Mukesh Ambani Reroutes US Ethane Amid Trump’s Trade War

Picture Credit: livemint.com

US President Donald Trump’s trade war has made many enemies — but it has also created unexpected allies. One of them is Asia’s richest tycoon, Mukesh Ambani, who is preparing to receive US cargo originally meant for China but now rerouted to India. The cargo in question is a shipment of ethane, a key feedstock for petrochemicals.

Ambani, 68, is no stranger to bold bets. Over a decade ago, he wagered on importing North American ethane to fuel his petrochemical ambitions. It was a move that aligned with his legacy: his father, Dhirubhai Ambani, the founder of Reliance Industries, was famously dubbed the “Polyester Prince.” While Mukesh has expanded the empire into digital services and retail—adding $57 billion in value—his core oils-to-chemicals business remains dominant, generating $74 billion in annual revenue.

Traditionally, Indian refiners like Reliance relied on naphtha—derived from crude oil—to produce ethylene, a key raw material for plastics. But the efficiency of converting naphtha is only 30%, compared to 80% with ethane. Still, since crude was already imported for fuel, using it for polymers made economic sense—until now.

Picture Credit: esgtimes.in

Ethane, long overlooked due to cost and supply challenges, is emerging as a game changer. It is half as expensive as naphtha on an energy-equivalent basis. Even Qatar, once indifferent to extracting ethane from its gas exports, is shifting stance. Under a new deal with India’s ONGC, QatarEnergy will now deliver only “lean” gas. If India wants ethane, it must pay separately for it.

Trump’s trade war has disrupted old routes, but for Ambani and India’s petrochemical sector, it may prove to be an unlikely opportunity in disguise.