Latest news with #ArathySomasekhar
Yahoo
17 hours ago
- Business
- Yahoo
Enterprise Products says US set to deny export of three ethane cargoes to China
By Arathy Somasekhar and Georgina McCartney HOUSTON (Reuters) -Enterprise Products Partners said on Wednesday it received notice that the U.S. Commerce Department intends to deny its requests to export three proposed cargoes of ethane, totaling around 2.2 million barrels, to China. The U.S. and China are locked in an ongoing trade war after U.S. President Donald Trump imposed sweeping tariffs in early April. Pipeline and terminal operator Enterprise said last week that its ethane and butane exports could be hurt by a Department of Commerce requirement that it apply for a license to export to China. The company is one of the top U.S. handlers of ethane and butane through its port terminals. The Bureau of Industry and Security, an agency of the Department of Commerce, informed Enterprise in a letter two weeks ago that exports of ethane and butane pose an unacceptable risk of military end-use in China, according to a company filing. Enterprise said it has up to twenty days to respond to the BIS's notice about the denied export cargoes with any comments or rebuttals. Unless the company is advised otherwise by the BIS by the 45th day after the original notification, the denials will become final. The BIS did not immediately respond to a request for comment. The U.S. last week ordered a broad swathe of companies to stop shipping goods, including ethane and butane, to China without a license and revoked licenses already granted to certain suppliers. Ethane and butane, liquids separated from natural gas, are used to make plastics and chemicals and also for heating and cooking. Chinese petrochemical firms use ethane as a feedstock because it is a cheaper alternative than naphtha, while U.S. oil and gas producers need China to buy their natural gas liquids as domestic supply exceeds demand. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
US ethane exports to China hit new roadblock with licence requirement
By Siyi Liu and Arathy Somasekhar SINGAPORE/HOUSTON (Reuters) -Chinese purchases of U.S. ethane, a key petrochemical feedstock, face fresh uncertainty after the Commerce Department told exporters to seek licences to export to China, according to trade sources and shipping data. Washington ordered a broad swathe of companies to stop shipping goods, including ethane and butane, to China without a licence and revoked licences already granted to some suppliers, Reuters reported on Wednesday. The move is the latest disruption in Chinese purchases of U.S. ethane, which hit a record of 492,000 barrels per day in 2024, or nearly half of U.S. exports, according to the U.S. Energy Information Administration. Early last month, China increased levies on imports of U.S. goods to 125% but waived the tariff for petrochemical producers who rely on the United States. for almost all their ethane imports. At least two Very Large Gas Carriers were waiting at U.S. ports to load ethane this week while 15 more tankers are headed to, or waiting off, the U.S. Gulf Coast, to load about 284,000 bpd of ethane in June, Kpler data showed. "It's going to be a major issue if all exports are suspended," said a Chinese ethane importer, who sought anonymity because he is not authorised to speak to media. "We are cautiously watching if exporters can obtain new export licences soon." VLGC Pacific Ineos Grenadier was supposed to load ethane for Ineos at Enterprise Products Partners' Morgan's Point terminal at La Porte, Texas, has docked there since last Friday, Kpler and LSEG data showed. Stl Qianjiang is anchored near Energy Transfer's Nederland terminal, due to load ethane for Chinese petrochemical firm Satellite Chemical, the data showed. Enterprise, Energy Transfer and Ineos did not immediately respond to requests for comment outside office hours while Satellite Chemical could not be reached for comment. "The market disruption could be immediate," Julian Renton, an analyst at East Daley Analytics, said in a note. A trade source said Ineos, which also buys ethane for its plants in Europe, may divert its cargo there. In a filing, Enterprise, a top handler of ethane and butane, said it was evaluating its procedures and internal controls and could not determine if it would be able to get a licence. Traders said there may be limited near-term impact on Chinese operators, as they have sufficient stocks. East Daley's Renton said if the restriction holds, Chinese petrochemical plants could face critical feedstock shortfalls, while projects may stall. Chinese petrochemical firms use ethane as a cheaper feedstock alternative to naphtha, while U.S. oil and gas producers count on China to buy their natural gas liquids as domestic supply exceeds demand. Shares of ethane importers Satellite Chemical were down 3.1% on Friday, while Wanhua Chemical stock lost 1.3%.
Yahoo
10-05-2025
- Business
- Yahoo
U.S. exports of natural gas liquids touch record high in April
By Arathy Somasekhar and Georgina McCartney HOUSTON (Reuters) -U.S. exports of natural gas liquids touched a record high in April, even as a trade war between the U.S. and China cut shipments to the top buyer, ship tracking data showed. The recent trade developments have threatened U.S. exports of natural gas liquids (NGLs), such as ethane, butane and propane, used to make plastics and chemicals as well as for heating and cooking. U.S. exports have hit a new high every year since 2010 thanks to an abundance of cheap shale natural gas. NGLs, primarily extracted from raw natural gas during processing, are the latest energy products ensnared in the escalating trade war between the world's two largest economies. Nearly half of U.S. ethane exports go to China, and all of China's ethane imports come from the U.S. with practically no options for alternative sources, according to the statistical arm of the U.S. government. Chinese petrochemical firms use it as feedstock because it is a cheaper than alternative naphtha, while U.S. oil and gas producers need China to buy their natural gas liquids as domestic supply exceeds demand. The U.S. exported about 2.9 million barrels per day (bpd) of NGLs in April, a record high, data from ship tracking firms Kpler and Vortexa showed. But exports to China fell 35% to 619,000 bpd in the month, Kpler data showed, the lowest since November 2023. China waived the 125% tariff on ethane imports from the U.S. imposed earlier this month, two sources told Reuters this week. Other countries increased their purchases of U.S. NGLs in the global rerouting, making up for the U.S.'s loss of Chinese buying. India more than tripled its purchase to a record high of 179,000 barrels per day, Kpler data showed. Brazil more than doubled its purchases to 113,000 bpd, the highest in five years, while Japan, the second largest buyer of U.S. natural gas liquids, stepped up shipments by 64% to nearly 400,000 bpd, the highest since February 2023. U.S. production of ethane will rise 3.6% to 2.9 million bpd this year, the Energy Information Administration forecast, adding that most of this growth in production will be exported to supply growing international demand. "The market has already gone to work rerouting barrels between the world's biggest liquefied petroleum gas (a mix of propane and butane) suppliers, the U.S. and the Middle East, and the biggest importing countries being China and India," said Jim Teague, co-chief executive officer Enterprise Products Partners, one of the top exporters of U.S. natural gas liquids, in a quarterly earnings call. The company said it was not seeing a disruption of any of its exports of ethane, propane or butane. Rival Energy Transfer, also among the largest exporters of U.S. NGL, said it was not having a problem finding a home for its ethane or LPG. Enterprise Products said total NGL pipeline transportation volumes rose 5%, while marine terminal volumes climbed 11%. Energy Transfer's NGL transportation volumes were up 4% in the first quarter, while exports were up 5%.
Yahoo
09-05-2025
- Business
- Yahoo
Shell faces delays on two wells at offshore Perdido development in US Gulf
By Arathy Somasekhar HOUSTON (Reuters) -Shell, the top U.S. offshore producer, said this week that two of its wells to boost production at the Perdido offshore development were delayed to the end of the year, while one was brought online in March. All three wells, part of Perdido's Great White unit, were originally expected to be online in April and set to produce up to 22,000 barrels of oil equivalent per day (boepd) at peak rates, expanding output from the platform. Perdido, which began production in 2010, has an output capacity of 125,000 boepd at peak rates. Shell is the operator of the field with a 35% working interest, while Chevron and others hold the remaining stake. Shell in December had also announced plans to bring online two additional wells as a part of the Silvertip unit to boost Perdido's output. These wells are expected to collectively produce up to 6,000 boepd at peak rates, with first oil expected in 2026. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
U.S. exports of natural gas liquids touch record high in April
By Arathy Somasekhar and Georgina McCartney HOUSTON (Reuters) -U.S. exports of natural gas liquids touched a record high in April, even as a trade war between the U.S. and China cut shipments to the top buyer, ship tracking data showed. The recent trade developments have threatened U.S. exports of natural gas liquids (NGLs), such as ethane, butane and propane, used to make plastics and chemicals as well as for heating and cooking. U.S. exports have hit a new high every year since 2010 thanks to an abundance of cheap shale natural gas. NGLs, primarily extracted from raw natural gas during processing, are the latest energy products ensnared in the escalating trade war between the world's two largest economies. Nearly half of U.S. ethane exports go to China, and all of China's ethane imports come from the U.S. with practically no options for alternative sources, according to the statistical arm of the U.S. government. Chinese petrochemical firms use it as feedstock because it is a cheaper than alternative naphtha, while U.S. oil and gas producers need China to buy their natural gas liquids as domestic supply exceeds demand. The U.S. exported about 2.9 million barrels per day (bpd) of NGLs in April, a record high, data from ship tracking firms Kpler and Vortexa showed. But exports to China fell 35% to 619,000 bpd in the month, Kpler data showed, the lowest since November 2023. China waived the 125% tariff on ethane imports from the U.S. imposed earlier this month, two sources told Reuters this week. Other countries increased their purchases of U.S. NGLs in the global rerouting, making up for the U.S.'s loss of Chinese buying. India more than tripled its purchase to a record high of 179,000 barrels per day, Kpler data showed. Brazil more than doubled its purchases to 113,000 bpd, the highest in five years, while Japan, the second largest buyer of U.S. natural gas liquids, stepped up shipments by 64% to nearly 400,000 bpd, the highest since February 2023. U.S. production of ethane will rise 3.6% to 2.9 million bpd this year, the Energy Information Administration forecast, adding that most of this growth in production will be exported to supply growing international demand. "The market has already gone to work rerouting barrels between the world's biggest liquefied petroleum gas (a mix of propane and butane) suppliers, the U.S. and the Middle East, and the biggest importing countries being China and India," said Jim Teague, co-chief executive officer Enterprise Products Partners, one of the top exporters of U.S. natural gas liquids, in a quarterly earnings call. The company said it was not seeing a disruption of any of its exports of ethane, propane or butane. Rival Energy Transfer, also among the largest exporters of U.S. NGL, said it was not having a problem finding a home for its ethane or LPG. Enterprise Products said total NGL pipeline transportation volumes rose 5%, while marine terminal volumes climbed 11%. Energy Transfer's NGL transportation volumes were up 4% in the first quarter, while exports were up 5%.
