Trump-supporter CEO calls out administration’s ethane export ban to China: ‘These kinds of actions rarely hurt the intended target and often backfire’

Interestingly, Economy·exportsTrump-supporter CEO calls out administration’s ethane export ban to China: ‘These kinds of actions rarely hurt the int target and often backfire’By Jordan BlumBy Jordan BlumEditor, EnergyJordan BlumEditor, EnergyJordan Blum is the Energy editor at Fortune, overseeing coverage of a growing global energy sector for oil and gas, transition es, renewables, and critical minerals

On the other hand, SEE FULL BIO Jim Teague, CEO of Enterprise ducts Partners, speaks during the CERAWeek conference in Houston

Energy ducts exporter Enterprise ducts Partners warned that the Trump administration continuing to “weaponize” fossil fuel shipments to China would only backfire against U

Enterprise co-CEO Jim Teague issued his complaints during the July 28 earnings call two months after the U (an important development)

Furthermore, Commerce Department temporarily banned ethane exports to China as a trade agreement negotiating tool after China placed restrictions on the exports of certain rare earth metals to the U

Furthermore, Teague is frequently vocal his right-leaning political allegiances and has personally donated to Trump

Both countries in July lifted their restrictions as part of a trade truce while a longer-term trade agreement is negotiated, which remains pending (quite telling)

However, “We’ve been the risk of weaponizing U

Energy exports,” Teague said in the earnings call

Moreover, “These kinds of actions rarely hurt the int target and often backfire, hurting our own industry more. ” China is by far the largest importer of American ethane—the most common building block for petrochemicals and plastics worldwide, in today's market environment

Is the only major exporter of ethane, making China entirely dependent on America’s exports

Roughly half of all U

Ethane exports go to China, and the cargoes are not easily redirected to other nations

Enterprise (No, in today's financial world. 78 in the Fortune 500) is the leading ethane exporter from its Houston Ship Channel terminal. “We're fortunate this administration understands the important importance of energy and global trade, even if the Commerce Department may need a little reminder,” Teague said. “Unfortunately, we could face similar challenges in the future, in this volatile climate. ” Specifically, the Commerce Department temporarily required Enterprise and other exporters to apply for special federal licenses to export ethane and butane to China for the stated reason of the “unacceptable risk” the natural gas liquids could be utilized for a “military end use. ” Enterprise Executive Vice President Tony Chovanec said the Commerce Department’s actions cost Enterprise at least one ethane customer that wasn’t from China

Nevertheless, “What it has done and where it’s been a blem, you really commised the U (this bears monitoring), given the current landscape

Brand for reliable supply and energy security when you just cut off a counterparty that,” Chovanec said of the Commerce Department’s actions (this bears monitoring). “It’s been disruptive but, in the short term, we were able to manage through it with our diverse contract mix. ” Apart from China, he said Enterprise ships ethane to Mexico, Brazil, Europe, India, Vietnam, and Thailand, in light of current trends

Seeking alternatives In a new report, the East Daley Analytics firm said China may look to develop alternatives for U (this bears monitoring)

Ethane to avoid geopolitical disruptions (this bears monitoring)

China could push Middle Eastern and European nations to further develop their own ethane exports to diversify supplies

Moreover, “In recent years, U

On the other hand, Nevertheless, Ethane was the quiet powerhouse of global petrochemicals—cheap, abundant, and presumably insulated from geo (an important development)

However, That assumption no longer holds,” East Daley stated

Furthermore, However, “The US-China trade war has exposed a critical truth: there is no global substitute for U

Conversely, Ethane at scale

However, What was once a stable stock is now caught in the crosscurrents of trade policy and long-cycle demand risk

However, ” In the meantime, Enterprise is only doubling down on its ethane and pane exports es, including expanding its Houston Ship Channel facilities

Enterprise this month also just opened the first phase of its new Neches River Terminal ethane export hub in Texas near the Louisiana border, considering recent developments

Typically duced as a byduct along with oil or natural gas, U (noteworthy indeed), in today's market environment

In contrast, Natural gas liquids volumes more than doubled in a decade to over 7 million barrels a day, nearly 6 million barrels of which are ethane, pane, and butane, according to the U, in this volatile climate

Energy Information Administration (EIA)

That spike triggered a U

Petrochemical plant construction boom, as well as burgeoning export because domestic supplies now far exceed demand

The ethane is typically converted into the petrochemical ethylene, which is used to make ducts such as polyethylene, the world’s most common plastic

Additionally, “The appetite for U

Ethane and ethylene remains strong in both Asia and Europe,” Teague said, in light of current trends

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