Thursday, July 3, 2025

US lifts restrictions Enterprise Product's ethane exports to China

July 2, 2025

Enterprise Products Partners said that the U.S. cleared the way for them to resume ethane exports to China. The company also revoked a license restriction put in place only a few weeks ago, when the U.S. - China trade war shifted from tariffs to supply chain issues.

After accusing Beijing that it was slowing down shipments of rare Earths, vital for automakers and other industries, the U.S. placed new restrictions on ethane and a broad range of other exports to China.

The letter rescinding the license requirement was sent on Wednesday after the United States and China settled issues last week relating to shipments of rare-earth minerals and magnets from China to the U.S.

The Commerce Department informed Enterprise Products, Energy Transfer and ethane traders Satellite Chemical USA, Vinmar International that they were allowed to load ethane onto vessels bound for China, but not unload it in China.

Energy Transfer, Vinmar and Satellite have not responded to comments immediately. Energy Transfer, Vinmar and Satellite did not respond immediately to requests for comments.

A stoppage in the shipments of ethane - which is extracted from U.S. shales and used primarily as a feedstock for petrochemicals - would hurt both U.S. producers and Chinese petrochemical companies.

Ethane is used as a feedstock by Chinese petrochemical companies because it's cheaper than naphtha. U.S. producers of oil and gas need China to purchase their natural gas liquids because domestic supply is greater than demand. Reporting by Arathy S. Somasekhar, Houston; editing by Lisa Shumaker

(source: Reuters)

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