Enterprise Products reports notice of intent to deny EARs on 3 cargoes to China

Enterprise Products (EPD) Partners announced that yesterday, June 3, Enterprise received notice from the U.S. Department of Commerce’s Bureau of Industry and Security of BIS’s intent to deny Emergency Authorization Requests with regard to three proposed cargoes of ethane to China, totaling approximately 2.2 million barrels. Per the Notice, Enterprise has up to twenty days to respond to BIS with any comments or rebuttals with regard to these affected EARs. Unless Enterprise is advised by the 45th day after the date of the notification, these denials will become final without further notice. As previously disclosed on May 29, on the afternoon of Friday, May 23, BIS notified Enterprise of new licensing requirements for exports of “ethane and butane, saturated, having a purity of 95 percent or more by volume” to China. This new licensing requirement was effective immediately. Enterprise’s marine export terminal on the Houston Ship Channel loaded approximately 213,000 BPD of ethane in 2024 of which approximately 40%, or 85,000 BPD, were destined to Chinese markets. Ethane exports destined to China from Enterprise’s Morgan’s Point facility in 2024 represented only 37% of total U.S. ethane exports to China for 2024. Currently, Enterprise estimates that total U.S. ethane exports to China has increased to approximately 290,000 BPD in 2025.