American Ethane Company
| Company type | Private |
|---|---|
| Industry | Petroleum |
| Founded | January 2014 |
| Headquarters | Houston , United States |
Area served | United States, China |
Key people | John W. Houghtaling II (CEO), James Glickenhaus (Board member), J. M. "Jim" Collingsworth (Board member) |
| Products | Ethane |
| Owner | Konstantin Nikolaev, Mikhail Yuriev, Andrey Kunatbaev (88%) |
| Website | www |
American Ethane Company, LLC (AEC) stands as the foremost ethane producer within the United States, with its main headquarters located in Houston, Texas, and additional offices situated in New Orleans. Established in January 2014, this privately owned petroleum enterprise features prominent financial backing from Russian oligarchs associated with Vladimir Putin's close network.
Ownership and management
By July 2018, ownership of American Ethane was predominantly held by Konstantin Nikolaev, Mikhail Yuriev, and Andrey Kunatbaev, who together controlled 88% of the company. A discreet 2.5% share, valued at $1.25 million in 2014, was owned by Alexander Voloshin through an AV SPV, forming part of the remaining 12%. CEO and co-founder John W. Houghtaling II disclosed in July 2018 that Alexander Abramov, known as a business partner of Roman Abramovich at Evraz, is also among the investors. Roman Abramovich himself invested from the company's inception in January 2014 until his withdrawal in April 2017.
The company’s leadership is headed by Houghtaling as CEO, while its Board of Directors includes notable figures such as James Glickenhaus and J. M. “Jim” Collingsworth.
History
American Ethane received an initial $50 million investment in January 2014 from Millhouse LLC, an asset management firm based in Moscow and linked to Roman Abramovich. However, Abramovich exited his investment by late 2015 due to sanctions imposed following the Russian intervention in Ukraine and the Annexation of Crimea by the Russian Federation. The financial support from Nikolaev played a pivotal role in averting bankruptcy for American Ethane. In April 2017, Abramovich recovered $21 million via Eucla Investments Ltd from debts owed by Houghtaling to American Ethane.
Since 2015, American Ethane has grown its presence in the China market, supplying more than 7.2 million tons annually for power generation at facilities operated by General Electric. On November 9, 2017, during the U.S.-China Business Exchange attended by U.S. President Donald Trump and Chinese President Xi Jinping, China’s Nanshan Group entered into a $26 billion agreement spanning 20 years to procure liquid ethane from American Ethane. This contract, finalized earlier in June 2017, underpins China’s ethylene production utilized in plastic manufacturing. The United States continues to dominate as the world’s leading ethane supplier, with Houghtaling noting that competition mainly arises from Russia.
In 2018, American Ethane initiated construction of the largest ethane export terminal on the U.S. Gulf Coast. This project is a joint venture with The Energy & Minerals Group (EMG), which was established by John T. Raymond in Houston in 2006. The terminal is designed to handle up to 10 million tons annually and aims for completion by 2020. Once operational, exports destined for China are anticipated to surpass 7.2 million tons per year—twice the volume of total U.S. ethane exports recorded in 2017.
By July 2018, American Ethane had secured contracts valued at $72 billion over two decades to export ethane from the Gulf Coast region of the United States to China.
Lobbyists and campaign contributions
Between April 2014 and January 2015, lobbying efforts on behalf of American Ethane were managed by Haley Barbour's firm, BGR Group, which received $220,000 for their services through lobbyists Ed Rogers, Walker Roberts, Lauren Monroe, and Erskine Wells. In October 2017, representation shifted to Lindsay Sander of Austin’s Sander Resources and Kyle Ruckert from Bold Strategies based in Louisiana.
From January 2017 through July 2018, American Ethane made substantial political donations supporting Conservative Louisiana initiatives as well as politicians including Bill Cassidy, Mike Johnson, John Kennedy, Garret Graves, along with contributions to the Scalise Leadership Fund and Pelican PAC.
Controversies
Foreign ownership constitutes at least 20% of American Ethane, which obligates lobbyists such as BGR Group to register under the FARA by declaring their representation of overseas interests. Despite this requirement, BGR Group has not fulfilled this obligation. Violations of FARA carry serious consequences, including potential imprisonment for up to five years and fines reaching $250,000.
While American Ethane is officially incorporated in Texas, its lobbyists have directed considerable political donations toward Louisiana officials, even though the company’s primary development initiatives are located within Texas.
Significantly, key foreign investors like Voloshin, Abramovich, and Abramov—who hold substantial shares—are not disclosed in American Ethane’s public documentation.
Furthermore, Konstantin Nikolaev, a partner affiliated with American Ethane, maintains close connections to Vladimir Putin’s circle through associates such as Igor Levitin, Alexey Mordashov, Arkady Rotenberg, and Gennady Timchenko.