US permits ethane loading for China but bans unloading

The United States has allowed two energy companies, Enterprise Products and Energy Transfer, to load ethane onto ships headed for China, but they cannot unload it there without special permission. This decision, shared in letters from the U.S. Department of Commerce on June 25, 2025, comes after new rules were set a few weeks ago requiring licenses to export ethane to China.

Those rules caused ships to wait off the U.S. coast, halting deliveries. According to a letter seen by Reuters, Enterprise Products can load ethane, transport it, and anchor in foreign ports, even if the cargo is meant for China. However, unloading in China is not allowed without approval. This restriction makes it risky for companies to send ethane, as they could face penalties if the cargo is offloaded without permission.

The move might hint that the U.S. is considering easing these export limits, which started in late May and early June amid a trade dispute with China. Recently, China has sped up approvals for exporting rare earth minerals, suggesting both countries might be working toward resolving trade tensions. The U.S. is a major ethane supplier for China, which relies heavily on it for making plastics. This partial permission could be a step toward restarting smoother trade, but companies remain cautious due to the strict unloading rules.