US ethane producers say export curbs to China lifted

US ethane producers announced that the government has lifted imposed licensing requirements for shipping ethane to China, removing a key barrier to trade. The Bureau of Industry and Security had introduced the rules in late May, mandating licenses for ethane exports to Chinese parties. While the Commerce Department had eased the rules last week by allowing ethane to be loaded for China-bound shipments, companies were still required to obtain authorization to offload the cargo in Chinese ports.

According to filings from Enterprise Products Partners and Energy Transfer LP, those restrictions have now been rescinded, allowing deliveries to Chinese ports without additional US approvals. The reversal is expected to restore a critical trade route that the earlier controls had disrupted. Following the license requirement, ethane exports to China dropped sharply, forcing tankers to reroute to other destinations such as India.

Ethane exports to China account for around half of all US ethane shipments. The disruption affected both US producers and Chinese petrochemical firms, which favor ethane over naphtha for its cost advantage. With the restrictions lifted, analysts expect exports to recover, with July volumes likely returning to seasonal norms near 240,000 barrels/day.