Exclusive US allows ethane to be loaded into China and shipped, but not loaded – Letter

By Karen Freyfeld

(Reuters) – The US on Wednesday sends a letter to Enterprise Products and Energy Transfer to let you know that ethane can be loaded into a vessel aimed at China, but could not unload ethane at Chinese ports without approval.

A letter from the US Department of Commerce follows an earlier notice to companies that have imposed licensing requirements for the export of ethane to China.

Those familiar with the issue said the risk that companies would load ethane into the ship and send them along the way was very low. If the ship is heading for China, it can be difficult to stop offloading, and businesses risk penalties of up to twice the value of ethane.

“The letter allows enterprise products to load ethane, transport and anchors into foreign ports, even if a party in China,” the letter states. “However, enterprise products may not complete such exports… to parties in China. Without further BIS permission.”

Enterprise products and energy transfers did not respond immediately to requests for comment.

The US Department of Commerce did not immediately respond to requests for comment.

The ability to commence and start transporting ethane can ease congestion at ports such as ports near Houston, where ships are stagnant amid restrictions on shipping products to China.

(Reporting by Karen Freiferd, edited by Chris Sanders and Chizu Nomiyama)