External Communication,
Email: global.communication@vopak.com
Vopak Press: Alexis Oh - Regional Communications Manager (Asia & Middle East),
Email: alexis.oh@vopak.com
Vopak Analysts and Investors: Fatjona Topciu - Head of Investor Relations,
Email: investor.relations@vopak.com
Frequently Asked Questions
What is the purpose of the new ethane infrastructure?
The new infrastructure aims to enhance the storage and handling of ethane, providing a dedicated feedstock supply for petrochemical production.
Who are the companies involved in this agreement?
The agreement is primarily between Thai Tank Terminal and PTT Global Chemical, with Vopak playing a significant role through its joint venture.
What is the estimated completion date for the new infrastructure?
The ethane storage and handling facility is expected to be operational by 2029.
How much is Vopak investing in this project?
Vopak is investing approximately EUR 130 million over the next four years in the Map Ta Phut region.
What are the environmental benefits of using ethane?
Ethane has a lower carbon footprint compared to conventional feedstocks such as naphtha, aligning with sustainable practices in the chemical industry.
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