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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--Enterprise Products Partners LP (Houston, Texas) says it has received notice from the U.S. Department of Commerce's Bureau of Industry and Security (BIS) that it intends to deny emergency requests to allow the company to ship ethane cargoes to China. Meanwhile, Energy Transfer LP (Dallas, Texas) also said it received notice this week from the BIS saying it would need a new license to export ethane to China.
The moves by the government mark the latest development in the trade tensions between the U.S. and China.
Enterprise said it received notice on Tuesday that the BIS intended to deny the company's emergency authorization requests (EARs) for three proposed ethane cargoes for China, totaling about 2.2 million barrels. Enterprise made the requests after it said it was notified by the BIS on May 29 of new licensing requirements for exports of "ethane and butane, saturated, having a purity of 95% or more by volume" to China. For more information, see June 4, 2025, article - U.S. Restrictions on Ethane, Butane Exports Could Disrupt Oil Markets.
Enterprise said the butane licensing requirement was subsequently dropped.
In a press release, Enterprise said it had up to 20 days to respond to BIS "with any comments or rebuttals with regard to these affected EARs. Unless Enterprise is advised by the 45th day after the date of the notification, these denials will become final without further notice."
Enterprise is a major player in the ethane export market and is among a long list of companies that could be greatly affected by export restrictions, said Industrial Info Vice President of Energy Services Jesus Davis.
As if to underscore the significance of the BIS's actions, Enterprise noted that U.S. ethane exports to China were approximately 227,000 barrels per day (BBL/d) in 2024, representing 8% of total U.S. ethane production and 46% of total U.S. ethane exports, according to the U.S. Energy Information Administration. Enterprise's marine export terminal on the Houston Ship Channel loaded approximately 213,000 BBL/d of ethane in 2024 of which approximately 40%, or 85,000 BBL/d, were destined to Chinese markets.
Enterprise added that it estimates total U.S. ethane exports to China have increased to approximately 290,000 BPD in 2025.
Meanwhile, Energy Transfer said it received notice on Tuesday that the BIS required the company to apply for a license to ship ethane "when a party to the transaction is located in China, or is a Chinese 'military end user,' wherever located, except for certain eligible license exceptions."
The BIS "has determined that such exports, reexports, or transfers (in-country) pose an unacceptable risk of use in or diversion to a 'military end use' in China or for a Chinese 'military end user,' with a specific concern for their use in China's military-civil fusion strategy," Energy Transfer said in a filing with the Securities Exchange Commission.
Energy Transfer said it intends to file for an emergency authorization to continue exporting ethane to all its customers, including end-users in China, and would apply for a license.
"Also at this time, (Energy Transfer) cannot determine how alternative markets and uses will develop nor the potential impact on the price of ethane, which is produced in the United States as a co-product in the production of crude oil and natural gas," the company said.
"Ethane is typically used as a raw material in the production of ethylene, a basic petrochemical product," Energy Transfer said, adding it "cannot determine how this restriction may indirectly impact U.S. crude oil and natural gas production and prices."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
The moves by the government mark the latest development in the trade tensions between the U.S. and China.
Enterprise said it received notice on Tuesday that the BIS intended to deny the company's emergency authorization requests (EARs) for three proposed ethane cargoes for China, totaling about 2.2 million barrels. Enterprise made the requests after it said it was notified by the BIS on May 29 of new licensing requirements for exports of "ethane and butane, saturated, having a purity of 95% or more by volume" to China. For more information, see June 4, 2025, article - U.S. Restrictions on Ethane, Butane Exports Could Disrupt Oil Markets.
Enterprise said the butane licensing requirement was subsequently dropped.
In a press release, Enterprise said it had up to 20 days to respond to BIS "with any comments or rebuttals with regard to these affected EARs. Unless Enterprise is advised by the 45th day after the date of the notification, these denials will become final without further notice."
Enterprise is a major player in the ethane export market and is among a long list of companies that could be greatly affected by export restrictions, said Industrial Info Vice President of Energy Services Jesus Davis.
As if to underscore the significance of the BIS's actions, Enterprise noted that U.S. ethane exports to China were approximately 227,000 barrels per day (BBL/d) in 2024, representing 8% of total U.S. ethane production and 46% of total U.S. ethane exports, according to the U.S. Energy Information Administration. Enterprise's marine export terminal on the Houston Ship Channel loaded approximately 213,000 BBL/d of ethane in 2024 of which approximately 40%, or 85,000 BBL/d, were destined to Chinese markets.
Enterprise added that it estimates total U.S. ethane exports to China have increased to approximately 290,000 BPD in 2025.
Meanwhile, Energy Transfer said it received notice on Tuesday that the BIS required the company to apply for a license to ship ethane "when a party to the transaction is located in China, or is a Chinese 'military end user,' wherever located, except for certain eligible license exceptions."
The BIS "has determined that such exports, reexports, or transfers (in-country) pose an unacceptable risk of use in or diversion to a 'military end use' in China or for a Chinese 'military end user,' with a specific concern for their use in China's military-civil fusion strategy," Energy Transfer said in a filing with the Securities Exchange Commission.
Energy Transfer said it intends to file for an emergency authorization to continue exporting ethane to all its customers, including end-users in China, and would apply for a license.
"Also at this time, (Energy Transfer) cannot determine how alternative markets and uses will develop nor the potential impact on the price of ethane, which is produced in the United States as a co-product in the production of crude oil and natural gas," the company said.
"Ethane is typically used as a raw material in the production of ethylene, a basic petrochemical product," Energy Transfer said, adding it "cannot determine how this restriction may indirectly impact U.S. crude oil and natural gas production and prices."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
