June 4, 2025
U.S. Ethane Production, Overseas Shipments to Plunge With Export Controls, EIA Says
By Ryan Dezember
Enterprise Products Partners, a major U.S. fuel shipper, announced that the Commerce Department’s Bureau of Industry and Security (BIS) plans to deny its request to export three ethane cargoes (about 2.2 million barrels) to China from its Houston Ship Channel terminal. This decision escalates trade tensions between the U.S. and China. “The BIS decision has the potential to ruin the U.S. ethane market and disrupt global flows,” said Kristen Holmquist, managing director of analytics at consulting firm RBN Energy.
Read the full article here U.S. Ethane Production, Overseas Shipments to Plunge With Export Controls, EIA Says
The BIS cited concerns that ethane exports could support China’s military through its military-civil fusion strategy, prompting the requirement of export licenses for shipments to China. Ethane, a key plastic-making ingredient, is a significant U.S. export, with the U.S. being the only supplier of seaborne ethane globally. China, which has built facilities to process U.S. ethane, may face supply challenges, though it can source propane from other regions. The ban could harm U.S. exporters like Enterprise and Energy Transfer, disrupt the U.S. ethane market, and impact global trade flows, as there are no clear alternative markets for the volumes China typically purchases. Enterprise has 20 days to respond to the BIS notice.
