Changes in Longitudes—The Coming Revolution in U.S. Ethane Exports
U.S. ethane has never been exported overseas. Not yet, that is. Week by week, the details of an emerging export market for U.S.-sourced ethane are coming into focus. Enterprise Product Partners, which has been expressing interest in exporting ethane for some time, a couple of weeks ago announced plans for a 240 Mb/d export terminal on Texas’s Gulf Coast and explained how it sees things shaking out. Navigator Holdings, a major shipping company, has placed an order for new semi-refrigerated liquefied gas carriers capable of carrying ethane (or ethylene). And while U.S. ethylene producers fret about how ethane exports could drive up domestic ethane prices, there is solid evidence ethane will remain a surplus, low-cost commodity for years to come. In this follow-up to our recent ethane exports series, we consider recent developments and what they mean.
