The U.S. has become a leading exporter of one popular cooking and heating gas: propane.
However, America’s position could be in jeopardy as the trade war with China rages on. China, Japan and Mexico are frequent docking destinations for VLGCs, or very large gas carriers, filled with propane.
The country’s shores and pipelines saw 57 million barrels of propane leave in January of this year, according to the Energy Information Administration. China accounts for 12 million, or just more than one-fifth of U.S. exports in January.
“China is very dependent on the United States for its propane, and because it wants to make certain sectors of its economy, particularly the chemical sector, more competitive,” said Centre for Economic Security CEO Rebecca Harding. “It’s going to need U.S. propane in order to be able to do that.”
Several U.S. companies are expanding capacity to support the country’s growing export demand. One of those is Enterprise Products Partners, and it suggests tariffs may not wipe away business.
“They’re all asking for more. So our docks are chockablock full, and I think they will stay that way,” said Enterprise Products Partners co-CEO Jim Teague.
Watch the video above to learn how propane is extracted, what Enterprise Products Partners’ operational facilities look like and what’s next for America’s position as a leading exporter of propane.