Enterprise Products: Trump “weaponizing” ethane exports to China backfires against U.S.

Co-Co-Co-JIM TeAGUE released its participation during the profit call on July 28, about two months after the US Department of Commerce temporarily banned exports of ethane to China as a negotiating tool to negotiate a commercial agreement after China has provided restrictions on exports of some rare ground minerals to Tauge in the United States.

In July, both countries raised their restrictions as part of the commercial truce while a long -term trade agreement is negotiated, which are still pending.

“We were clear about the risk of exporting American energy,” Tig said in the profit call. “These types of procedures rarely hurt the intended target and often harm our industry more.”

China is largely the largest importer of American ethane – it is the most common building building block for petrochemical and plastic around the world. The United States is the only main source of ethan, which makes China totally depend on America’s exports. Nearly half of all American ethane exports go to China, and shipments are not easily directed to other countries. Enterprise (No. 78 in The Fortune 500) is the leading Ethan company from the ship’s channel in Houston.

“We are lucky that this administration understands the important importance of global energy and trade, even if the Ministry of Commerce may need a simple reminder,” said Tig. “Unfortunately, we can face similar challenges in the future.”

Specifically, the Ministry of Commerce was temporarily required for institutions and other exporters to apply for special federal licenses to export ethane and butane to China for the declared cause of “unacceptable danger”, and natural gas fluids can be used to “use the military party”.

The CEO of the Foundation, Tony Chuvannik, said that the actions of the Ministry of Commerce cost the Corporation at least one ethane agent who was not from China.

“What you did and where was a problem, you really have been at risk to the American brand to obtain reliable supplies and energy security when you cut a contradictory party like this,” said Choufannik about the actions of the Ministry of Commerce. “It was annoying, but in the short term, we were able to manage it by mixing the diverse contract.”

Regardless of China, he said that Enterprise charges Ethan to Mexico, Brazil, Europe, India, Vietnam and Thailand.

Searching for alternatives

In a new report, East Daley Analytics said that China may look forward to developing alternatives to ethane for us to avoid geopolitical disorders. China can push the Middle East and European countries to increase the development of its ethane exports to diversify supplies.

“In recent years, the United States has been the calm power of global petrochemical – lead, abundant, and is supposed to be isolated from political geography. This assumption is no longer carried.” “The American -Chinese trade war has revealed a critical fact: There is no global alternative to us on a large scale. It was never a stable extract in the commercial policy of commercial policy and the risk of demand for a long session.”

Meanwhile, Enterprise only multiplies on EThane and Bobin Exports, including the expansion of Houston SHIP channels.

Enterprise also opened this month the first phase of the new Ethane Export Terminal Needs River in Texas near Louisiana’s borders. The attachment will initially be able to charge 120,000 barrels of ethane per day. The second stage, which comes online in the first half of 2026, will double the export capacity to 300,000 barrels per day.

It is usually produced as a secondary product along with oil or natural gas, as natural gas sizes in the United States doubled more than a decade to more than 7 million barrels per day, approximately 6 million barrels of which are ethane, propan and butane, according to the US Energy Information Administration (EIA). This rise has sparked a boom in building the petrochemical factory in the United States, as well as the increasing export markets because local supplies now go beyond demand. Ethan is usually converted into petrochemical ethylene, which is used to make products such as polyethylene, the most common plastic in the world.

Tig said: “The appetite for us is still strong in us in Asia and Europe,” Tig said.