{"text":[[{"start":8.9,"text":"China’s desperation for raw materials to make plastics has driven US ethane exports to record levels, even as the two countries are locked in disputes over everything from Iran to semiconductors."}],[{"start":21.65,"text":"The Iran war has disrupted oil supplies around the world, leading to a shortage of the petrochemical feedstock naphtha, made from crude and produced in the Middle East. The shortage has pushed refineries in China, the largest plastics manufacturer in the world, to import more ethane, a cheaper alternative and an abundant byproduct of US natural gas production, to help make everything from water bottles to car parts. "}],[{"start":47.3,"text":"The pivot comes as US President Donald Trump visits China with top executives for a two-day summit on Thursday and Friday. The White House restricted ethane exports to the Asian nation during heightened trade tensions last year, but later rescinded them. "}],[{"start":60.75,"text":"The plastic crisis had incentivised co-operation between the world adversaries, said Erica Downs, senior research scholar at Columbia University."}],[{"start":70.05,"text":"“The relationship is fragile — at the same time we have seen the trade truce hold,” Downs said. “I think both sides would continue to have that hold for as long as possible, it just buys them more time to increase self-sufficiency or shore up other suppliers.”"}],[{"start":83.75,"text":"She added: “As we learned since Trump took office in the second term, they’ve both been able to identify each other’s Achilles heel.” "}],[{"start":90.6,"text":"US ethane exports rose to a record 776,000 barrels per day in March, 47 per cent higher than a year ago, with nearly three-quarters going to China, according to East Daley Analytics. "}],[{"start":105,"text":"Facilities in China “that would have traditionally used naphtha, they are going to switch to ethane just because it’s more economical”, said Josh Eiermann, an analyst at the US Energy Information Administration. "}],[{"start":118.35,"text":"“You’re not relying on the Gulf or Russia, you’re getting it from the US and that’s more reliable,” Eiermann said. "}],[{"start":125.64999999999999,"text":"Exports were expected to remain elevated through April and May at 600,000 b/d and 633,000 b/d respectively, with declines occurring because of tighter ship availability and delays going through the Panama Canal, said Julian Renton, an analyst at East Daley Analytics."}],[{"start":145.35,"text":"“The US ethane business is reliant on Chinese demand, these are really interlinked,” Renton said."}],[{"start":152.75,"text":"Texas midstream companies Energy Transfer, a $69bn company chaired by pipeline mogul and Trump donor Kelcy Warren, and Houston-based Enterprise Products Partners supply the majority of the US ethane exports. Both companies declined to comment. "}],[{"start":169.05,"text":"Energy Transfer said during its earnings presentation last week that it extended the majority of its existing ethane contracts by 10 years to 2041 as it expands production at its Nederland Terminal in Texas, one of the largest natural gas liquids exporting facilities in the world."}],[{"start":186.8,"text":"Chief operating officer Marshall McCrea said the company was “very optimistic on another announcement of a major ethane expansion”."}],[{"start":195.4,"text":"He added: “The way to avoid bottlenecks is to stay ahead of it and that’s what we’re trying to do, is stay ahead of the production as it comes on.”"}],[{"start":204.15,"text":"While ethane sales have been growing, the two superpowers have wielded energy supply as a strategic cudgel in other ways."}],[{"start":212,"text":"Last year, China stopped buying liquefied natural gas from the US and expanded purchases from Russia, while Washington put tariffs on Chinese solar panel equipment and sanctioned the Hengli Petrochemical (Dalian) Refinery in April over purchases of Iranian oil."}],[{"start":227.2,"text":"Ethane margins and prices were “quite strong” as a result of the disruption caused by the Iran conflict, said Susan Bell, senior vice-president of downstream at Rystad."}],[{"start":238.79999999999998,"text":"The war had highlighted the US petrochemical advantage, said Bell, noting that in North America many processing facilities use ethane."}],[{"start":246.99999999999997,"text":"“The US has had an edge on that market for many years,” she said. "}],[{"start":258.79999999999995,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778772040_8017.mp3"}