Iran War Deepens China’s Dependence on the US for Niche Gas

China is set to import a record volume of US ethane this month as petrochemical producers seek alternative feedstocks for their operations after the war in the Middle East choked off crucial supplies.

Shipments of US ethane are expected to rise to an all-time high of 800,000 tons in April, according to Chinese consultant JLC, which would be around 60% higher than the monthly average. Some companies can switch to using ethane, helping them offset disruptions to the supply of naphtha and liquefied petroleum gas from the Middle East after the effective closure of the Strait of Hormuz.