Texas based company to expand export facility to supply China with $72 billion in ethane gas

Fuel Fix:

Houston-based American Ethane announced plans Monday to expand an existing Neches River terminal to support an ethane-export facility with capacity to supply about $72 billion in gas to China, a first for a U.S. company.

The project also could create 1,000 construction jobs initially and as many as 200 permanent full-time jobs, the Greater Beaumont Chamber of Commerce projects.

American Ethane CEO John W. Houghtaling said the company was willing to commit to the project because China has signaled its willingness to grant permits to the company’s three business partners based in that country.

“Ethane has never been imported into China,” Houghtaling said during a groundbreaking Monday. He added, “We weren’t sure how many permits China was going to grant, but we recently got indication that all of our partners would be granted permits. That means we can build the terminal large, all at one time.”

Plans call for expanding Martin Midstream Partners’ Beaumont Neches Terminal, building a gas pipeline from Mont Belvieu and installing the equipment to load the ethane onto ships.

Martin Midstream Partners operates across the Gulf Coast in the storage and distribution of natural gas.

Houghtaling said American Ethane has signed contracts with Nanshan Group, Ganergy Group and Yangquan Coal Group as well as the shipping firm China Merchants Group, the country’s largest state-owned company. He said China Merchants expects to invest $4 billion in ships for the trade route.
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With Chinese state-owned companies signing the agreements it looks like the trade war is coming to a close.  Texas is the number one export state in the US and this will only enhance that status.  The construction industry would also appear to be a winner in this deal.