Energy Transfer (ET) plans a 240 Mb/d ethane expansion at the Nederland Terminal in southeastern Texas, further strengthening its dominant position in US ethane exports.
ET said June 18 it will construct two additional NGL ship docks and expand NGL pipe capacity from Mont Belvieu to Nederland to support the expansion. All of the ethane export capacity is committed under contracts running into the 2040s, ET said.
By 2028, ET’s terminals are on track to export up to 815 Mb/d of ethane, accounting for 56% of US ethane export capacity, according to East Daley’s NGL Hub Model.
Together with Enterprise Products (EPD), the two operators will account for more than 90% of US ethane export capacity, reinforcing their dominance in a market with only a handful of competitors (see table above).
China Drives US Ethane Growth
The Nederland investment reflects confidence in sustained global ethane demand, particularly from China.
ET is uniquely positioned to capture new China demand through its 53% JV with Satellite Chemical, which includes both the Orbit export terminal and the associated ethane pipeline system. These assets provide a direct supply chain linking US ethane supply with Chinese petrochemical consumers.
The brief export restrictions imposed during spring 2025 demonstrate the resilience of the relationship. Although shipments to China temporarily declined, China remained the largest destination for US ethane exports. Following the removal of restrictions, exports quickly rebounded and resumed their upward trajectory.
The China-ethane trade has grown more compelling this year. The Iran conflict has disrupted NGL and naptha trade from the Middle East, raising costs in Asia for competing feedstocks, while US ethane prices have stayed low.
As a result, Chinese steam crackers remain incentivized to maximize ethane consumption, reinforcing the long-term relationship between US ethane suppliers and Chinese petrochemical demand.
Infrastructure constraints are also easing. East Daley projects the global very large ethane carrier (VLEC) fleet will nearly double by the end of 2028, with ~87% of new vessels entering service by YE27. Combined with expanding US export capacity, the fleet buildout removes another potential bottleneck to growth.
Taken together, expanding export infrastructure, improving feedstock economics, and growing shipping capacity are all compelling evidence that the global ethane market remains in a sustained growth cycle. – Sam Chen Tickers: EPD, ET
One Market, One Model: Gain a Holistic View of North America Supply & Demand
East Daley Analytics is pleased to announce the Canada Supply & Demand report. The Canada S&D completes our North American model, providing a fully integrated supply and demand forecast for crude oil and natural gas. East Daley follows molecules from Canadian production through US infrastructure to end-markets. Clients now have a continental view to anticipate trends, from how Canadian gas is reshaping Midwest markets, to how crude imports flow to Gulf Coast refiners. The Canada S&D report and dataset is available exclusively in Energy Data Studio. Reach out to learn more about East Daley’s North American energy model.
Reading the Signals: Staying Ahead of Gas, Crude & NGL Markets Through Year-End
Volatility is defining today’s energy markets, and East Daley’s July webinar will help you make sense of what’s next.
Prices are the signal producers can’t ignore. Natural gas prices remain under pressure while crude oil markets continue to react to geopolitical tensions in the Middle East. When realized prices compress, producers respond: deferring completions, high-grading acreage and re-underwriting economics in real time. The question isn’t whether producers are adapting, it’s how fast, and where the next pressure point emerges.
Infrastructure is the other half of the equation. In the NGL market, rising Waha gas prices, driven by new pipeline capacity, are eroding the cost advantage that’s long favored ethane rejection. In the Permian, the math is even more binding: How much longer can oil and associated gas production keep growing as crude takeaway capacity tightens? Infrastructure doesn’t just move barrels. It sets the ceiling on what producers can economically bring to market.
And none of this happens in isolation. Gas, crude and NGLs are structurally linked through associated production, processing economics and shared basin infrastructure. A shift in one commodity’s price or takeaway capacity ripples through the others, which means forecasting any single molecule in a vacuum gets you the wrong answer.
Join East Daley’s analysts as they connect these dots: breaking down the market forces shaping 2H26, what they mean for producers and midstream operators, and the key indicators to watch in the months ahead.
Click here to register for our July webinar on Wednesday, July 29, at 10:00 a.m. MT.
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