Lianyungang-bound ethane tanker diverts to Reliance Industries amid US-China trade tensions

Ethane carrier STL Qianjiang, which usually moves between the US and China, has been diverted for delivery to final purchaser Reliance Industries Ltd. (RIL; Mumbai) at Dahej port, India, said Chemweek.

The ship was loaded at Energy Transfer's Nederland terminal in the US for China as the delivery destination. Later, on June 11, the carrier signaled Dahej port as its destination, according to sources and ship tracking data from S&P Global Commodities at Sea (CAS).

Amid a clear diversion from the usual route, there were assumptions that the cargo could be moved to India, which was acknowledged by a source at RIL on condition of anonymity.

“Total three ships carrying ethane going to China were canceled. One of these carriers was then booked by us,” said the company source, without commenting on the price or discount availed for the diverted cargo.

The other two cargoes heading to Lianyungang, China, have so far not changed their destinations, according to CAS data.

The very-large ethane carrier Gas Jessamine, which arrived at Energy Transfer's Orbit terminal in Texas on May 22, departed on May 23 with a cargo of ethane bound for Satellite Chemical’s Lianyungang, according to CAS data, while the Seri Elbert arrived at Orbit on May 26 and departed for Lianyungang on May 28.

Notably, Reliance also maintains its own six ethane carriers that are used to source the feedstock from the US, sources said on June 12.

Platts had reported on June 5 that neither of the US' two ethane exporters, Energy Transfer and Enterprise Products Partners, would be allowed to load ethane for shipments to China without first securing a license from the Bureau of Industry and Security, part of the US Department of Commerce.

China has about 4 million metric tons per year of ethane-based ethylene capacity — almost all independently owned — that requires about 248,000 b/d of ethane feedstocks, according to Commodity Insights’ calculations. The capacity is spread across five plants in eastern China’s Jiangsu, Zhejiang and Shandong provinces.

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India’s largest manufacturer of industrial and medical gases, INOX Air Products Ltd. (Inoxap; Mumbai), said it has launched India’s first ultra-high-purity (UHP) ammonia T-50 ISO tank container, as per Chemweek.

Built to meet the international standards including ASME Sec VIII, Div-1 with U-designated construction, the ISO tank incorporates technology specifically designed for ultra-high-purity ammonia applications, said the company.

“By developing India's first UHP ammonia ISO tank container with world-class specifications, we are not just creating a product but enabling an entire ecosystem that will accelerate semiconductor and solar panel manufacturing capabilities across the world, and reduce our dependence on imports for critical industrial equipment,” said Deepak Acharya, CEO - INOX India.

“These certifications make the tank export-ready and capable for adding strength to the global UHP gas supply chain as well, besides ensuring versatile transportation via rail, road and ocean, offering customers maximum logistical flexibility,” he added.

Inoxap is a 50/50 joint venture between Air Products & Chemicals Inc. and the Jain family, according to the company’s website.

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The UAE will implement a comprehensive ban on the import, production, and trade of single-use plastic products from January 1, 2026, said Dr Amna bint Abdullah Al Dahak, Minister of Climate Change and Environment, as per Khaleejtimes.

This comes as part of the phased approach initiated in 2024 with the ban on plastic bags. “This builds upon the phased approach initiated in 2024 with the ban on plastic bags. This decisive action underscores our resolve and commitment to environmental stewardship, driving us towards a future where waste and pollution are designed out of our systems,” Dr Amna said on the occasion of World Environment Day — which is marked on June 5.

She called on all community members in the UAE to play their role in eliminating unnecessary plastic.

“Each of us, as responsible members of our community, can play a leading role in realising our nation’s vision by joining the mission to eliminate unnecessary plastic from our daily lives. Let us become active agents of change, leading a powerful movement towards thriving communities, and a vibrant, resilient environment. Let us protect the land and the sea that are so integral to our lives, for ourselves, our loved ones, and for generations to come,” the minister said.

She reiterated that this year's theme, 'Beat Plastic Pollution', is a call to action for every member of the community.

Dubai and other emirates imposed a ban on single-use plastic bags and implemented 25 fils tariff from January 1, 2024. The ban covered stirrers, Styrofoam food containers, table covers, cotton swabs, straws and single-use Styrofoam cups made of plastic. Starting January 1, 2026, single-use plastic cups and lids, single-use plastic cutlery, plastic food containers and plastic plates will be banned.

The United Nations Environment Programme (UNEP) on Thursday warned that plastic pollution is contaminating water supplies, food sources, and the air we breathe. “As plastics break down, they enter the food chain. Microplastics have been detected in human arteries, lungs, brains, and breast milk,” it said.

It said global plastic consumption is projected to reach 516 million tonnes this year, and if current consumption patterns continue, it will rise to over 1.2 billion tonnes annually by 2060.

“We are resolutely committed to managing hazardous waste and aggressively reducing plastic waste at every level,” said Dr Amna bint Abdullah Al Dahak.

She stressed that the UAE optimises resource use in critical sectors such as green infrastructure, transportation, manufacturing, and responsible food production and consumption. “The policy prioritises reducing plastic waste and promoting innovative solutions for sustainable packaging and recycling.”

The UN body said environmental factors contribute to the deaths of about 13 million people worldwide each year. Almost half of these fatalities are attributed to air pollution. The health and economic costs of unhealthy air pollution currently amount to $2.9 trillion.

“We urge communities to advocate for lasting solutions to combat plastic pollution. Historically, recycling has been a key strategy for mitigating plastic waste. However, only nine per cent of plastics produced globally are recycled. It is estimated that just 21 per cent of plastic today is economically recyclable, meaning the value of recycled materials covers the costs of collection, sorting, and processing,” it added.

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Zeon Corp.’s affiliate, Zeon Chemicals Singapore Pte. Ltd. (ZCS; Jurong Island, Singapore), has decided to increase the capacity of high-grade solution-polymerization styrene-butadiene rubber (S-SBR) in Singapore, as per Chemweek.

Production is slated to commence in 2026. Additional capacity brings total group output to 125,000 metric tons per year across facilities in Tokuyama, Japan and Singapore.

S-SBR is a synthetic rubber that contributes to fuel efficiency in automobiles through advanced control of molecular structure. “It also helps prevent air pollution due to its improved wear resistance that generates less dust,” said the company.

We remind, Zeon Corp. plans to close 60% of its elastomer production capacity in Tokuyama to improve the profitability of its synthetic rubber business and to devote resources to expanding its specialty materials business. Zeon announced a new project to build a cycloolefin polymer (COP) plant at a greenfield commercial facility it recently acquired in Shunan City, Yamaguchi Prefecture, Japan.

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Stolthaven Terminals (Rotterdam), a division of Stolt-Nielsen Ltd., through its joint venture, Tianjin Stolthaven Lingang Terminal Co. Ltd. (Tianjin, China) has signed a memorandum of understanding (MOU) with Itochu Corp. (Tokyo) to collaborate on storage and logistics solutions for green methanol, as per Chemweek.

This partnership will focus on supporting the growing demand for low-carbon fuels through the development of a methanol bunkering system and enhancing methanol export capabilities.

Stolthaven Lingang operates a terminal infrastructure in the Tianjin Lingang Industrial Zone. Through this MOU with Itochu, Stolthaven Lingang will seek to strengthen the supply chain infrastructure needed for alternative fuels.

According to Stolthaven, methanol is emerging as a viable marine fuel due to its lower carbon intensity and existing ease of handling, and the development of methanol bunkering services is expected to serve the increasing demand from the shipping sector.

“By leveraging our global network and expertise in the energy and chemicals sectors, we are well-positioned to significantly contribute to the transition toward cleaner fuels,” said Satoshi Tojo, general manager, Itochu.

Stolthaven said it is developing a number of projects to provide storage solutions for hydrogen, ammonia and green methanol, including its new JV terminal in Taiwan, and a potential project in partnership with the Pecem Industrial and Port Complex in Brazil to develop a terminal focused on storing and handling green hydrogen and associated products such as ammonia.

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