The United States has lifted restrictions on ethane exports to China, signaling progress in the ongoing trade truce between the two nations.
On Wednesday, the U.S. Commerce Department sent letters to major exporters, including Enterprise Products Partners and Energy Transfer, revoking a license requirement imposed just weeks earlier, News.Az reports, citing Reuters.
The move clears the way for shipments to resume after a temporary halt in June.
The restrictions, originally enacted amid tensions over rare earth mineral exports from China, had brought U.S. ethane shipments, which totaled 257,000 barrels per day in May, to a standstill. Ethane is a critical petrochemical feedstock, especially valued by Chinese manufacturers for being cheaper than naphtha.
Ship tracking data showed at least eight ethane carriers were again en route to China on Wednesday, having been stalled off the U.S. Gulf Coast in recent weeks. One vessel diverted to India in June, highlighting the disruption caused by the restrictions.
The easing of restrictions follows last week’s resolution of rare earth trade issues between Washington and Beijing. With roughly half of U.S. ethane exports typically bound for China, the pause had threatened to strain both U.S. producers and Chinese buyers.
“Business as usual then,” said Vortexa analyst Samantha Hartke, adding that July exports are expected to rebound to the seasonal average of 240,000 barrels per day.
Neither the Commerce Department nor the White House has commented publicly on the decision.
