Enterprise Products Partners (EPD) is confronting challenges regarding its ethane and butane exports to China following new U.S. Department of Commerce regulations that now require companies to apply for a license to export to China.
New U.S. Licensing Rule Impacts Exports
The U.S. has imposed a broad requirement on numerous companies, including Enterprise, to halt shipments of goods such as ethane and butane to China without an official license. This move has revoked previously granted licenses for certain suppliers, complicating the export process for firms like Enterprise. The company has stated that it is currently assessing its internal procedures and whether it will be able to secure the necessary licenses for future shipments.
Potential Impact on Enterprise’s Export Operations
Enterprise operates marine export terminals, including a significant facility on the Houston Ship Channel. The terminal loaded an average of 213,000 barrels per day (BPD) of ethane in 2024, with 40% of that total—approximately 85,000 BPD—exported to China. The new regulatory framework could have significant implications for these shipments, which are a critical part of Enterprise’s export strategy.
Evaluating Future Export Prospects
While the company works to understand how the new licensing requirement will affect its operations, there is uncertainty surrounding the ability to continue meeting China’s demand for ethane and butane. The regulatory change highlights the ongoing trade tensions and could potentially disrupt key export routes for Enterprise, which will need to adjust its operations accordingly.
