On July 2, 2025, the U.S. lifted restrictions on ethane exports to China, allowing companies like Enterprise Products Partners and Energy Transfer to ship without licenses. This follows a U.S.-China agreement last week resolving issues over rare earth mineral and magnet shipments, vital for industries like automotive.

U.S. and Chinese flags are seen in this illustration taken March 20, 2025.

Export controls, introduced in May and June 2025, had paused ethane shipments, which dropped from 257,000 barrels per day in May, per Kpler data. Last week, the U.S. Department of Commerce permitted loading ethane for China, with unloading restrictions now fully lifted.

China, consuming half of U.S. ethane exports, relies on this shale gas-derived feedstock for petrochemicals, favoring it over costlier naphtha. U.S. producers benefit from China’s demand, exceeding domestic needs. On July 2, eight vessels resumed their journey to China from the U.S. Gulf Coast, where they were stalled in June. Some shipments had diverted to India.

Vortexa analyst Samantha Hartke stated: “Business as usual then,” expecting July exports to reach 240,000 barrels per day.