US Export Controls on Ethane May Hinder Transactions with Chinese Firms, Energy Transfer Warns

US Export Controls on Ethane Could Make Transactions with Chinese Firms "More Difficult," Energy Transfer Says. Energy Transfer, a US-based company, has expressed concerns that new US export controls on ethane could make transactions with Chinese firms more difficult. The controls aim to limit the export of US-made goods and technology to China, a move that could impact the company's business dealings with Chinese partners.

Energy Transfer, a prominent US-based company in the energy sector, has expressed concerns that new US export controls on ethane could complicate transactions with Chinese firms. The controls, aimed at limiting the export of US-made goods and technology to China, could significantly impact Energy Transfer's business dealings with Chinese partners. This development follows recent restrictions on ethane exports to China, which were later lifted but caused significant delays and disruptions in shipments [1].

Energy Transfer's co-CEO, Marshall McCrea, stated during a post-earnings conference call that the export curbs have "put a little bit of a black eye on us, on our industry, on our country." The company, which is one of the top US exporters of ethane, expects that Chinese petrochemical firms may be more hesitant to contract with them due to the recent disruptions [1].

Enterprise Products Partners, another leading US midstream energy company, has also warned that these export curbs compromised the US brand for reliable supply and energy security. Jim Teague, CEO of Enterprise Products, noted that at least one non-Chinese company that was in discussions with them about contracting ethane decided to contract naphtha instead [1].

The lifting of restrictions on ethane exports to China was seen as a potential game-changer for the petrochemical industry and global trade. However, the recent export controls have introduced new challenges and uncertainties. Energy Transfer's concerns highlight the potential impact of these controls on the energy sector's ability to conduct business with China.

In a separate earnings call, Energy Transfer announced its second-quarter 2025 results, reporting a 11.5% decline in net income and revenue below estimates. The company highlighted the challenges posed by the export curbs and the impact on its business operations [3].

The long-term impact of these export controls on the ethane market and global petrochemical industry remains uncertain. While the lifting of restrictions offered opportunities for growth and investment, the recent controls have introduced new challenges that companies like Energy Transfer and Enterprise Products will need to navigate.

References:

[1] https://www.datainsightsmarket.com/news/article/us-lifts-ethane-export-ban-to-china-boon-for-enterprise-products-68603
[2] https://finance.yahoo.com/news/us-ethane-curbs-contracting-china-223332390.html
[3] https://seekingalpha.com/news/4481071-energy-transfer-outlines-5_3b-desert-southwest-pipeline-project-as-company-narrows-2025