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.
Japanese ethylene producers unite for decarbonization
Japanese ethylene producers unite for decarbonization
Tokyo, 8 May (Argus) — Japanese petrochemical producers Mitsui Chemicals, Mitsubishi Chemical and Asahi Kasei have agreed to co-operate on decarbonization of their ethylene crackers in west Japan, targeting to decide a pathway within the current April 2024-March 2025 fiscal year. They plan to accelerate carbon neutrality at Mitsubishi Chemical and Asahi Kasei's 496,000 t/yr Mizushima cracker in Okayama prefecture and Mitsui Chemicals' 455,000 t/yr Osaka cracker in Osaka prefecture. The partners aim to introduce biomass feedstocks such as biomass-based naphtha and bioethanol and low-carbon cracking fuels like ammonia, hydrogen and electricity. They said joining forces will enable them to accelerate reducing greenhouse gas emissions, although they have not yet decided any further details. Mitsui Chemicals has experience in using bio-naphtha and recycled pyrolysis oil at its Osaka cracker. Japanese petrochemical producers have increasingly united to achieve decarbonization of their production processes, which account for around 10pc of the Japanese industrial sector's carbon dioxide emissions, according to the trade and industry ministry. Mitsui Chemicals, Sumitomo Chemical and Maruzen Petrochemical agreed to study the feasibility of chemical recycling and using bio-feedstocks at the Keiyo industrial complex in Chiba. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US spot PGP falls to lowest since November
US spot PGP falls to lowest since November
Houston, 17 April (Argus) — US prompt-month spot polymer-grade propylene (PGP) fell this week to the lowest in nearly five months on weak domestic demand for some smaller volume propylene derivatives, especially acrylonitrile (ACN) and propylene oxide (PO). US PGP traded on Tuesday at 41.5¢/lb, down by 30pc since 5 March and the lowest price since late November. US PGP's pricing in recent years has mostly been driven by supply changes, but market participants believe that some of the price drop since early March stems from weakness in PGP's smaller demand sources like ACN and PO. ACN consumes about 7pc of US propylene, declining from 10pc over the last six years, and PO accounts for around 11pc of US demand for propylene. US demand remains weak for polypropylene (PP), which accounts for about half of domestic PGP demand, but has increased over the last few weeks, with operating rates improving. Rising PGP demand has been offset by falling production of smaller volume derivatives like ACN and PO, largely driven by elevated PGP spot prices in the first quarter that narrowed margins. Cornerstone's 257,000 metric tonne (t)/yr ACN unit in Waggaman, Louisiana, has been down on an extended turnaround, according to market sources. That unit comprises 16pc of the US ACN capacity, according to Argus data. Another producer told Argus that ACN is being produced "to order," as demand has not been steady, saying "these are tough times" for ACN. A PO producer in Texas began a planned turnaround this month that is expected to last until mid-May, reducing demand for US propylene. The turnaround has shut 20pc of US PO capacity, according to Argus data. By Michael Camarda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
'World first' electric cracking plant starts in Germany
'World first' electric cracking plant starts in Germany
London, 17 April (Argus) — Chemical companies BASF, Sabic and Linde have started two electrically-heated steam cracking furnaces at BASF's Verbund site in Ludwigshafen, Germany, the world's first demonstration of the technology beyond pilot scale. The demonstration plant is fully integrated into the existing crackers at Ludwigshafen and will produce propylene, ethylene and potentially heavier olefins, according to a statement from the companies. It is designed to test the continuous operation of electric furnaces and collect data to support further development. The furnaces each employ a different electrical heating technology. By using renewable electricity instead of conventional fuels, the companies estimate it can reduce CO2 emissions by 90pc. The two furnaces will process roughly 4 t/hour of hydrocarbon feedstock and consume 6MWh of energy. The companies first announced their collaboration in 2021 , with BASF and Sabic contributing their expertise in operating steam crackers and Linde providing its intellectual property and expertise in steam cracking furnace technologies. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australian petchem firm Qenos enters administration
Australian petchem firm Qenos enters administration
Singapore, 17 April (Argus) — Australian olefins and polyethylene (PE) producer Qenos has entered into voluntary administration following a cash liquidity crunch. Australian advisory firm McGrathNicol has been appointed as voluntary administrators, with its first meeting with creditors, including employees, expected to be held on 30 April. A follow-up meeting will be held for the administrators to present the results of their investigation into the Qenos Group and offer recommendations. Qenos was formerly a joint venture between China's state-controlled ChemChina and US private equity group Blackstone. Qenos' new owner LAOP BidCo will provide funding to the voluntary administrators, employee wages and other necessary costs to shut the Botany plant in New South Wales. Qenos was "unable to confirm whether there will be sufficient assets available to meet employees' pre-appointment claims", in a circular released to employees. Qenos operates a 250,000 t/yr ethane cracker, a 90,000 t/yr low-density PE plant and a 130,000 t/yr linear low-density PE/high-density PE (HDPE) swing plant at Botany. Qenos stopped its ethylene and PE production at Botany in February 2023 after damage to a cooling water tower at its olefins complex. Qenos earlier planned to restart its Botany ethylene and PE plants in phases from late January this year but this failed to materialise. It separately in 2021 closed and mothballed one of its two ethylene units and one of its two 100,000 t/yr HDPE units in Altona, Victoria. This came after the closure of ExxonMobil's 90,000 b/d Altona refinery in August 2021 that supplied feedstock to Qenos' Altona cracker. No decision has been made on Qenos' ethylene and PE plant in Altona. Qenos' distribution arm eXsource will continue to operate normally. It supplies a range of polymers manufactured by Qenos, Bluestar, LyondellBasell and others within the domestic Australian market. By Yee Ying Ang Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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