The U.S. doesn’t export much crude oil or gas to China, but propane and ethane exports may be strangled by tariffs
April 17, 2025
By Jordan Blum
The ongoing U.S.-China trade tensions are beginning to take a toll on a less-talked-about sector of the energy market: natural gas liquids (NGLs), specifically ethane and propane. While the U.S. doesn’t export much crude oil or natural gas to China, these byproducts are a different story—and they're now at the center of a brewing economic storm.
There are no simple alternatives for rerouting the vast quantities of U.S. propane and ethane currently sent to China. That reality is already being reflected in market prices. “Propane and ethane prices already are down about 25% and 15%, respectively, since March,” said Kristen Holmquist, managing director of analytics at RBN Energy, who added that further declines are likely. These NGLs are generally produced as byproducts of oil and gas extraction. Over the past decade, U.S. NGL production has more than doubled, surpassing 7 million barrels a day, according to the U.S. Energy Information Administration. The dramatic rise in output triggered a petrochemical plant construction boom in the U.S., largely to support the excess volume that now far outpaces domestic demand.
Read the full article here The U.S. doesn't export much crude oil or gas to China, but propane and ethane exports may be strangled by tariffs | Fortune
