Enterprise Exports Threatened by New US License Requirement
June 3, 2025 - Energy Intelligence
By: Frans Koster
Enterprise Products Partners has been notified by the U.S. Bureau of Industry and Security (BIS) that it must obtain licenses to export ethane and butane to China, citing national security concerns tied to potential military use under China’s military-civil fusion strategy. This move adds uncertainty to the growing U.S. LPG and ethane export sector.
The company, in an SEC filing, said it’s unclear whether it will be able to secure the licenses or find alternative markets, raising concerns about pricing and excess supply. Over half of U.S. ethane exports—around 500,000–600,000 barrels per day—go to China and are difficult to reroute due to the specialized infrastructure required.
Kristen Holmquist of RBN Energy warned the BIS decision “has the potential to ruin the US ethane market and disrupt global flows,” highlighting that few global facilities beyond China can absorb additional U.S. ethane.
Read the full article here: Enterprise Exports Threatened by New US License Requirement | Energy Intelligence
Industry sources echoed skepticism about the military justification, questioning why related products like ethylene or propane weren’t included. Confusion also arose as other major exporters, such as Energy Transfer and Phillips 66, reportedly haven’t received similar notifications.
Overall, the policy raises market risks and strategic uncertainty for a critical segment of U.S. energy exports.
