Hungary can't stop importing Russian energy

Hungary has no intention to stop buying Russian oil, Hungarian Foreign Minister Peter Szijjarto said, as per Interfax.

"For us, energy supplies are a purely physical question. It can be nice to dream about buying oil and gas from somewhere. We can't ensure the safe supply of energy products for our country without Russian oil or gas sources," the Guardian quoted Szijjarto as saying on Tuesday.

"We can only buy from where we have infrastructure. And if you look at the physical infrastructure, it's obvious that without the Russian supplies, it is impossible to ensure the safe supply of the country," he said.

Szijjarto made the statement after U.S. President Donald Trump urged all NATO members to stop buying Russian oil.

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The Russian government is discussing extending the ban on gasoline exports for producers, which is in effect in September, to also include October, as well as the possibility of introducing a ban on diesel fuel exports, sources familiar with the discussion told Interfax.

The extension of the ban on gasoline exports for producers is highly likely, one source said.

Several sources in oil companies said that there is no need for a ban on diesel fuel exports, as there is currently enough of it on the market.

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Russian gas giant Gazprom is expanding underground gas storage capacity in Saratov Region to support exports to Uzbekistan, company deputy department head Sergei Khan said, as per Interfax.

"The Stepnovskoye storage facility is now developing. Instead of 68 million cubic meters per day of capacity, up to 80 mcm of daily capacity will be put into operation, and feeding of gas will be secured from this storage facility to the new export route through Kazakhstan to Uzbekistan," Khan was reported as saying by gas industry journal Gazovaya Promyshlennost.

He said every underground storage facility is a very complex geological site. "We've learned how to operate a gas storage facility even with an active water pressure regime. The Stepanovskoye storage facility has four geological reservoirs connected into two storage facilities, with crossflow between them and an active water pressure regime in one of the reservoirs," Khan said.

The Stepanovskoye underground gas storage facility, which opened in 1973, was built in the porous formations of the Vorobyov and Ardatov horizons of the depleted Stepanovskoye oil and gas condensate field. It can store 4.668 billion cubic meters of active gas and is used to even out seasonal fluctuations in gas consumption and peak loads in Saratov Region and the Ural-Volga region, as well as to maintain an operating pressure in the Central Asia-Center trunk gas pipeline.

Gazprom began exporting gas to Uzbekistan in October 2023 with the reversal of shipments through the Central Asia-Center pipeline system. Exports grew to 5.64 bcm in 2024 from 1.28 bcm in 2023.

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Propylene prices fell in Asia on Monday, as per Polymerupdate.

An industry source in Asia informed a Polymerupdate team member, "Propylene prices declined as muted trading activity and limited buying interest continued to weigh on the market."

On Monday, FOB Korea propylene prices were assessed at the USD 760-770/mt levels, a drop of USD (-5/mt) from Friday's assessed levels.

Meanwhile, CFR China propylene prices on Monday were assessed at the USD 790-800/mt levels, a fall of USD (-5/mt) from Friday.

In plant news, Shenhua Xinjiang Energy has restarted its polypropylene (PP) unit. around September 22, 2025, following a maintenance shutdown in August 2025. However, confirmation from an official source was not available. Located in Xinjiang, China, the PP unit has a production capacity of 450,000 mt/year.

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Last week, ethylene prices dropped in parts of Asia while they remained steady in the Southeast Asian region, as per Polymerupdate.

An industry source in Asia, requesting to remain unidentified, informed a Polymerupdate team member, "Ethylene prices in Asia declined because of low-priced November-arrival US cargo offers at CFR Northeast Asia, weak demand from polyethylene and styrene sectors, and sufficient regional supply. US manufacturers, taking advantage of inexpensive ethane feedstock, provided competitively priced shipments that compelled local sellers to adjust their expectations downward. Simultaneously, numerous downstream facilities in Asia are operating at lower capacities or are in maintenance because of weak margins and high stock levels, resulting in decreased ethylene demand. Although offers were made, no firm agreements were reached, as buyers stayed wary, anticipating additional price drops in the unstable crude and naphtha markets.'

The source added, ?The decline was also fuelled by a rise in local cargo supply in East China, as domestic manufacturers supplied more products to the market. This contributed to the total regional surplus and further impacted sentiment, intensifying the downward strain on spot prices. Nonetheless, the effect on import shipments was restricted, according to some participants, since the availability of regional material arriving in October stayed constant. This maintained a partial support for import talks, as sellers kept their offers stable while expecting tighter balances in the future."

On Friday, FOB Korea ethylene prices were assessed at the USD 805-815/mt levels while FOB Japan ethylene prices were assessed at the USD 800-810/mt levels, both declined by USD (-5/mt) week on week.

CFR North East Asia ethylene prices were assessed at the USD 840-850/mt levels, a week on week decrease of USD (-5/mt).

The availability of ethylene in Northeast Asia has generally increased, mainly due to fewer regional cracker shutdowns and a rise in deep sea cargo offers, which enhanced the supply of imported ethylene. In South Korea, cracker utilization rates remained mostly consistent week-over-week, reflecting steady domestic production levels. Nonetheless, spot ethylene supplies stayed limited because of imminent cracker turnarounds planned for October, which are anticipated to briefly lower production and restrict short-term supply. In general, although the region exhibited indications of rising supply and stability, South Korea's market stayed wary with restricted spot availability prior to maintenance work, indicating a balanced but possibly tight market situation in the short term.

Meanwhile, CFR South East Asia ethylene prices were assessed flat at the USD 835-845/mt levels.

In Southeast Asia, ethylene prices stayed steady even though supply was still relatively constrained. The market's strain was mainly caused by the continued force majeure at a cracker in Singapore, which restricted supply, along with the reduced operating rates at a cracker in Malaysia, further diminishing regional availability. In spite of these supply limitations, prices remained steady, likely indicating balanced demand conditions or market anticipations of future stability. In general, the region saw a consistent pricing situation due to persistent supply limitations

In plant news, PTT Global Chemical (PTTGC) is likely to shut down its cracker in December 2025. However, the exact date and duration of the shutdown remain unconfirmed, as no official confirmation has been obtained. Located in Map Ta Phut, Thailand, the cracker has an ethylene production capacity of 500,000 mt/year.

In other plant news, Korea Petrochemical Industry Co (KPIC) is likely to shut down its cracker in the fourth quarter of 2026. However, the exact date and duration of the shutdown remain unconfirmed, as an authorized source was unavailable for comment. Located in Onsan, South Korea, the cracker has an ethylene production capacity of 900,000 mt/year.

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