U.S. EIA Forecasts New Export Licensing Requirements Will Reduce U.S. Ethane Exports - CleanTechnica

The U.S. Energy Information Administration (EIA) forecasts a significant decline in U.S. ethane exports due to newly imposed export licensing requirements targeting shipments to China. Specifically, exports are expected to drop by 80,000 barrels per day (b/d) in 2025 and by 177,000 b/d in 2026. This reduction stems from the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) requiring special licenses for ethane exports to China, citing concerns that ethane could be used for military purposes. China, which accounted for 47% of U.S. ethane exports in 2024, receives all its ethane from two Gulf Coast terminals operated by Enterprise and Energy Transfer in Texas. The licensing restrictions have led to delays and idling of several Very Large Ethane Carriers (VLECs) that were destined for China. Ethane, a byproduct extracted during natural gas processing, is primarily used to produce ethylene