US-loaded ethane vessel heads to India after China export curbs

By Admin

13 Jun, 2025

In a striking shift triggered by escalating trade tensions, a U.S.-loaded ethane tanker originally destined for China has changed course and is now heading to India. The development marks a significant pivot in global ethane trade dynamics and showcases how regulatory decisions are reshaping energy flows across continents.

Redirection Amidst New Licensing Requirements

The Liberia-flagged vessel STL Qianjiang, which previously operated exclusively between the United States and China, has now signaled Dahej port on India’s West Coast as its new destination. This redirection comes in the wake of a new U.S. policy requiring exporters to obtain licenses to ship ethane a byproduct of shale gas to China.

Previously, around half of all U.S. ethane exports were destined for China, where the petrochemical industry utilizes ethane as a cost-effective alternative to naphtha. The new export control measures introduced by the U.S. Commerce Department are already causing ripple effects across the global supply chain.

Reliance Industries: The New Buyer

According to shipping intelligence firms LSEG and Kpler, STL Qianjiang had loaded ethane at Energy Transfer’s Nederland terminal, originally for delivery to China’s Satellite Chemical. However, the vessel's bill of lading now lists India’s Reliance Industries as the final buyer. This represents a notable shift, as the ship had only traveled between the U.S. and Satellite Chemical’s Lianyungang facility in China since July 2022.

Exporters Caught in Trade Turbulence

Top U.S. ethane exporters such as Energy Transfer and Enterprise Products Partners have confirmed receiving letters from the U.S. government mandating them to apply for licenses to continue exports to China. Furthermore, Enterprise disclosed that it received notices of intent to deny emergency licenses for three planned cargoes totaling approximately 2.2 million barrels.

This regulatory tightening puts both U.S. energy producers and Chinese petrochemical firms in a difficult spot. While U.S. suppliers are grappling with excess ethane due to stagnant domestic demand, Chinese buyers are losing access to a cheaper feedstock critical to maintaining cost-effective operations.

Conclusion: A New Chapter in Ethane Trade

As geopolitical tensions evolve, this redirected shipment is more than just a one-off event it signals a potential long-term realignment in global ethane trade. With India emerging as an alternative buyer, companies like Reliance Industries may play a larger role in absorbing surplus U.S. ethane, while China may need to look inward or toward other global partners to sustain its petrochemical feedstock supply.