Local Attorney and CEO of American Ethane Signs $26 Billion Gas Deal with China As Trump Watches



NEW ORLEANS, LA. – American Ethane Company (AEC), an international exporter of liquid ethane, will enter into a $26 billion contract with the Nanshan Group, one of China’s largest enterprise companies, at a signing ceremony in Beijing on Thursday to be witnessed by U.S. President Donald Trump and Chinese President Xi Jinping.

In June 2017, AEC negotiated the 20-year, $26 billion binding agreement to deliver ethane gas from a terminal on the Texas Gulf Coast to a new ethylene plant in China to be built by the Nanshan Group. The deal is one of the largest at the November 2017 trade summit. 

Said American Ethane Chief Executive Officer John Houghtaling, “American Ethane is greatly honored to receive the summit invitation from President Donald Trump and President Xi Jinping.  The economic value of the gas sale will exceed $26 billion with several billion dollars more of infrastructure being built in the U.S. and China. This deal will create thousands of jobs in both countries. As one of the larger deals of this Summit, the agreement meets the U.S. goal of reducing the trade deficit, China’s goal of creating for the first-time ethane-to-ethylene production in China - which is an efficient and green industry - and the mutual goal of providing a long-term economic link between our two countries.”

American Ethane is developing the largest ethane export terminal on the Gulf Coast with annual output of 10 million metric tons per year of liquefied ethane gas (LEG). AEC commissioned and completed a full FEED study in May 2015. Construction of the terminal will be coordinated with downstream infrastructure in China and is expected to start in early 2018 with completion by 2020.

Under terms of the agreement, Nanshan has signed a binding take-or-pay contract to purchase ethane for 20 years. Added Houghtaling, “This is a win-win for the U.S. and China. The Chinese market has realized the benefit of linking a gas purchase to gas prices within the U.S. as opposed to purchasing gas in other parts of the world tied to volatile future oil prices.” 

Houghtaling is managing partner and majority owner of Metairie-based Gauthier, Houghtaling LLP, a law firm with a 42-year legacy that paved the way to the $358 billion U.S. tobacco settlement in 1998, and won an additional $4 billion in settlements and verdicts. A 2015 episode of the CNN-documentary Inside Man, details the story of Houghtaling's transition from attorney to oil and gas investor. Click here to view.

Louisiana Senators John Kennedy and Bill Cassidy submitted the agreement between the two companies to be highlighted at the U.S./China trade summit, which is part of President Trump’s five nation, 12-day tour of Asia. 

Add your comment:
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags Edit ModuleShow Tags

Calendar

  • Strictly Biz Night

    2018.06.21

    Looking to promote your business and network with local professionals? Register today for Biz New Orleans' Strictly Biz Night. Join us this month...

  • Biz Night at the Jung Hotel

    2018.06.21

    Looking to promote your business and network with local professionals? Then register today for Strictly Biz Night presented by Biz New Orleans...

  • Biz Night at The Jung

    2018.06.21

    Join Biz New Orleans at the beautiful newly re-opened Jung Hotel & Residences to swap business cards and network with local professionals. Enjoy...

  • FestiGals Women's Weekend Experience

    2018.06.21

    The 2018 FestiGals Weekend will bring women of all ages and backgrounds together for an enjoyable experience that will feature authentic New...

  • FestiGals Tricentennial Women's Day

    2018.06.22

    The Tricentennial Women's Day at Jung Hotel and Residences of the New Orleans Hotel Collection is an empowering day full of incredible women...

  • FestiGals Step Up Second-Line Parade

    2018.06.22

    Being a woman is something to celebrate! So join us in the city’s largest women’s second-line parade to STEP UP to stop domestic violence....

  • Louisiana SPCA Volunteer Orientation

    2018.06.23

    The first step to becoming a volunteer with us is to attend the Louisiana SPCA Volunteer Orientation! Our work would not be possible without the...

  • Deutsches Haus Social

    2018.06.29

    The Deutsches Haus Social on Friday, June 29, 2018 will present the New Orleans Symphony Chorus’ Beer Choir. This will be a sing-a-long with...

  • RedRover Responders Volunteer Training.

    2018.06.30

    RedRover Responders Volunteer Training: RedRover provides an emergency safety net for animals when and where they need it most. The RedRover...

  • Rock, Ride and Rescue

    2018.07.08

    Rock, Ride and Rescue is a fundraiser to support animals with special needs at the Louisiana SPCA! Join us at Rock N Bowl on July 8 from 6 - 9 p.m....

  • RUNNING OF THE BULLS KICK OFF DINNER

    2018.07.12

    Olé! Kick off Festival de San Fermin (Running of the Bulls) with this special Spanish-themed wine dinner. Enjoy a fabulous four-course dinner with...

  • Raising the Steaks

    2018.07.18

    Class up your Wednesday at the Foundation Room VIP Club at House of Blues New Orleans. The iconic venue is partnering with award-winning classical...

  • Hispanic Business Conference & Tradeshow

    2018.08.08

    The Hispanic Business Conference and Trade Show is the premiere venue for Hispanic Businesses to market their goods and services and it is the...

  • Hispanic Business Conference & Tradeshow

    2018.08.08

    The Hispanic Business Conference and Trade Show is the premiere venue for Hispanic Businesses to market their goods and services and it is the...

  • Hispanic Business Conference & Tradeshow

    2018.08.08

    The Hispanic Business Conference and Trade Show is the premiere venue for Hispanic Businesses to market their goods and services and it is the...


Show More...