Latest news with #GeorginaMcCartney
Yahoo
3 days ago
- Business
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US ethane vessels stall amid curbs on exports to China
By Arathy Somasekhar, Georgina McCartney and Trixie Yap HOUSTON/SINGAPORE (Reuters) -Over half a dozen U.S.-loaded ethane vessels, originally bound for China, have stalled around the U.S. Gulf Coast after Washington requested U.S. exporters seek licenses to ship the shale gas to the top buyer, according to trade sources and ship tracking data on Friday. Around half of all U.S. ethane exports head to China, and the halt in flows has pushed ethane prices lower on worries of domestic oversupply and is likely to cut into profits of top ethane producers. Energy Transfer and Enterprise Products Partners, two of the largest ethane producers and exporters, have warned the disruptions could impact their exports. The U.S. Commerce Department has also denied some vessels emergency authorization requests to export to China. Liberia-flagged STL Qianjiang, which loaded at Energy Transfer's Nederland terminal for China's Satellite Chemical, was anchored off the coast on Friday in the Gulf, according to LSEG and Kpler ship tracking data. Energy Transfer, which produces ethane by extracting it from natural gas and then exports it from terminals along the Gulf Coast, said it received a letter from the U.S. Commerce Department on June 3 requiring the company to apply for a license to ship ethane to China. The company and Satellite Chemical did not reply to requests for comments on the vessel. Three other vessels, which were set to load in early June, were anchored in the U.S. Gulf near Houston and Port Arthur, Texas, while three others hovered further south in the water after having slowed down. Meanwhile, Liberia-flagged very large ethane carrier (VLEC) Pacific Ineos Grenadier, which loaded at Enterprise Products Partners' terminal in Morgan's Point, Texas, and had been originally destined for China, was anchored at an Enterprise dock along the Houston Ship Channel on Friday after heading away from the Gulf Coast on Thursday. The ship had not discharged on Friday afternoon and it was not immediately clear if it would. Enterprise has natural gas liquids storage facilities along the ship channel. The vessel, a part of British petrochemical firm Ineos' fleet, has been used by the company exclusively for transit between the United States and China since August 2023, according to Kpler data. Enterprise Products Partners received the license requirement letter in late May, and on Wednesday said it received a notice from the U.S. government of its intent to deny emergency requests for three proposed export cargoes of ethane totaling around 2.2 million barrels to China. Enterprise has 20 days to respond to the denial, it said on Wednesday. Unless otherwise notified by the government by the 45th day after receiving the notification, the denials will become final. Enterprise and Ineos declined to comment. "With the curbs on U.S. ethane (exports), these ships are now struggling to move any cargo. So they are either just drifting out at sea or in a neutral direction hoping things resolve themselves with the recent meeting between U.S. and China," an executive at a ship brokering firm said. 'NO IMMEDIATE ALTERNATIVE MARKETS' U.S. ethane production touched a record 2.8 million barrels per day (bpd) in 2024, according to the Energy Information Administration, and was expected to rise to 3.1 million bpd by next year. Most of the output growth was expected to be exported to meet international demand as domestic consumption will likely hold steady. Exports also climbed to a record 492,000 bpd last year, of which about 227,000 bpd, or 46%, headed to China. "These are distressed cargoes at this point. I would expect these to have been sold at significant discounts," said Uday Turaga, founder of energy research and consulting firm ADI Analytics. "Without China, there are no immediate alternative markets for vast U.S. ethane exports, directly impacting prices and profit for major U.S. producers due to specialized trade contracts," he said. The letters from the Bureau of Industry and Security, an agency of the U.S. Commerce Department, said exports of ethane pose an unacceptable risk of military end-use in China, according to both companies' filings. 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.
Yahoo
3 days ago
- Business
- Yahoo
US ethane vessels stall amid curbs on exports to China
By Arathy Somasekhar, Georgina McCartney and Trixie Yap HOUSTON/SINGAPORE (Reuters) -Over half a dozen U.S.-loaded ethane vessels, originally bound for China, have stalled around the U.S. Gulf Coast after Washington requested U.S. exporters seek licenses to ship the shale gas to the top buyer, according to trade sources and ship tracking data on Friday. Around half of all U.S. ethane exports head to China, and the halt in flows has pushed ethane prices lower on worries of domestic oversupply and is likely to cut into profits of top ethane producers. Energy Transfer and Enterprise Products Partners, two of the largest ethane producers and exporters, have warned the disruptions could impact their exports. The U.S. Commerce Department has also denied some vessels emergency authorization requests to export to China. Liberia-flagged STL Qianjiang, which loaded at Energy Transfer's Nederland terminal for China's Satellite Chemical, was anchored off the coast on Friday in the Gulf, according to LSEG and Kpler ship tracking data. Energy Transfer, which produces ethane by extracting it from natural gas and then exports it from terminals along the Gulf Coast, said it received a letter from the U.S. Commerce Department on June 3 requiring the company to apply for a license to ship ethane to China. The company and Satellite Chemical did not reply to requests for comments on the vessel. Three other vessels, which were set to load in early June, were anchored in the U.S. Gulf near Houston and Port Arthur, Texas, while three others hovered further south in the water after having slowed down. Meanwhile, Liberia-flagged very large ethane carrier (VLEC) Pacific Ineos Grenadier, which loaded at Enterprise Products Partners' terminal in Morgan's Point, Texas, and had been originally destined for China, was anchored at an Enterprise dock along the Houston Ship Channel on Friday after heading away from the Gulf Coast on Thursday. The ship had not discharged on Friday afternoon and it was not immediately clear if it would. Enterprise has natural gas liquids storage facilities along the ship channel. The vessel, a part of British petrochemical firm Ineos' fleet, has been used by the company exclusively for transit between the United States and China since August 2023, according to Kpler data. Enterprise Products Partners received the license requirement letter in late May, and on Wednesday said it received a notice from the U.S. government of its intent to deny emergency requests for three proposed export cargoes of ethane totaling around 2.2 million barrels to China. Enterprise has 20 days to respond to the denial, it said on Wednesday. Unless otherwise notified by the government by the 45th day after receiving the notification, the denials will become final. Enterprise and Ineos declined to comment. "With the curbs on U.S. ethane (exports), these ships are now struggling to move any cargo. So they are either just drifting out at sea or in a neutral direction hoping things resolve themselves with the recent meeting between U.S. and China," an executive at a ship brokering firm said. 'NO IMMEDIATE ALTERNATIVE MARKETS' U.S. ethane production touched a record 2.8 million barrels per day (bpd) in 2024, according to the Energy Information Administration, and was expected to rise to 3.1 million bpd by next year. Most of the output growth was expected to be exported to meet international demand as domestic consumption will likely hold steady. Exports also climbed to a record 492,000 bpd last year, of which about 227,000 bpd, or 46%, headed to China. "These are distressed cargoes at this point. I would expect these to have been sold at significant discounts," said Uday Turaga, founder of energy research and consulting firm ADI Analytics. "Without China, there are no immediate alternative markets for vast U.S. ethane exports, directly impacting prices and profit for major U.S. producers due to specialized trade contracts," he said. The letters from the Bureau of Industry and Security, an agency of the U.S. Commerce Department, said exports of ethane pose an unacceptable risk of military end-use in China, according to both companies' filings. 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
5 days ago
- Business
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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
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
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%.
