PTT Global Chemical Public Company Limited (GC), a leading global chemical company, will become the first chemical producer to integrate U.S. imported ethane into its operations in Thailand as an alternative feedstock, enhancing cost efficiency, resilience, and sustainability. By leveraging existing infrastructure, this initiative secures a stable, long-term ethane supply with minimal investment, reinforcing GC’s competitiveness and long-term growth.
This initiative aligns with GC’s Holistic Optimization strategy, ensuring long-term feedstock security, cost optimization, and strengthening Thailand’s continued leadership in the global chemical industry, while contributing to a balanced and mutually beneficial trade relationship between Thailand and the United States. GC is uniquely positioned to integrate ethane into its operations with minimal investment, leveraging its existing infrastructure at its facilities in Rayong, eliminating the need for costly upgrades and enhancing operational efficiency.
Mr. Narongsak Jivakanun, CEO of GC, said, “This strategic move marks a significant step in GC’s journey toward long-term competitiveness. By importing and integrating ethane into our operations, we are securing a cost-efficient and stable supply chain that reinforces our leadership in the chemical industry while advancing sustainability. This initiative also strengthens trade and economic collaboration between Thailand and the U.S., contributing to a more balanced trade relationship and further enhancing global partnerships in the petrochemical sector.”
As part of this initiative, GC has signed a long-term imported ethane supply agreement with an affiliate of Enterprise Products Partners L.P., a leading ethane supplier in the United States. The agreement ensures a secure supply of 400,000 tons of ethane annually, ensuring a reliable and sustainable feedstock supply to meet growing demands in a competitive landscape.
To facilitate the import and logistics of ethane, GC has signed multiple long-term agreements with key partners to ensure a reliable and efficient supply chain. This includes Very Large Ethane Carriers (VLECs) service agreements by PTT Public Company Limited (PTT) and MISC Berhad (MISC), a global leader in liquefied gas transportation, to enable safe and reliable shipments from the United States. Additionally, GC has entered into a long-term terminal service agreement with Thai Tank Terminal Co., Ltd. (TTT) to support the delivery and storage of ethane at the Map Ta Phut Terminal in Rayong.
Ethane has a lower carbon footprint compared to conventional feedstocks like naphtha, aligning with GC’s commitment to sustainable and responsible operations. This initiative supports GC’s decarbonization strategy, ensuring compliance with global ESG standards while enhancing energy efficiency in production.
GC expects to begin receiving imported ethane in 2029, positioning the company for long-term resilience and market leadership. This strategic move underscores GC’s dedication to creating a sustainable, resilient, and cost-effective chemical supply chain, reinforcing its leadership in the industry.
