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.
Refinity taps Zeton for plastics-to-olefins demo plant
Refinity taps Zeton for plastics-to-olefins demo plant
Houston, 27 July (Argus) — US plastics recycling technology firm Refinity has chosen Canadian engineering company Zeton to design and build a 10,000 metric tonnes/yr modular plastics-to-olefins demonstration plant. Refinity plans to situate the facility next to a third-party petrochemical steam cracker, allowing olefins made from mixed plastic waste to feed directly into downstream operations. The company's fluidized-bed technology converts mixed plastic waste into light olefins, such as ethylene and propylene, which can be integrated into petrochemical production after the steam-cracking process. The technology can achieve higher plastics-to-olefins yields than routes that first convert plastic waste into pyrolysis oil before steam cracking, according to Refinity. Zeton, based in Oakville, Ontario, specializes in designing and building pilot, demonstration and modular production plants. The company has completed more than 1,000 projects in 45 countries and serves chemical, energy and petrochemical clients. Neither Refinity nor Zeton disclosed the location of the demonstration plant, the project's cost, expected start-up date or the identity of the steam-cracker partner. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
LyondellBasell to shut remaining PP output at Brindisi
LyondellBasell to shut remaining PP output at Brindisi
London, 11 June (Argus) — Petrochemical producer LyondellBasell said it plans to close its remaining polypropylene (PP) production at Brindisi, Italy, by the end of the year, but union sources say that is contingent on it not finding acceptable alternative solutions for the unit. LyondellBasell told Argus that a "challenging macroeconomic environment, persistent uncertainty around feedstock availability, and structurally higher operating and logistics costs have diminished the site's competitiveness and made it increasingly difficult to sustain a viable long-term position". The Brindisi PP unit has a nameplate capacity of 260,000 t/yr. It was the first Spheripol unit, opened in 1982, and mainly produces commodity PP homopolymer grades for packaging. Another PP unit at the site was closed by LyondellBasell in 2024 . The firm does not have upstream propylene production at Brindisi. Feedstock is shipped in by sea from other sites, mainly from Priolo in Italy, adding significant freight costs to its cost position. The site previously received up to 220,000 t/yr of propylene from Eni's Versalis Brindisi cracker before its closure in April last year . "Given Eni's decision on the cracker and the overall crisis in general, the company [LyondellBasell] told us it would be closing the unit at the end of December," said Carlo Perrucci, regional secretary of trade union Uiltec. Perrucci said LyondellBasell had put the PP unit up for sale at a symbolic price, but it would be difficult to find a buyer without the cracker. "Eni told us it has hired JPMorgan to try and find a buyer for its cracking plant," Perrucci said. "If they succeed, it might make LyondellBasell's search for a buyer easier." LyondellBasell said it remains committed to the European market and will continue to meet customer demand through its broader production network. The firm completed the sale of several European assets to a new regional petrochemical and polymer company, Velogy, on 1 May. By Stephen Jewkes and Sam Hashmi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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.
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