Recent U.S. restrictions on ethane exports to China may hinder contracts with Chinese companies, despite being lifted. The restrictions, imposed in May and June, disrupted ethane flows and caused delays. Energy Transfer, a top U.S. ethane exporter, anticipates challenges in contracting with Chinese petrochemical firms due to the restrictions.

About half of U.S. ethane goes to China for production of ethylene, used in plastics. Chinese petrochemical firms prefer ethane as a cheaper feedstock. U.S. producers rely on Chinese demand for natural gas liquids. Enterprise Products Partners warned that export curbs affect U.S. supply reliability and energy security.

Enterprise Products CEO Jim Teague believes restrictions backfire, hurting U.S. industry. At least one non-Chinese company opted for naphtha over ethane contracts due to the restrictions. Energy Transfer reported an 11.5% decline in net income to $1.16 billion in the second quarter, with revenue falling short of estimates at $19.24 billion.

Read more at Yahoo Finance: US ethane curbs will make contracting to China harder, Energy Transfer says