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Braskem-Idesa launched its ethane import terminal in Coatzacoalcos, Mexico, adding another demand centre for ethane seaborne trade, which reached 9 million tonnes in 2024. Ethane’s exemption from the US–China tariff war and its growing prominence as a petchem feedstock are fuelling investment for ethane crackers and specialised ethane carriers.

New ethane terminal to boost olefin production and ethane trade

Braskem-Idesa (a JV with 75:25), along with Advario, inaugurated its new TQPM (Terminal Química Puerto México) ethane import terminal at the Port of Coatzacoalcos, Mexico. This facility is designed to import 80,000 bpd of ethane, which will supply feedstock directly to the Braskem-Idesa petchem complex XXI, which houses an ethane cracker with 1.05 mtpa capacity, and also with capacity for other petchem projects in Mexico. The terminal project cost of $400 million includes a 100,000 cbm (54,000 tonnes) storage, a 10 km pipeline and associated logistics infrastructure.

Figure 1: Brilliant Future’s inaugural voyage, transporting ethane from Morgan’s Point to the TQPM ethane import terminal

Source: Drewry’s AIS

The terminal addresses long-standing ethane supply constraints that have hindered the complex’s performance. Since 2018, deliveries from Pemex (Mexico’s domestic Natural Gas processing facility)—contracted initially in 2010 for 66 kbpd—have declined steadily to just 26 kbpd by mid-2024. This shortfall forced the complex to operate at only 60–80% of its capacity with forced shutdowns due to unavailability of raw materials. Braskem-Idesa also implemented a fast track system to import ethane via ships as a temporary measure to plug the shortfall.

The new terminal enables full-capacity operations and supports a planned 25% capacity expansion. Although operations commenced in May 2025, full utilisation of the terminal is expected by July.

Braskem will operate two Sr Eth carriers—Brilliant Future (delivered in January 2025) and Brave Future (scheduled for delivery in June 2025)—to ensure reliable ethane supply. Braskem has also signed long-term contracts with Enterprise Partners Products to seek ethane supplies from Morgan’s Point ethane export terminal.

Figure 2: Mexico’s ethane imports from 2020 to 2024 and projections for 2025 (if the terminal operates at full capacity by July 25)

Source: EIA, Drewry Maritime Research

Braskem is already cracking ethane at its Bahia cracker in Brazil, where the cracker was modified to use up to 20% ethane along with naphtha. The ethane supplied is sourced from US Morgan’s point terminal. Braskem is also considering plans for modifying its three other crackers in Brazil to use 10–20% ethane, sourced from Brazil’s Petrobras.

US ethane exports rise with high production and increasing terminal capacity

Ethane emerged as a petchem feedstock courtesy the US shale gas boom, which flooded the market with cheap ethane supply, benefitting US petchem producers by allowing them to produce olefins at high margins. After the initial surge in US ethane cracking, the growth is maturing while production is reaching record highs owing to increased natural gas processing. Higher ethane availability is enabling increased exports, with the US exporting 8.9 million tonnes of ethane in 2024.

Figure 3: US ethane production and seaborne exports

Source: EIA, Drewry Maritime Research

At present, terminal capacity and limited fleet availability restrict the export growth, but we expect US ethane exports to increase further as the Neches River Terminal Phase 1 project starts operations in 2025, raising US ethane export capacity by 3.7 mtpa. Additionally, Marcus Hook Terminal Expansion Optimisation and the Nederland Flexport Expansion project are expected to increase US ethane export capacity by 1.4 mtpa and 5.1 mtpa, respectively, in 2026.

Figure 4: Ethane terminal export capacity in the US

Source: Drewry Maritime Research

Rising interest in ethane cracking

Ethane import demand is expected to grow annually at double digits, driven by the commissioning of new ethane-fed crackers across Asia and a broader shift in the petrochemical sector towards ethane as a preferred feedstock. Ethane offers more stable pricing and higher margins than propane and naphtha. Its production also provides operational flexibility—natural gas producers can increase ethane rejection during low prices and ramp up extraction when market conditions are favourable. Additionally, the growing deployment of flexible crackers, capable of switching to ethane during periods of propane price volatility, is expected to further support import demand growth.

Figure 5: Upcoming ethane cracking capacity to boost demand

Source: Drewry Maritime Research

Robust new ordering for specialised ethane carrier

Rising ethane demand from the petchem sector supported the rise in VLEC and later, ULEC ordering. In 2024, 23 vessels—15 VLECs and 8 ULECs—were ordered as improved market fundamentals encouraged owners to invest in larger, more efficient tonnage. Strong chartering interest, particularly from operators like Satellite Chemical (STL), which plans to charter up to 10 VLECs for US–China ethane trade, further supported this trend.

However, new vessel orders have slowed so far in 2025, with only four VLECs ordered in the first quarter. Growing concerns over potential vessel surplus and regulatory uncertainty surrounding Chinese-built ships under the USTR Section 301 review have led to a pullback in new orders. The recent exception for US ethane from China’s retaliatory 125% tariff has further safeguarded the investments in this segment, with more orders expected to follow.

Figure 6: Ethane carrier orders remain robust, as ethane trade gains traction

Source: Clarksons’, Drewry Maritime Research

Conclusion

The global ethane trade is poised for accelerated growth over the coming years, fuelled by strong market fundamentals. Robust US NGL production, ethane’s cost advantage over alternative feedstocks like propane and naphtha, and a surge in ethane-based cracker projects are collectively driving this momentum.

Asia remains at the forefront of this expansion, with China and India deepening their reliance on US ethane. Several Chinese operators, including Satellite Chemical, Wanhua Chemical and Sanjiang Fine Chemical, are together investing over $15 billion in crackers, plant upgrades and storage facilities to enhance ethane processing efficiency. In parallel, Indian players like ONGC, GAIL and Reliance are actively building or expanding VLEC fleets to support growing ethane import volumes. This intensifying US–Asia trade is expected to sustain strong tonne-mile demand growth due to the long-haul nature of the route. Meanwhile, intra-American trade is poised to add incremental tonne-mile demand, especially with recent developments in Mexico.

These trends are translating into sustained demand for ethane carriers. Therefore, we expect strong growth in the global ethane fleet over the next five years, supported by a steady stream of new orders for VLECs and ULECs. Employment of most of the fleet on long-term charters also provides earnings stability amid market volatility, encouraging further investment in fleet expansion.