Enterprise Products Condemns Trump Ethane Export Ban as Self-Defeating 50% China Reliance Risks Market Trust

Enterprise Products Partners, a leading U.S. energy infrastructure firm, has criticized the Trump administration’s temporary ban on ethane exports to China as a self-defeating trade strategy. During a July 28 earnings call, Jim Teague, co-CEO of the company and a prominent Trump supporter, argued that such actions “rarely hurt the intended target and often backfire,” ultimately harming U.S. energy companies instead [1]. The U.S. Commerce Department imposed the ban in May 2025 as a negotiating tool in response to Chinese restrictions on rare earth metal exports. Both nations recently suspended the restrictions as part of a truce, but Teague highlighted the risks of using energy exports as a geopolitical weapon.

The administration’s policy required Enterprise and other exporters to secure federal licenses to ship ethane and butane to China, citing concerns about potential military use. Enterprise, which dominates U.S. ethane exports through its Houston Ship Channel terminal, faced immediate consequences: at least one non-Chinese customer was lost due to the regulatory uncertainty [1]. Executive Vice President Tony Chovanec emphasized that the ban undermined the U.S. reputation for reliable energy supply, calling it “disruptive” and damaging to long-term market trust [1].

China remains the largest importer of U.S. ethane, accounting for roughly half of all exports. As the sole major global ethane exporter, the U.S. holds a near-monopoly in the market, with ethane serving as a critical feedstock for plastics and petrochemicals. East Daley Analytics, a market research firm, warned that the trade conflict has exposed the fragility of this supply chain. The firm suggested China may now seek alternatives, such as Middle Eastern or European ethane producers, to diversify its sources and mitigate geopolitical risks [1].

Despite the challenges, Enterprise is expanding its ethane export infrastructure. The company recently opened the first phase of its Neches River Terminal in Texas, capable of shipping 120,000 barrels of ethane daily, with a second phase expected to double capacity by 2026. Teague highlighted strong global demand for U.S. ethane and ethylene, noting Asia and Europe remain key markets [1].

The controversy underscores broader tensions in U.S.-China trade relations. While the temporary ban was lifted, the administration’s approach reflects a pattern of using energy exports as leverage—a strategy Teague and industry analysts argue prioritizes short-term political goals over long-term economic stability. Chovanec added that the incident highlighted the need for clearer federal guidelines to prevent future disruptions [1].

Source: [1] [Enterprise Products: Trump “weaponizing” ethane exports ...] [https://fortune.com/2025/07/28/enterprise-products-trump-weaponizing-ethane-exports-china-backfires/]