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.
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.
South Korea approves Hyundai Chemical, Lotte merger
South Korea approves Hyundai Chemical, Lotte merger
Singapore, 25 February (Argus) — South Korea's trade, industry and resource ministry (Motir) has approved chemical producers Hyundai Chemical and Lotte Chemical Daesan's restructuring plans along with a support package on 25 February. Hyundai Chemical and Lotte Chemical jointly applied to merge their plants in November 2025 . Hyundai Chemical is a joint venture between Hyundai Oilbank and Lotte Chemical. This is the first project approved under South Korea's government-led rationalisation efforts across the Daesan, Ulsan and Yeosu petrochemical complexes. These efforts were in response to the industry's prolonged losses since 2021, driven by rapid capacity expansions, particularly in China. Under the approved plans, Lotte Chemical will merge its Daesan petrochemical plant with Hyundai Chemical, integrating the naphtha cracking centre (NCC) and downstream units. Parent companies Lotte Chemical and Hyundai Oilbank will invest 600bn Korean won ($420mn) each and will share equal ownership of the newly integrated corporation. The restructuring is expected to take three years, during which Lotte Chemical will suspend its 1.1mn t/yr ethylene cracker in Daesan, and reduce operations of low-profit downstream facilities to curb oversupply in the Daesan petrochemical complex. The newly integrated corporation aims to focus on producing higher value-added and eco-friendly products instead of general-purpose products, Motir said. The South Korean government will also provide a customised support package worth W2.1 trillion, which will include financial, taxation, regulatory, cost structure improvement, employment, and technology development assistance for the firms' restructuring implementation. But the specific financial measures are to be finalised by the Korean Development Bank after consultations with institutional creditors. Other key producers including YNCC, GS Caltex, LG Chem, S-Oil, SKGC, and KPIC also submitted their business restructuring proposals in December 2025, and are under government review. The submitted plans would meet the collective target to reduce the nation's naphtha cracking capacity by 2.7mn-3.7mn t, according to the ministry. But revisions to the plans have been requested, and finalised drafts for restructuring plans for the Yeosu and Ulsan petrochemical complexes are expected by the end of the first quarter of 2026, said market sources close to South Korean cracker operators. By Angie Liew Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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