An ethane tanker that loaded in the United States headed to India on Wednesday, ship tracking data showed, after Washington required US exporters to seek licenses to ship the shale gas to top buyer China.

Around half of all US ethane exports head to China, where it is used by the petrochemical industry. The vessel's change in destination underscores how the fallout from trade tensions between the United States and China is shifting ethane flows.

Liberia-flagged STL Qianjiang, which loaded at Energy Transfer's Nederland terminal for China's Satellite Chemical, signaled Dahej, a port on the West Coast of India, as its destination, according to LSEG and Kpler ship tracking data.

The final buyer of the cargo is Reliance Industries, Kpler data showed, citing the vessel's bill of lading.

The ship has traversed only between the United States and Satellite Chemical's Lianyungang petrochemical facility since July 2022, according to historic data on Kpler.

Energy Transfer, Satellite Chemical and Reliance did not immediately reply to a request for a comment.

Energy Transfer and Enterprise Products Partners, two of the top US ethane producers and exporters, said they have received letters from the US Commerce Department requiring the companies to apply for a license to ship ethane to China.

Enterprise said it also received a notice from the US government of its intent to deny emergency requests for three proposed export cargoes of ethane totalling around 2.2 million barrels to China.

Chinese petrochemical firms use ethane as a feedstock because it is a cheaper alternative than naphtha, while U.S. oil and gas producers need China to buy their natural gas liquids as domestic supply exceeds demand.

Published on June 12, 2025