Thai SCG advances Long Son ethane project with expanded fleet

SCG Chemicals (SCGC) recently signed a 15-year charter agreement with Mitsui O.S.K. Lines (MOL) for two additional Very Large Ethane Carriers (VLECs), increasing its fleet to five vessels, according to a press release. This move ensures the long-term transportation of 1 million tons/year of ethane from the US to Vietnam.

The $500 million Long Son ethane project, primarily funded by SCG’s internal resources, focuses on constructing feedstock storage tanks. SCGC aims to boost the complex’s cost competitiveness by using ethane, which cuts costs by over 30% compared to naphtha prices and reduces greenhouse gas emissions. The project is expected to be completed by the end of 2027, aligning with the anticipated recovery of the regional petrochemical market.

SCGC’s CEO, Sakchai Patiparnpreechavud, highlighted that the ethane supply chain for the Long Son complex is now fully established, encompassing supply agreements, VLECs, and feedstock storage facilities. The Long Son complex, the first in ASEAN to use US ethane as feedstock, is designed for immediate modification to accommodate ethane.