Communicator

SP Chemical completed the first gas-based cracker in Taixing, China, in 2019, producing 780,000 tpa ethylene and 150,000 tpa propylene.

February 7, 2025 | SINGAPORE (Reuters)

Despite growing trade tensions between Washington and Beijing, China's ethane imports from the United States are expected to rise significantly in 2025 as petrochemical producers seek cheaper feedstock alternatives. Major Chinese companies are investing over $16 billion in infrastructure improvements to accommodate this growth.

Industry analysts forecast China's ethane imports to reach between 6.3 million and 8.2 million metric tons in 2025, representing an increase of 9% to 34%. The U.S. Energy Information Administration projects its net ethane exports to rise 6% to 520,000 barrels per day, with China expected to absorb most of this increase.

However, two main factors currently constrain this trade growth: limited U.S. export capacity and a shortage of specialized tankers. To address these limitations, U.S. pipeline operators Energy Transfer and Enterprise Products Partners are expanding their terminal capacities.

China has also demonstrated its commitment to increasing ethane imports by reducing its import tariff to 1% in 2025, down from 2% in 2024. Enterprise CEO Jim Teague remains optimistic about the trade relationship, noting that Chinese dependence on imported propane and ethane should protect this segment from broader trade tensions.

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