By Arathy Somasekhar and Georgina McCartney

HOUSTON, May 8 (Reuters) - U.S. exports of natural gas

liquids touched a record high in April, even as a trade war

between the U.S. and China cut shipments to the top buyer, ship

tracking data showed.

The recent trade developments have threatened U.S. exports

of natural gas liquids (NGLs), such as ethane, butane and

propane, used to make plastics and chemicals as well as for

heating and cooking. U.S. exports have hit a new high every year

since 2010 thanks to an abundance of cheap shale natural gas.

NGLs, primarily extracted from raw natural gas during

processing, are the latest energy products ensnared in the

escalating trade war between the world's two largest economies.

Nearly half of U.S. ethane exports go to China, and all of

China's ethane imports come from the U.S. with practically no

options for alternative sources, according to the statistical

arm of the U.S. government. Chinese petrochemical firms use it

as feedstock because it is a cheaper than alternative naphtha,

while U.S. oil and gas producers need China to buy their natural

gas liquids as domestic supply exceeds demand.

The U.S. exported about 2.9 million barrels per day (bpd) of

NGLs in April, a record high, data from ship tracking firms

Kpler and Vortexa showed.

But exports to China fell 35% to 619,000 bpd in the month,

Kpler data showed, the lowest since November 2023. China waived

the 125% tariff on ethane imports from the U.S. imposed earlier

this month, two sources told Reuters this week.

Other countries increased their purchases of U.S. NGLs in

the global rerouting, making up for the U.S.'s loss of Chinese

buying.

India more than tripled its purchase to a record high of

179,000 barrels per day, Kpler data showed.

Brazil more than doubled its purchases to 113,000 bpd, the

highest in five years, while Japan, the second largest buyer of

U.S. natural gas liquids, stepped up shipments by 64% to nearly

400,000 bpd, the highest since February 2023.

U.S. production of ethane will rise 3.6% to 2.9 million bpd

this year, the Energy Information Administration forecast,

adding that most of this growth in production will be exported

to supply growing international demand.

"The market has already gone to work rerouting barrels

between the world's biggest liquefied petroleum gas (a mix of

propane and butane) suppliers, the U.S. and the Middle East, and

the biggest importing countries being China and India," said Jim

Teague, co-chief executive officer Enterprise Products Partners ( EPD )

, one of the top exporters of U.S. natural gas liquids,

in a quarterly earnings call.

The company said it was not seeing a disruption of any of

its exports of ethane, propane or butane.

Rival Energy Transfer ( ET ), also among the largest

exporters of U.S. NGL, said it was not having a problem finding

a home for its ethane or LPG.

Enterprise Products ( EPD ) said total NGL pipeline transportation

volumes rose 5%, while marine terminal volumes climbed 11%.

Energy Transfer's ( ET ) NGL transportation volumes were up 4% in the

first quarter, while exports were up 5%.