Octane blending
Overview
Demand for high octane components vary throughout the year depending on seasonality, premium gasoline market share, and refinery performance. Stricter gasoline standards also contribute to demand for high octane components.
Among the list of high-octane components are reformate, alkylate, MTBE, ETBE, toluene, xylenes, ethyl benzene, and others. Some of these components primarily see demand from the chemical market but could be diverted to the gasoline pool if there are returns in that segment.
Each blendstock has specific octane rating and rvp content that determines its value in the gasoline pool. Gasoline blenders will look at market prices for each of the octanes and see how it relates to the value in the gasoline pool. In the summer of 2023, high volumes of ethylbenzene were diverted to the gasoline instead of the production of styrene, as styrene prices fell below ethylbenzene blend value.
MTBE is a high-octane component for gasoline blending, but only used in some countries. MTBE demand has been led by growth in Asia, Middle East, and Latin Markets. Other regions have focused on increased biofuel usage which includes ethanol and ETBE.
Argus’ experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global markets.
Latest octane blending news
Browse the latest market moving news on the global octane blending industry.
Equate halts EG-2 unit in Kuwait
Equate halts EG-2 unit in Kuwait
Amsterdam, 9 March (Argus) — Kuwait-headquartered petrochemical producer Equate has temporarily shut down its EG-2 ethylene glycol unit in Shuaiba during the ongoing war between the US/Israel and Iran. The firm suspended output "to safeguard people and operations", the firm said today. Equate operates two ethylene glycol units with capacities of 600,000 t/yr and 550,000 t/yr in Shuaiba, Kuwait, according to Argus data. The firm's notice related only to the EG-2 plant, implying that other units are running, although operations are likely to be affected. Equate operates two steam crackers at the Shuaiba site with a combined 1.85m t/yr ethylene capacity, which supplies the EO/EG units and 890,000 t/yr LLDPE/HDPE capacity. The firm also runs a 1.025mn t/yr ethylene glycol facility in Texas in the US, as well as two sites with a combined capacity of 1.35mn t/yr of ethylene glycol in Canada's Alberta through its subsidiary MEGlobal. Exports of ethylene glycol from the Mideast Gulf were effectively halted by the war, with tanker traffic through the strait of Hormuz — the main route for Mideast Gulf crude, LNG and petrochemicals exports — almost at a standstill since the US and Israel began launching air strikes on Iran on 28 February. Tehran has responded by attacking other countries in the region, including targeting oil and gas infrastructure and shipping. Kuwait supplies most of its monoethylene glycol (MEG) to Asia, mainly to India, China and Pakistan. The country exported over 1.2mn t of MEG in 2025, Global Trade Tracker data show. India received 548,000t or 45pc of total exports, while China and Pakistan took 402,000t and 165,000t, representing 33pc and 14pc of exports, respectively. By Liana Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan's Mitsubishi Chemical slows ethylene production
Japan's Mitsubishi Chemical slows ethylene production
Tokyo, 9 March (Argus) — Japanese petrochemical company Mitsubishi Chemical reduced the operating rate of its 485,000 t/yr naphtha-fed cracker at its Ibaraki plant in eastern Japan late last week, Mitsubishi Chemical told Argus on 9 March. The move is a part of its efforts to avoid halting operations altogether, following concerns over naphtha supplies because of the US-Iran conflict. Domestic and imported naphtha procurements are becoming uncertain, Mitsubishi Chemical said. Normal operations continue at the company's 496,000 t/yr cracker, jointly owned by chemical firm Asahi Kasei and Mitsubishi, at the Mizushima plant. The difference between its two crackers reflected stockpiled naphtha levels at each plant, Mitsubishi Chemical added. Separately, fellow Japanese petrochemical firm Idemitsu notified its customers last week that the company could halt its ethylene output in the middle- to long-term if the supply shortage of feedstock naphtha lasts long, it said. But Idemitsu currently has no concrete plans to stop its ethylene production, the company added. Idemitsu has a 623,000 t/yr naphtha cracker at its Tokuyama plant in western Japan and a 374,000 t/yr cracker at its Chiba plant in eastern Japan. Further concerns Other Japanese petrochemical producers also share concerns over naphtha supplies. Japanese chemical company Resonac's subsidiary Crasus Chemical has halted its 618,000 t/yr naphtha-fed cracker for maintenance since February. The cracker is expected to come back on line in late April or later. "If the current situation lasts until then, our cracker could also be affected," Crasus Chemical said. Fellow petrochemical firm Tosoh has halted its 493,000 t/yr cracker on 4 March for regular maintenance, which was planned before the US-Iran conflict started. The cracker is expected to come back on line around 19 April, but its restart could be delayed if the current situation disrupts naphtha procurement, Tosoh said. Petrochemical firm Maruzen Petrochemical has confirmed that it can continue operating its 480,000 t/yr cracker at its Chiba plant with its inventories at least during March, the company said. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Singapore’s TPC declares FM on upstream supply woes
Singapore’s TPC declares FM on upstream supply woes
Singapore, 9 March (Argus) — Singapore's polyolefins producer TPC has declared force majeure (FM) on 9 March after shutting multiple plants on Jurong Island following the absence of olefins supplies from its upstream supplier PCS due to the US-Iran conflict. TPC takes olefins supplies from nearby cracker operator PCS, which declared FM on 5 March because of feedstock supply disruptions arising from the ongoing US-Iran war. PCS' crackers are likely operating at reduced rates, limiting olefins supply to TPC and prompting production to be affected. As a result, "production lines are forced to stop for an extended period," the producer said in a company statement seen by Argus . TPC operates two polypropylene (PP) units with a combined capacity of 400,000 t/yr, as well as a 250,000 t/yr low-density polyethylene/ethylene-vinyl acetate swing unit. Its largest 250,000 t/yr PP unit was shut in May 2025 for an undisclosed period due to commercial reasons . TPC is a joint venture between Nihon Singapore Polyolefin (NSPC), which holds a 70pc stake, and Qatar Petroleum International together with Singapore's Shell Petrochemicals, which collectively hold the remaining 30pc. Japan's Sumitomo Chemical is the majority shareholder of NSPC. "At this stage, the duration of the Force Majeure event remains uncertain," the company said. Petrochemical producers in southeast Asia are heavily impacted by the raw material supply disruptions from the Middle East. Singapore's Aster and PCS, along with Indonesia's Chandra Asri , all issued FM notices last week. By Zong Ming Shin and Toong Shien Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
SCG issues force majeure at Thai Rayong petchem complex
SCG issues force majeure at Thai Rayong petchem complex
Singapore, 6 March (Argus) — Thai petrochemical producer Siam Cement (SCG) declared force majeure (FM) at its Rayong Olefins (ROC) complex in Map Ta Phut today because of feedstock supply disruptions caused by the US-Israeli war with Iran. The conflict in the Middle East and its impact on shipping through the strait of Hormuz have disrupted feedstock supply from the region. As a result, operations at ROCC have been "materially and adversely affected and may be further impacted" SCG said in its FM announcement seen by Argus. The FM could include "potential temporary suspension of production" if the Middle East tensions further intensify, it said. ROC's cracker can produce up to 800,000 t/yr of ethylene and 400,000 t/yr of propylene. Olefins from the cracker supply ROC's downstream plants including Siam Polyethylene, Thai Plastics and Chemicals, Thai Polyethylene and HMC Polymers. The ROC cracker has an associated aromatics unit that can produce up to 150,000 t/yr of benzene, 70,000 t/yr of toluene and 40,000 t/yr of xylenes. SCG owns two crackers in Map Ta Phut – ROC and Map Ta Phut Olefins (MOC). The MOC cracker can produce up to 1mn t/yr of ethylene and 500,000 t/yr of propylene. SCG's cracker is the fifth in Asia-Pacific to declare FM because of feedstock supply disruptions caused by the Iran conflict. Indonesia's Chandra Asri , South Korea's YNCC and Singapore's PCS and Aster have already FM this week. By Toong Shien Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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