American Ethane

What American Ethane does

American Ethane Company, LLC is a privately held US energy infrastructure company founded in 2014 by CEO John Houghtaling II and headquartered in Houston, Texas. The company is developing the largest planned ethane export terminal on the US Gulf Coast at Martin Midstream Partners' Beaumont, Texas facility on the Neches River, designed for an annual throughput capacity of up to 10 million metric tonnes of liquefied ethane gas (LEG). American Ethane monetizes ethane produced from US shale gas by supplying it under long-term (20-year) take-or-pay contracts to Chinese petrochemical groups building ethane-to-ethylene steam crackers; binding contracts with Nanshan Group, Ganergy Heavy Industry Group, and Yangquan Coal Group cover 7.2 million tons/year with aggregate nominal contract value exceeding $72 billion over the contract terms.

The company's core products and technology stack comprise: (i) the LEG export terminal and liquefaction infrastructure, (ii) a planned fleet of 17 Very Large Ethane Carriers (VLECs) of 150,000 cbm capacity each, built at Chinese shipyards Hudong-Zhonghua and Jiangnan with GTT Mark III membrane containment and MAN 6G70ME-GIE dual-fuel engines, classified by ABS, and (iii) downstream equity participation (e.g., 30% stake in Nanshan's Shandong cracker) in customer ethylene projects. Ethane is delivered CIF (Cost, Insurance, Freight) to Chinese discharge terminals via the proprietary VLEC fleet.

Revenue mechanics rely on a transaction-fee style pricing formula (US ethane market price + liquefaction costs + shipping costs) applied across long-duration take-or-pay contracts, supplemented by managed terminal-services revenue for third-party volumes. Capital is provided by Energy & Minerals Group (EMG) under an exclusive supply and co-development agreement committing at least $1 billion, alongside earlier $350 million in founding private equity. GTM motion is enterprise field sales into Chinese state and private petrochemical groups, mediated by US-China diplomatic engagement and high-profile bilateral summits. Ownership includes significant Russian-linked capital (Konstantin Nikolaev, Andrey Kunatbaev as Chairman), with Jim Glickenhaus serving as trustee and board member.

Name

American Ethane

Legal name

American Ethane Company, LLC

Website

https://americanethane.com

Company type

Private

Founded year

2014

Operating status

Operating

Headcount range

251–500 employees

Short description

American Ethane is a privately held US energy company developing a 10 million ton/year liquefied ethane export terminal on the Gulf Coast and supplying Chinese petrochemical groups under 20-year take-or-pay contracts, with $72 billion in nominal contracted volume.

Ownership category

akta.pro rank

Product category

Liquefied Ethane Gas Export

NAICS

Petrochemical Manufacturing (32511), Petroleum Refineries (32411), Petroleum and Coal Products Manufacturing (3241)

SIC

Petroleum Refining (2911), Miscellaneous Products Of Petroleum & Coal (2990)

akta.pro primary industry

NGL & Light Ends Feedstocks (Ethane, Propane, Butane, Natural Gasoline) (EUALAHAA)

akta.pro secondary industries

LNG Liquefaction (Export Terminals) (EUAAACAE), Gas Processing & NGL Recovery (Dehydration, Sweetening, Cryogenic Recovery) (EUALAGAG), NGL/LPG Export / Marine Terminal Connection Pipelines (TLAGAEAK), Liquefied Gas Transport (LNG/LPG/Ammonia) (TLADALAC)

Keywords

• Ethane export services
• Liquefied petroleum gas
• Petrochemical feedstock supply
• US shale gas
• Ethane-to-ethylene

Headquarters

HQ city

Houston

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Supply Chain, Operations, Personnel, Marketing or Sales

Revenue model

1. Ethane Sales (Long-term Contracts): Revenue generated from 20-year take-or-pay contracts to supply liquefied ethane gas to Chinese petrochemical companies. Pricing based on 'US ethane market price + liquefaction costs + shipping costs' model (CIF basis). Contract values total $72 billion across three binding agreements with Chinese companies.
2. Terminal Services: Operation of ethane export terminal facilities including loading, storage, and processing services for third-party ethane volumes

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

American Ethane exports liquefied ethane gas (LEG) on a CIF basis worldwide via long-term take-or-pay contracts, delivering ethane to customer discharge terminals and steam crackers. The company is developing a state-of-the-art 10 million ton per year ethane export terminal on the US Gulf Coast (Beaumont, Texas) and operates a planned fleet of 17 Very Large Ethane Carriers (VLECs) for maritime transportation. Primary customers are large Chinese petrochemical companies building ethane-to-ethylene cracker facilities.

Product overview

American Ethane is a U.S.-based energy company offering ethane export services centered on Liquefied Ethane Gas (LEG) exports via long-term take-or-pay contracts. The company operates a state-of-the-art ethane export terminal on the US Gulf Coast (Beaumont, Texas) and utilizes a fleet of Very Large Ethane Carriers (VLECs) for maritime transport. American Ethane also participates as an investor in customer ethane-to-ethylene projects in China, providing both ethane supply and technical collaboration. The product portfolio consists of core export services, terminal infrastructure, specialized shipping vessels, long-term supply contracts (valued at $72 billion+ over 20 years with Chinese partners), and investment participation in downstream ethylene production projects.

Differentiator

Problem solved

Functional benefit

Products and services

• Liquefied Ethane Gas (LEG) Export Services Long-term export supply service delivering liquefied ethane gas (LEG) on a CIF basis via Very Large Ethane Carriers to customer-owned receiving terminals and ethane crackers. Targeted at large petrochemical enterprises, primarily in China, building ethane-to-ethylene production facilities.
• Ethane-to-Ethylene Project Investment Participation Equity investment participation in downstream Chinese ethane-to-ethylene cracker projects, combining ethane feedstock supply with technical collaboration and shared investment. Targeted at Chinese petrochemical partners building ethylene production facilities.
• 20-Year Take-or-Pay Ethane Supply Contracts Long-term binding take-or-pay agreements to supply ethane to Chinese petrochemical companies on a CIF basis. Contracts guarantee offtake volumes and pricing formula based on US ethane market price plus liquefaction and shipping costs. Targeted at large Chinese industrial groups building ethane-to-ethylene crackers.

Quantifiable outcome

• Reduces US-China trade deficit by over $72 billion through ethane export contracts
• +1 more outcomes

Named customers3 records

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Eight partnerships are on record, tiered major and core.

• ABS (American Bureau of Shipping)majorTechnology or Integration · 18 September 2019ABS is collaborating with AEC on next-generation Ultra Large Ethane Carrier (ULEC) fleet classification. ABS provides technical and regulatory support for the VLECs that will supply ethane from US Gulf Coast to petrochemical facilities in China.
• S&B Engineers and ConstructorsmajorImplementation/ SI/ Consulting Partner · 14 January 2019S&B will build the ethane export terminals at Martin Midstream Partners' Beaumont, Texas facility. S&B CEO James Brookshire stated commitment to recruit locally for construction and production jobs.
• Martin Midstream PartnerscoreStrategic or Co-development Partner · 14 January 2019American Ethane's ethane export terminal is being developed at Martin Midstream Partners' Beaumont, Texas facility along the Neches River. Terminal groundbreaking ceremony held January 2019.
• China Merchants GroupcoreStrategic or Co-development Partner · 27 July 2018Through subsidiary Nanjing Tanker Corp, China Merchants Group will invest billions to build, own, and operate a fleet of Very Large Ethane Carriers to transport up to 7.2 million tons/year of ethane. CMG is China's largest state-owned entity with assets exceeding $1.2 trillion.
• China LNG Shipping (CLNG)coreStrategic or Co-development Partner · 25 April 2018CLNG and American Ethane signed MOU to collaborate on ethane shipping from US to China. Joint ordering and management of VLEC newbuildings at Hudong-Zhonghua Shipbuilding. CLNG was jointly established by China Merchants Group and China Cosco Shipping.
• KBRmajorTechnology or Integration · 18 April 2018KBR provides ethane-to-ethylene technology for the 2.6 million tons ethane to 2.0 million tons ethylene project in Jinzhou, China. KBR has internationally leading ethane-to-ethylene technology with over 60 years of ethylene plant design experience.
• Hudong-Zhonghua ShipbuildingmajorTechnology or IntegrationChinese shipyard that will build VLECs for American Ethane. Received approval in principle for VLEC designs. One of two shipyards (along with Jiangnan) selected for the 17 VLEC order.
• Jiangnan ShipyardmajorTechnology or IntegrationChinese shipyard selected to build VLECs for American Ethane's fleet. Received approval in principle for VLEC designs.

Scale indicators7 records

Recent moves9 records

Expansion highlights6 records

Regional players

• Antero Resources: Major US ethane producer in the Appalachian Basin. While focused on upstream production rather than export, Antero is a key US ethane supplier relevant to American Ethane's feedstock sourcing and pricing dynamics.
• Range Resources: US natural gas and NGL producer with significant ethane output. A potential feedstock source comparable to EMG's role in supplying American Ethane's terminal operations.

Direct peers

• Enterprise Products Partners: The largest US NGL exporter and ethane terminal operator at Mont Belvieu, Texas. Directly competes with American Ethane in US ethane export infrastructure and serves similar downstream petrochemical customers including Chinese ethylene producers.
• Targa Resources: US NGL processing and export operator with the Galena Park facility. Competes with American Ethane in ethane export infrastructure and serves overlapping downstream ethylene/petrochemical customers.
• Energy Transfer: Major US midstream operator with ethane export capabilities at Lake Charles, Louisiana. Competes directly with American Ethane in NGL export terminal capacity and transpacific ethane shipping to petrochemical customers.
• Navigator Holdings: Operator of one of the world's largest fleets of ethylene gas carriers serving petrochemical customers globally. Directly comparable to American Ethane's planned VLEC fleet for maritime ethane transportation.

Broad incumbents

• Phillips 66: Integrated petroleum refining and petrochemical company with Sweeny complex producing significant ethane volumes. A broader incumbent in the ethane value chain that competes as both feedstock supplier and petrochemical end-user.
• INEOS: Global petrochemical producer operating ethane crackers in the US and Europe (e.g., INEOS Cracker in Texas). Competes with American Ethane in the ethylene value chain and represents the type of large-scale cracker customer that drives ethane demand.
• Dow Inc. Major petrochemical producer operating large-scale ethane crackers in the US Gulf Coast and globally. A potential customer and competitor in the ethane feedstock market that competes with American Ethane's customer base for cracker supply.
• LyondellBasell: One of the world's largest polyethylene and ethylene producers with ethane crackers in the US and Europe. A broader incumbent that competes for ethane feedstock supply and downstream ethylene/PE markets targeted by American Ethane's customers.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about American Ethane