Abstract: A retarding heat tracing system amd method of making same adapted to externally heat a process pipe including a channel member, a heat transfer element, a retarding heat transfer strip made from a retarding heat transfer material, and a plurality of clamping members. The retarding heat transfer strip has a longitudinal cavity which receives the heat transfer element. The external shape of the retarding heat transfer strip substantially conforms to a longitudinal recess of the channel member. The retarding heat transfer strip with heat transfer element is positioned in the recess of the channel member and the clamping members attach the channel member to the process pipe. The retarding heat transfer material optimizes the heat transfer between the heat transfer element and the process pipe while minimizing the heat transfer element heat loss.