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Unexpected! The United States restricts the export of ethane to China, and several related ships are intercepted! | Maritime export logistics
Jun 09,2025
Recently, according to Bloomberg, Reuters and other authoritative media coverage, the US government is continuously tightening control on China's ethane export, which caused a huge shock in the energy industry in America.
On June 4, local time, energy giant Energy Transfer (ET-US) announced that A letter has been received from the United States Government requesting that it obtain a licence before exporting ethane and that operators of export terminals in the United States need to apply for an emergency authorization if they wish to continue to export ethane.
On the same day, Enterprise Products Partners (EPD-US) reported that the US government had denied emergency permission to export about 2.2 million barrels of ethane to China.
Just two days later, on June 6, several vessels loaded with U.S. liquefied ethane were intercepted before they reached the U.S. Gulf of Mexico, according to trade sources and vessel tracking data. That's because Washington suddenly demanded that U.S. exporters obtain permits to ship goods to China, the biggest buyer.
It is well known that about half of the ethane exported by the United States goes to China. The sudden supply disruption directly caused ethane prices to fall amid concerns of a domestic glut, and put the profits of top ethane producers at risk of being cut.
According to LSEG and Kpler vessel tracking data, the Liberian-flagged STL Qianjiang was berthed off the coast of the Gulf of Mexico last Friday, loading cargo for Satellite-Chemical at the Energy-Transfer Dutch dock. In addition, three other ships originally scheduled to load in early June were moored in the U.S. Gulf off Houston and Port Arthur, Texas, while three others continued to drift south after slowing down.
Meanwhile, the Pacific-neos-Grenadier (VLEC), a very large ethane carrier also flying the Liberian flag, loaded cargo at a corporate product partner terminal in Morgan's Point, Texas, which was originally scheduled to be shipped to China. However, after leaving the Gulf of Mexico on Thursday, it was berthed at the Enterprise Pier in Houston's Ship Passage on Friday and had not begun unloading as of Friday afternoon.
According to Kpler data, the ship is owned by British petrochemical company Ineos, which has focused on ethane transportation between the United States and China since August 2023.
According to Enterprise Products Partners, as early as May 23, they received a letter from the US government requesting an export license. The company submitted an application for an emergency authorization as required, but waited for a notice of rejection on June 3. According to the content of the letter received by the two companies, the US Department of Commerce, Industry and Security (BIS), claims that there is an unacceptable risk that ethane exported to China may be used for military purposes.
Samantha-hartke, head of analysis for the Americas at Vortexa, pointed out that the rejection of Enterprise's urgent export application raises suspicions that this is not just a short-term disruption. The new export controls pose a serious challenge for companies producing ethane, a by-product of natural gas. Companies may have to recalibrate recent freight schedules or try to find alternative buyers to keep their operations going. In the process, they will become increasingly dependent on their domestic market.
It is important to note that while China has some demand for ethane, it is not entirely dependent on U.S. imports. This measure by the United States not only causes a shock to its own ethane industry, but also may trigger a chain reaction across the global chemical industry chain. How events will unfold in the future still needs close attention from all sides.
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