U.S. Ethane Exports Face Licensing Hurdles After China Lifts Tariffs

China has waived a short-lived 125% tariff on U.S. ethane imports, but American shipments to China could be hindered by a U.S. requirement of export licenses. Ethane, a natural gas liquid primarily extracted from raw natural gas during processing, is mainly used as a feedstock for ethylene production, one of the most important building blocks in the petrochemical industry. China has waived a 125% tariff on U.S. ethane imports it had levied in early April. The tariff removal led EIA to expect strong growth in U.S. ethane production and exports.…