India and Saudi Arabia are to collaborate on the development of two integrated refinery and petrochemical plants in India. The plan was announced after Indian prime minister Narendra Modi met Saudi counterpart Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 pledged to invest $100bn in India in several sectors including energy and petrochemicals. No further details have been provided but the projects could be Indian state-run BPCL's planned facility in Andhra Pradesh and oil firm ONGC's refinery project in Gujarat, according to industry participants. Plans for a 1.2mn b/d refinery in Ratnagiri alongside the UAE's Adnoc have been abandoned because of logistical and land acquisition challenges, industry participants say.
Related news posts
US mandates record-high biofuel use: Update 2
US mandates record-high biofuel use: Update 2
Updates with details from final regulatory text New York, 27 March (Argus) — The US will require record-high biofuel use over the next two years, boosting soybean farmers and alternative diesel producers at the expense of oil refiners that warned of higher pump prices. Oil refiners will have to bring billions more gallons of biodiesel and renewable diesel to market in 2026 and 2027, according to new blend requirements released by President Donald Trump's administration Friday. The mandates for biomass-based diesel this year alone are more than 60pc above targets in the category last year, the biggest annual step change in program history. The requirements come as Trump and Republicans in Congress see more support for biofuels as one way to help farmers hurt by trade wars and rising input costs. They also come at the same time as war in the Middle East has pushed up the cost of oil products, raising interest in alternatives like biofuels. Requiring "the highest volumes of renewable fuels in history" will create rural jobs and "massively increase our nation's energy supply", Trump said at a White House event. The Environmental Protection Agency (EPA) requires oil refiners and importers to annually blend different types of biofuels or buy Renewable Identification Number (RIN) credits from those that do. Traders expecting high quotas had already boosted the price of RINs — and key renewable diesel inputs like soybean oil — to multiyear highs this week. Friday's final rule includes a record-high mandate of 26.81bn RINs from total renewable fuel blending in 2026 and 27.02bn RINs in 2027, though fewer RINs per gallon next year for some fuels mean those future requirements are even more ambitious than they first appear. EPA sets total blend requirements and requires that a portion come from lower-carbon "advanced" biofuel types including biomass-based diesel. A gallon of corn ethanol generates one RIN, while more energy-dense fuels like renewable diesel earn more. Other updates show the Trump administration siding clearly with farmers over refiners. Larger oil companies, for instance, will have to blend more biofuels to offset the demand hit from recently generous program exemptions for some small refining rivals. Spread over the next two years, the added mandate of more than 2bn RINs equals around 70pc of biofuel volumes expected to be exempted from 2023-2025 blend quotas, higher than other options EPA considered. The administration did punt an earlier plan to penalize imports, which would have been one of the most substantial and legally contested reforms in program history. While the final rule includes few more details, EPA expects to implement some version of that provision — which could mean foreign biofuels and feedstocks receive half the RINs as domestic product — starting in 2028. Farm groups have pushed regulators to do more to restrict inputs that compete with US crops, including recycled cooking oil that major renewable diesel plants bring in from countries like China. Refiners had lobbied the administration this month to shift course, warning that higher mandates would spill into retail fuel prices already rising because of war in the Middle East. With affordability concerns top of mind for voters ahead of this year's midterm elections, the possibility of higher food and fuel prices presents political risk for Republicans. "It's baffling, with fuel prices already rising due to the conflict in Iran, that EPA is finalizing a rule that will make things far worse for consumers", said Chet Thompson, president of the American Fuel & Petrochemical Manufacturers, a group usually on board with Trump's energy policy. The mandates are certain to draw legal challenges, potentially from refiners or environmental groups. But as courts debate the details, the quotas are likely to support continued growth in not just US biofuel production but feedstock processing as well. Crop trading giants like Bunge and Cargill have invested heavily in new soybean and canola crush facilities, hoping to supply more vegetable oils to biofuel plants. Biomass-based diesel wins more than other fuels While the mandates will also support production margins for other biofuels, domestic demand for corn ethanol — the most widely used biofuel in the US — depends more on Congress. Lawmakers have struggled for months to reach a compromise on legislation that would permanently exempt a higher-ethanol gasoline blend from smog rules that currently limit summertime sales. Trump said Friday he was trusting legislative leaders to soon reach a deal. Gasoline stations can continue supplying fuel with up to 15pc ethanol this summer, more than the typical 10pc blend, because of temporary emergency regulations that the Trump administration started issuing this week. But so-called "E15" is still not sold at most US retail outlets. Renewable diesel production capacity in the US, already at record highs and growing, has boomed in part because the biofuel has fewer blend limits. By Cole Martin Final renewable volume obligations bn RINs 2025 2026 2027 Cellulosic biofuel 1.21 1.36 1.43 Biomass-based diesel 5.36* 9.07 9.20 Advanced biofuel 7.33 11.10 11.32 Total renewable fuel 22.33 26.81 27.02 *2025 biomass-based diesel mandate set in gallons, converted here to RINs Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US styrene exporters move to fulfill supply constraints
US styrene exporters move to fulfill supply constraints
Houston, 27 March (Argus) — US styrene monomer (SM) exporters are working to fill widening supply gaps in Europe following the outbreak of the Mideast Gulf war, which has impeded vessel traffic through the strait of Hormuz and sharply reduced Middle East SM export flows. The global supply constraint has pushed US styrene to a nearly two-year high just days before the start of the American Fuel & Petrochemical Manufacturers' International Petrochemical Conference in San Antonio, Texas, from 29-31 March 2026, where industry participants gather from around the world to discuss pertinent topics in petrochemical markets and construct forward-looking views for the forthcoming year. Producers in the Middle East make up a significant portion of global styrene trade. Saudi Arabia accounts for 44pc of China's SM imports, 40pc of India imports and 33pc of European imports, according to Global Trade Tracker data. Europe has been particularly exposed as shipments through the Mideast Gulf have slowed down. European SM prices have risen by 40pc since the start of the conflict because of tight SM supply, reaching $1,697.50/t on 26 March, according to Argus data. US SM prices increased by 27pc over the same period to $1,450/t, opening the paper arbitrage from the US Gulf coast (USGC) to Europe. Heading into April, US exporters are attempting to secure more vessels for trans Atlantic shipments, but tight tanker availability has created significant export bottlenecks, market participants said. Bulk freight shipping availability from the USGC to northwest Europe and the Mediterranean remained restricted in March, pushing freight rates sharply higher. Estimated shipping costs from the USGC to Europe nearly doubled to around $140/t this week from $72/t in February. Estimated North American SM operating rates ranged from 56-60pc this week, according to a generic Argus model with run rates pegged by market participants. Operating rates have been reduced because of planned maintenance at two USGC SM plants: SABIC and TotalEnergies' joint venture facility in Carville, Louisiana, and Ineos Styrolution's plant in Bayport, Texas. The Carville, Louisiana, unit is expected back on line in early April, potentially lifting regional rates to around 65pc, but US Gulf coast spot availability remains limited. Sources estimate roughly 5,000 metric tonnes of SM is available for April spot sales without producers drawing from their derivative units. Export constraints are compounded by a heavy global turnaround season. At least two US SM units are in planned outages, two Saudi Arabian plants were scheduled for maintenance in March and at least two European feedstock ethylene crackers underwent work in the first quarter. More recently, Saudi Arabian state-controlled petrochemicals producer [Sabic has declared force majeure] (https://direct.argusmedia.com/newsandanalysis/article/2806297) on its methanol and SM sales, effective 26 March, citing logistics disruptions stemming from the ongoing US-Iran war and impeded vessel traffic through the strait of Hormuz. Tight SM supply has begun to filter into downstream markets. Polystyrene (PS) and acrylonitrile butadiene styrene (ABS) producers are entering a seasonably stronger demand period with higher pricing. The impact is expected to ripple through consumer goods such as plastic take-away containers, disposable cutlery, foam packaging and ABS based products including toys and Lego bricks, sources said. As the US and global styrene turnaround season continues, market participants expect inventories to remain tight until domestic maintenance wraps up in the second quarter. Global SM availability is likely to stay constrained while vessel shortages persist and shipments remain restricted through the strait of Hormuz, sources said. By Jake Caldwell Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
IOCs temper Venezuela investment expectations
IOCs temper Venezuela investment expectations
Election timelines remain unknown and upstream investment terms still fall short of requirements, write Carla Bass and Stephen Cunningham Houston, 27 March (Argus) — The White House and the Venezuelan opposition say that the US' intervention will lead to significant and lasting change for Venezuela and its oil sector. For international oil companies, the proof will be in Venezuela's investment environment. Washington's control over Venezuelan oil funds will ensure the government in Caracas remains aligned with the US and international investor interests until fair elections can be held, US energy secretary Chris Wright told the CERAWeek by S&P Global event in Houston, Texas, this week. "It's not a Jeffersonian democracy yet, but it's meaningfully better than it was three months ago," he said. The US seized former president Nicolas Maduro on 3 January, accused him of widespread election fraud and drug trafficking, and put his vice-president, Delcy Rodriguez, into power. Washington has since eased sanctions on Venezuela's oil industry and obliged market participants to make payments through US-controlled accounts. It has demanded that Venezuela open its oil and other commodity sectors to investment. Caracas has passed a new hydrocarbons law , but further reforms are still needed to improve its international arbitration allowances. Venezuelan opposition leader Maria Corina Machado appears understandably impatient for the free and fair elections that she hopes will shortly pave the way for democracy in the country, as well as transform and privatise Venezuela's oil sector after decades of decline. The US has yet to set a timeline for those elections, although its officials insist they are the end goal. Venezuela could reach 5mn b/d of crude production in 10 years if its oil sector receives $150bn of investment, Machado said at CERAWeek. This would be far above Venezuela's last peak of about 3mn b/d two decades ago, and current output of about 1mn b/d. Machado's plan for Venezuela's energy sector includes privatising state-owned PdV — which she says has become a "bankrupt, criminal organisation" — creating an independent energy regulatory agency, and offering 25-year production contracts with 20pc royalties and the ability for investors to book production. But her hopes go beyond the expectations of the international oil companies sizing up investment prospects. Chevron was the last US producer still in Venezuela before Maduro's seizure , and it has increased its output there since then, chief executive Mike Wirth said. Venezuelan oil reforms "have moved in the right direction" since the US intervention, but returning Venezuela to 3mn b/d "will require significant billions of dollars and time to get there", he said. Shell's initial focus in Venezuela will be geared towards natural gas that can be monetised through LNG, chief executive Wael Sawan said. "We could even be in a position to take final investment decisions on one or two projects before the end of this year, if afforded the right fiscal and legal frameworks," he said. Once bitten ExxonMobil initially told the White House Venezuela was still "uninvestable", but it has since softened its approach. It has a team on the ground assessing what it would take to rebuild the country's long-neglected oil industry, upstream president Dan Ammann told CERAWeek. ConocoPhillips maintains the most blunt assessment. Venezuela needs a "completely rewired" fiscal regime to attract the significant investment needed, as its revised hydrocarbons law is "woefully inadequate", chief executive Ryan Lance said. His company's priority is trying to secure the $12bn in international arbitration awards it is owed over Venezuelan asset seizures in 2007. And he had a message for the White House as it tries to spur new investments in Venezuela following its legally contentious intervention. "Not only do you need physical security, you need contract sanctity and policy durability, not only on the Venezuelan side but on the US side." Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US mandates record-high biofuel use: Update
US mandates record-high biofuel use: Update
Updates throughout with details on announcement New York, 27 March (Argus) — The US will require record-high biofuel use over the next two years, boosting soybean farmers and alternative diesel producers at the expense of oil refiners that warned of higher pump prices. Oil refiners will have to bring billions more gallons of biodiesel and renewable diesel to market in 2026 and 2027, according to high-level targets previewed by President Donald Trump's administration. More details will come in final regulatory text that could be published late on Friday. The requirements come as Trump and Republicans in Congress see more support for biofuels as one way to help farmers hurt by trade wars and rising input costs. They also come at the same time as war in the Middle East has pushed up the cost of oil products, raising interest in alternatives like biofuels. Requiring "the highest volumes of renewable fuels in history" will create rural jobs and "massively increase our nation's energy supply", Trump said at a White House event. The Environmental Protection Agency (EPA) requires oil refiners and importers to annually blend different types of biofuels or buy Renewable Identification Number (RIN) credits from those that do. Traders expecting high quotas had already boosted the price of RINs — and key renewable diesel inputs like soybean oil — to multiyear highs this week. Friday's final rule includes a record-high mandate of 26.81bn RINs from total renewable fuel blending this year and 27.02bn RINs next year. EPA sets total blend requirements and requires that a portion come from lower-carbon "advanced" biofuel types including biomass-based diesel. A gallon of corn ethanol generates one RIN, while more energy-dense fuels like renewable diesel earn more. Other updates show the Trump administration siding clearly with farmers over refiners. Larger oil companies, for instance, will have to blend more biofuels to offset the demand hit from recently generous program exemptions for some small refining rivals. Spread over the next two years, the added mandate equals around 70pc of biofuel volumes expected to be exempted from 2023-2025 blend quotas, higher than other options EPA considered. The administration did punt an earlier plan to penalize imports, which would have been one of the most substantial and legally contested reforms in program history. But EPA expects to implement that provision — which would mean foreign biofuels and feedstocks receive half the RINs as domestic product — starting in 2028. Farm groups have pushed regulators to do more to restrict inputs that compete with US crops, including recycled cooking oil that major renewable diesel plants bring in from countries like China. Refiners had lobbied the administration this month to shift course, warning that higher mandates would spill into retail fuel prices already rising because of war in the Middle East. With affordability concerns top of mind for voters ahead of this year's midterm elections, the possibility of higher food and fuel prices presents political risk for Republicans. "It's baffling, with fuel prices already rising due to the conflict in Iran, that EPA is finalizing a rule that will make things far worse for consumers", said Chet Thompson, president of the American Fuel & Petrochemical Manufacturers, a group usually on board with Trump's energy policy. The mandates are certain to draw legal challenges, potentially from refiners or environmental groups. But as courts debate the details, the quotas are likely to support continued growth in not just US biofuel production but feedstock processing as well. Crop trading giants like Bunge and Cargill have invested heavily in new soybean and canola crush facilities, hoping to supply more vegetable oils to biofuel plants. Renewable diesel wins more than other fuels While the mandates will also support production margins for other biofuels, domestic demand for corn ethanol — the most widely used biofuel in the US — depends more on Congress. Lawmakers have struggled for months to reach a compromise on legislation that would permanently exempt a higher-ethanol gasoline blend from smog rules that currently limit summertime sales. Trump said Friday he was trusting legislative leaders to soon reach a deal. Gasoline stations can continue supplying fuel with up to 15pc ethanol this summer, more than the typical 10pc blend, because of temporary emergency regulations that the Trump administration started issuing this week. But so-called "E15" is still not sold at most US retail outlets. Renewable diesel production capacity in the US, already at record highs and growing, has boomed in part because the biofuel has fewer blend limits. By Cole Martin Final renewable volume obligations bn RINs 2025 2026 2027 Cellulosic biofuel 1.21 1.36 1.43 Biomass-based diesel 5.36* 9.07 9.20 Advanced biofuel 7.33 11.10 11.32 Total renewable fuel 22.33 26.81 27.02 *2025 biomass-based diesel mandate set in gallons, converted here to RINs Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more