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.
US May PGP contract falls by 7¢/lb
US May PGP contract falls by 7¢/lb
Houston, 29 May (Argus) — The US polymer-grade propylene (PGP) contract for May fell by 7¢/lb to 52¢/lb, the steepest drop in two years, on weaker spot prices and steady production. The drop was in line with a 6.6¢/lb drop in Argus ' May PGP contract index, which settled on 15 May, and it was the sharpest drop since the April 2024 contract settled 10¢/lb lower. But April 2026's contract at 59¢/lb was close to a four-year high after spot prices in March and early April rose sharply, tracking crude values, following Iran's closure of the strait of Hormuz. Some participants described May as a "price correction", or mean reversion, after the spike. "I think panic buying sent spot PGP prices up to unsustainable levels," one market participant said. "Now everyone realizes supply is healthy, and the market is calming down." The settlement came on the penultimate trading day of the month, causing some concern among market participants. One contract participant disagreed with the settlement, sources said. US spot PGP prices fell from 53¢/lb at the start of May to a low of 37.25¢/lb this week, a drop of 30pc. Since peaking in April at 62.5¢/lb, spot PGP prices have fallen by 40pc and are only 13pc higher than pre-war levels. The fall in PGP values this month outpaced declines in West Texas Intermediate (WTI) crude. Argus ' WTI Houston outright price fell to $90.22/bl on 28 May, down by 17pc from from $108.92/bl at the start of May. US PGP output was steady in May, with only a minor issue at one propane dehydrogenation (PDH) unit. Enterprise Products Partners' 750,000 t/yr PDH-1 unit compressor tripped two weeks ago and returned to full rates soon after. US PDH units are running full out and supply seems to be healthy, a market participant said. By Michael Camarda Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan’s cracker rates fall to a historic low again
Japan’s cracker rates fall to a historic low again
Tokyo, 22 May (Argus) — Average operating rates of Japan's naphtha-fed ethylene crackers fell to 67.3pc in April, reaching a record low for the second consecutive month, according to the Japan Petrochemical Industry Association (JPCA). Persistent naphtha supply disruption due to the US-Iran war in the Middle East, along with multiple planned turnarounds of the crackers, have pressured operating rates. The April operating rates dropped by 11.3 percentage points from the same month in 2025, and by 1.5 percentage points from March, when rates hit a record low of 68.8pc. Four crackers were shut for regular maintenance in April, compared to none a year earlier. Ethylene output in April declined by 37pc on the year to 283,500t but rose by 4pc from March. Production of major polymers — low-density polyethylene (LDPE) and polypropylene (PP) — also fell by 27pc to 79,100t and by 24pc to 146,400t, respectively, from a year earlier. Polyvinyl chloride (PVC) output dropped by 24pc on the year to 93,200t. But production of LDPE, PP, and PVC in April recovered from March levels, as domestic petrochemical producers have attempted to diversify feedstock naphtha import sources beyond the Middle East, according to JPCA. LDPE and PP output rose by 47pc and 17pc in April on the month, while PVC production increased by 4.3pc on the month. JPCA expects naphtha purchases from countries outside the Middle East to rapidly increase in May. Meanwhile, Japan has secured polyethylene and PP inventories that could cover domestic demand for more than three months, and naphtha production at domestic refineries has helped ease the impact of supply disruptions, JPCA added. Japan relies heavily on the Middle East for its naphtha supply. The country imported 583,609t of naphtha from the UAE, Kuwait, Qatar, and Bahrain in March, accounting for 73pc of total imports of 798,523t imports in March, according to the latest data from finance ministry. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India’s Gail restarts Pata petchem complex
India’s Gail restarts Pata petchem complex
Mumbai, 19 May (Argus) — India's state-owned energy firm Gail has resumed petrochemicals production at its Pata facility in the northern state of Uttar Pradesh on 19 May, following a shutdown that lasted over two months, a source familiar with the matter told Argus . The plant has been shut since 9 March after a government order directed gas distributors to start full or partial curtailment of gas supplies to petrochemical plants, including ONGC Petro Additions (Opal), Gail Pata and Reliance's oil-to-chemicals units. The Pata complex will likely run at a reduced operating rate this week, another source told Argus , although the exact run rate could not be confirmed. It was not immediately clear if the New Delhi issued a fresh order that allowed for a phased restart of the petrochemicals project. India's Ministry of Petroleum and Natural Gas and Gail did not immediately respond to Argus requests for comment. The status of the other plants could also not be determined at the time of writing. Gail's Pata facility has two steam crackers with a combined ethylene production capacity of 900,000 t/yr. It also has a linear low-density polyethylene/high-density polyethylene (LLDPE/HDPE) swing unit with a capacity of 610,000 t/yr and a separate HDPE capacity of 200,000 t/yr. The plant sources feedstock through a pipeline from Indian state-owned upstream firm ONGC's Hazira plant on the west coast of Gujarat. The restart of the plant would bolster domestic supply, partially offsetting reduced availability from Middle Eastern producers, which account for 62pc of India's PE imports, data from Global Trade Tracker show. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Eni seeks buyer for Brindisi cracking unit
Eni seeks buyer for Brindisi cracking unit
Milan, 29 April (Argus) — Italian energy company Eni has decided to sell its cracking unit at Brindisi in southern Italy and will appoint an adviser to find a buyer, Italy's industry ministry said. "With regard to the Brindisi site, Eni has told the minister it will pick a top international adviser to identify an industrial player interested in buying the activity earmarked for conservation [cracking]," the ministry said. The statement follows a meeting between industry minister Adolfo Urso and Eni on the group's plans, first announced in 2024, to transform three sites operated by Versalis, Eni's chemicals unit, in Puglia and Sicily. A sale of the Brindisi site, including the polyethylene plants, had not previously been contemplated when the cracking unit was shut early last year. Eni declined to comment on media reports naming US bank JPMorgan as a potential adviser. Versalis closed the Brindisi cracker in March 2025. The unit had ethylene capacity of 410,000 t/yr, propylene capacity of 220,000 t/yr and butadiene capacity of 145,000 t/yr. Versalis has continued to operate a 216,000 t/yr high-density polyethylene (HDPE) unit and a 205,000 t/yr linear low-density polyethylene (LLDPE) unit at the site using imported ethylene. LyondellBasell also continues to operate a 260,000 t/yr polypropylene plant at Brindisi. The ministry also said Eni's plans to build a lithium battery gigafactory at the Brindisi site for energy storage purposes were on track. Eni set up a joint venture with Seri Industrial in September last year, called Eni Storage Systems. At Priolo in Sicily, the ministry said the permitting process to reconvert the Versalis site was progressing. Eni and Kuwait's Q8 have committed to build and operate a new 500,000 t/yr biorefinery at the site, scheduled for completion in 2028. "Work on dismantling the cracking unit started in March," the ministry said. Work at Ragusa in Sicily to build a skills centre focused on safety and maintenance, alongside facilities to support bio and sustainable supply chains, is also under way, the ministry added. A further meeting between the ministry and Eni to update on the Versalis reconversion plans is scheduled for 25 June. By Stephen Jewkes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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