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.
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.
EIA raises US NGL production, demand forecasts
EIA raises US NGL production, demand forecasts
Houston, 8 April (Argus) — The US Energy Information Administration (EIA) raised its 10-year outlook for average production of natural gas plant liquids (NGLs) by 14.4pc. In its Annual Energy Outlook (AEO), the EIA estimated production of NGLs would average 8.85mn b/d from 2026 to 2035, up from the estimate of 7.74mn b/d for that period in its report last year . By 2050, production will reach 11.3mn b/d, EIA said, a 32.3pc hike from the agency's previous 2050 forecast. Consumption of hydrocarbon gas liquids (HGLs), which the EIA defines as ethane, propane, normal butane, isobutane, natural gasoline, and refinery olefins, is projected to average 3.82mn b/d over the next 10 years, up from the 3.69mn b/d forecast in the 2025 AEO. The agency continues to expect much of this demand to come from the industrial sector, including petrochemical manufacturing. EIA forecast 3,710 trillion Btu/y of industrial-sector HGL consumption between 2026-2035, up from its 3,630 trillion Btu/y forecast for the period last year. EIA also raised its estimate for domestic propane use in the residential, commercial, and transportation sectors across the period to 727 trillion Btu/y, up from 697 trillion Btu/y as estimated in 2025. The increase was almost entirely attributable to the residential sector, which the agency predicts will consume 485 trillion Btu/y, up from its previous 456 trillion Btu/y forecast for the period. By Joseph Barbour Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Saudi Sadara petchem site shuts down on US-Iran war
Saudi Sadara petchem site shuts down on US-Iran war
London, 31 March (Argus) — Sadara Chemical Company, a joint-venture between US-based chemical company Dow and Saudi Arabia's Aramco, has shut down production temporarily at its Jubail site in Saudi Arabia because of the US-Iran war, according to a regulatory filing. The cause for the shut down was cited as "ongoing disruption to Sadara's supply chains". The company does not currently have an estimate of when production will return, according to the statement. Shipping through the strait of Hormuz has remained disrupted since the start of the US-Iran war on 28 February. And earlier this month, Iran threatened the petrochemical complex with missile strikes , but the site so far has not been hit. The site can produce 1.5mn t/yr of ethylene and 400,000 t/yr of propylene and is integrated to produce 750,000 t/yr of LLDPE/HDPE, 350,000 t/yr of LDPE, 330,000 t/yr of propylene oxide and 360,000 t/yr of ethylene oxide. It has a capacity of 200,000 t/yr of TDI production and 400,000 t/yr of MDI production. The site can also produce 150,000 t/yr of ethanolamines which are distributed by Saudi Arabia petrochemical producer Sabic. Sabic declared a force majeure on ethanolamines supply in late March . Dow Chemicals, which holds a 35pc stake in Sadara and markets a significant share of its ethanolamines output, declared force majeure on 10 March in some markets, including Europe. Dow said it was unable to load volumes at Jubail because of logistics disruptions stemming from the war. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
S Korea starts review of Lotte Chemical, YNCC merger
S Korea starts review of Lotte Chemical, YNCC merger
Singapore, 20 March (Argus) — South Korea's Ministry of Trade, Industry and Resources (Motir) and the Korea Fair Trade Commission have started a preliminary review of Lotte Chemical's proposed merger with Yeochun NCC (YNCC) as part of the country's initiative to restructure the petrochemical segment. Under the proposed plan, Lotte Chemical will spin off part of its petrochemical operation in Yeosu, including its cracker and downstream units, establishing a new entity which will be merged with YNCC. For the downstream sector, the shareholders of YNCC — DL Chemical and Hanwha Solutions — will sell part of their downstream assets to YNCC. After the merger, Lotte Chemical, DL Chemical and Hanwha Solutions will each hold one-third stake in YNCC. The new business will focus on producing high value-added products, including linear density polyethylene (LDPE) and polyolefin elastomer (POE) for medical use, according to a statement released by Motir. This is the second merger review Motir is conducting after South Korea initiated a restructuring plan for its petrochemical industry to slash 2.7–3.7 mn t/yr of ethylene capacity, or up to 25pc of their total cracking capacity on August 2025 . Motir first approved the merger plan between Hyundai Chemical and Lotte Chemical in Daesan in February. Lotte Chemical owns two crackers in South Korea — one in Yeosu with an ethylene capacity of 1.2 mn t/yr, and another in Daesan with ethylene capacity of 1.05 mn t/yr. YNCC operates three crackers in Yeosu — its No.1 cracker can produce up to 900,000t/yr ethylene, while its No. 2 and No. 3 crackers produce 915,000t/yr and 500,000t/yr of ethylene, respectively. YNCC's No. 3 cracker has been idled since August 2025 because of margin concerns. Hanwha Solutions operates a 1.458 mn t/yr ethylene dichloride plant in Yeosu alongside a 330,000t/yr LDPE plant, and a 355,000t/yr linear low-density PE /high-density PE (LLDPE/HDPE) swing plant. Daelim has a 305,000t/yr HDPE unit and a 400,000t/yr LLDPE/HDPE swing plant in Yeosu. The petrochemical industry in Asia has been suffering from negative margins since 2022 because of oversupply from expanding capacities in the region, especially in China. Weak downstream demand has further weighed on production margins, putting pressure on cracker operators since early 2022 . By Toong Shien Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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