U.S. exports of natural gas liquids (NGLs) hit a record high in April, despite a trade war with China that led to a significant drop in shipments to the country.
According to ship tracking data, the U.S. exported approximately 2.9 million barrels per day (bpd) of NGLs, marking the highest monthly figure on record.
However, exports to China fell 35% to 619,000 bpd, the lowest since November 2023, as the trade dispute continues to affect shipments. China had previously imposed a 125% tariff on U.S. ethane, but waived the tariff earlier this month, sources confirmed.
Despite the decline in exports to China, other nations ramped up their purchases of U.S. NGLs. India tripled its imports to a record 179,000 bpd, while Brazil doubled its intake to 113,000 bpd, the highest in five years.
Japan, the second-largest buyer of U.S. NGLs, increased shipments by 64% to nearly 400,000 bpd, the highest since February 2023.
The U.S. Energy Information Administration forecasts a 3.6% increase in ethane production to 2.9 million bpd this year, with most of this growth being directed towards meeting growing international demand.
Industry leaders, including Jim Teague, co-CEO of Enterprise Products Partners, stated that the market had already adapted to the changes, with countries rerouting NGLs between the U.S. and the Middle East to meet demand in markets like China and India. Both Enterprise Products and rival Energy Transfer reported no disruptions in their NGL exports, with both companies seeing increases in transportation volumes for both pipelines and marine terminals.
The ongoing shift in global trade dynamics reflects the broader impact of the U.S.-China trade war on the global energy market, with companies and countries adapting to ensure steady supply and demand.
