Ethane developments are on the cusp of a number of expansions for both supply and demand. Additional steam crackers are being added particularly in Asia which will use imported ethane as a feedstock, providing petrochemical players with an efficient ethylene production. Currently, the majority of seaborne ethane comes from the US, where a number of new terminal expansions/additions have been announced. A large number of new ethane vessels have been ordered to undertake the “ethane pipeline” transits from the US to Asia coming onstream.

  • US ethane export capacity is currently around 11.3 mm t per year. Recently, Enterprise and Energy Transfer announcement a number of projects to increase the export capacity for ethane. Some projects include flexibility for ethane exports with either ethylene and/or LPG.
  • NGLStrategy takes a look at the demand side for ethane and what projects have been announced which are likely to utilize the new capacity in the US. The nearby graph shows the steam cracker projects announced which NGLS assesses as likely to go ahead before 2030. By the end of 2027, NGLStrategy forecasts around 9 mm t additional ethane demand globally; 5.9 mm for China, 1.8 mm t for Europe and 1.3 mm t for Vietnam.
  • There is also the potential of another 4.6 mm t of ethane demand in other projects globally by 2030.
  • Two of the major players are Wanhua Chemical and Satellite Petrochemical. The former will begin importing ethane from this year to a new plant in Yantai which is flexible with naphtha. The volume included in the graph is the maximum volume of ethane at capacity. Wanhua Chemical is then expected to convert its current steam cracking in Yantai from propane to ethane in 2026, adding another 1.3 mm t/y of ethane demand. Finally, an ethane cracker is expected to begin in Fujian towards the end of the decade. Satellite Petrochemical already imports a significant volume of ethane from the US for its two steam crackers. NGLStrategy has included two further phases in Jiangsu by 2030.

New Importing Ethane Projects

202507-02
  • Outside of China, ethane demand will come from INEOS in Belgium with the start-up of their ethane cracker in 2026.
  • In Vietnam, SCG are expected to convert their Long Son Petrochemical steam cracker complex from propane to ethane.
  • In India, GAIL have plans to build a new ethane cracker by the end of the decade. Already Reliance import ethane from the US to their facilities in India.