- The newly inaugurated TQPM import terminal in Coatzacoalcos will supply 80,000 bpd of ethane to Braskem-Idesa’s 1.05 mtpa cracker, resolving chronic feedstock shortages and enabling a 25 % capacity boost.
- Mexico’s ethane imports reached 9 Mt in 2024 and are projected to surge further once the terminal ramps up; US exports climbed to 8.9 Mt amid shale-driven production gains and forthcoming export-capacity expansions.
- Robust global demand for ethane crackers and long-haul tonne-mile trade underpins healthy ordering of VLECs and ULECs, although 2025 orders have slowed amid fleet-surplus and tariff uncertainties.
Braskem-Idesa, in partnership with Advario, has commissioned the Terminal Química Puerto México (TQPM) at Coatzacoalcos to import up to 80,000 barrels per day of ethane. The USD 400 million project includes 100,000 cbm of storage, a 10 km delivery pipeline, and related logistics infrastructure. Beginning operations in May 2025, the terminal will feed the XXI complex’s 1.05 mtpa cracker and support additional downstream projects. Full utilization is expected by July, unlocking a planned 25 percent expansion, according to Drewry.
Resolving Declining Domestic Supply
Since 2018, Pemex deliveries to the complex have fallen from 66 kbpd to just 26 kbpd by mid-2024, forcing operations to run at 60–80 percent capacity with periodic shutdowns. To bridge this gap, Braskem-Idesa had resorted to temporary shipborne imports. The new terminal, coupled with two owned ethane carriers—Brilliant Future (delivered January 2025) and Brave Future (due June 2025)—and long-term supply contracts with Enterprise Products’ Morgan’s Point export hub, ensures a stable feedstock stream.
Mexico’s Import Trends and Projections
Mexico’s ethane imports climbed from under 2 Mt in 2020 to 9 Mt in 2024. With TQPM at full capacity by mid-2025, annual volumes could approach 15 Mt, meeting both existing cracker needs and future downstream expansions.
US Export Growth and Future Terminal Capacity
US ethane exports, fueled by record natural gas processing, reached 8.9 Mt in 2024. Current export constraints—terminal throughput and limited VLEC availability—will ease as Neches River Terminal Phase 1 (3.7 mtpa) begins in 2025, followed by Marcus Hook Expansion (1.4 mtpa) and Nederland Flexport (5.1 mtpa) in 2026.
Emerging Demand for Ethane Cracking
Global demand for ethane as a petchem feedstock is rising sharply. New crackers across Asia and retrofits in Brazil are capitalizing on ethane’s stable pricing, higher margins versus propane or naphtha, and operational flexibility tied to natural gas market cycles. Upcoming flexible-feedstock units will further accelerate imports, supporting continuous growth in seaborne trade.
Specialized Ethane Carrier Ordering Trends
In 2024, shipowners ordered 23 ethane carriers (15 VLECs, 8 ULECs) to capitalize on strengthening fundamentals and charter demand, especially from Satellite Chemical’s planned fleet of up to ten VLECs for US–China voyages. Early 2025 has seen a slowdown to four VLEC orders amid surplus concerns and USTR Section 301 tariff uncertainties, though ethane’s tariff exemption from China preserves investment viability.
Sustained Growth in Tonne-Mile Demand
The convergence of US shale output, cost-efficient ethane feedstock economics, and an expanding global cracker fleet—particularly in China and India—points to robust long-haul tonne-mile demand. Investments exceeding USD 15 billion in new Chinese cracker projects and expanding VLEC fleets in India underscore a dynamic US–Asia ethane corridor, complemented by intra-American flows via Mexico’s TQPM terminal. Continuous charters on long-term contracts will underpin earnings stability and incentivize further fleet growth over the next five years.
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Source: Drewry
