Once considered an overlooked by-product of oil and gas operations, ethane has quietly supported major industrial and economic systems. Today, it has emerged as a strategic feedstock with increasing significance in global energy, trade, and even geopolitics. Market attention is growing, particularly in light of recent US–China trade tensions, as ethane shifts from a background commodity to a key factor in energy strategy and global trade dynamics.

In this whitepaper we explore: 

• How ethane transformed from a secondary by-product to a strategic global feedstock and geopolitical lever

• The economics driving its cost advantage, evolving cracker flexibility, and potential supply constraints

• The influence of US–China trade tensions on flows and the expanding global footprint of supply, demand, and infrastructure