US exports of the petrochemical gas ethane are expected to nearly double over the next two years thanks to the growth in the waterborne market. The growth comes as a big slug of ethane-capable ships gets delivered in the first quarter.
The opening earlier this year of the Sunoco Marcus Hook ethane export dock along the US East Coast and the Morgan's Point marine export facility in the Houston Ship Channel have sent US ethane exports to new levels.
The US Energy Information Administration said exports from marine export terminals added the equivalent of 4.1 million tonnes per annum of exports during the fourth quarter. Total exports, including pipeline exports to Canada, totalled 5.3 million tonnes per annum at the end of last year.
EIA projects that total marine and pipeline exports will average 9.5 million tonnes by 2018.
The first ethane shipments from Marcus Hook headed to Europe aboard gas carriers chartered by petrochemical producer Ineos. Owner Evergas has a total of five of the "dragon-class" ships on the water.
But the Morgan's Point facility, which at full capacity will be able to ship 6.3 million tonnes per annum, is capable of loading very large ethane carriers (VLECs) for transit to India.
Currently, the Reliance Industries-owned 87,000-cbm Ethane Emerald (built 2016) is loading its first commercial cargo at Morgan's Point. That is the second VLEC to load at Morgan's Point, after sister ship Ethane Crystal loaded at the end of December.
Reliance, which will use fuel for its own plants, is expected to take delivery of four more ships this year. Two more VLECs, commissioned by Jaccar Holdings, are expected to be added to the world fleet through 2018.
