C5Natural GasolinePetrochemicals & NGLs
Petrochemicals & NGLs
C5

Natural Gasoline

Mont Belvieu (OPIS) / CME

Pentanes plus, the heaviest NGL: half gasoline blendstock and half the diluent that lets Canadian bitumen flow through a pipe.

Pentanes plus, the heaviest NGL: half gasoline blendstock and half the diluent that lets Canadian bitumen flow through a pipe.

Top Producers

approximate share of world natural gasoline / pentanes-plus supply (indicative)

United States: 40%United States 40%Rest of world: 60%Rest of world 60%

Main Uses

indicative split of natural gasoline demand by end use

Diluent (heavy crude): 45%Diluent (heavy crude) 45%Petrochemical feed: 25%Petrochemical feed 25%Gasoline blending: 30%Gasoline blending 30%

Can it be a contract?

6 of 8 tests passed

  • Written grade spec: passes. A published specification a buyer will accept sight-unseen.Published grade specification
  • Fungible: passes. Any lot of the grade substitutes for any other.Any lot substitutes for another
  • Dispatchable: passes. Available at the cadence the buyer needs. Storage is only one route to that; generation and continuous flow are others, which is why power trades without being storable.Available on demand from stock or flow
  • Delivery point: passes. A point the trade already uses can stand for the market. A contract cannot invent a delivery location; it has to adopt one the physical flows already run through. The clearest proof that a point qualifies is a liquid basis market against it: every other US gas hub quotes as a spread to Henry Hub, every ISO node settles against its hub, and grades quote as differentials to Brent. Where a point has no basis market quoting off it, it is not really the delivery point.A delivery point the trade already uses
  • Observable spot price: partly. Somebody publishes or assesses a price the trade recognises.Mont Belvieu assessment
  • Many on both sides: partly. Enough independent buyers and sellers that no one party sets the price.Blenders and diluent buyers, a narrow set
  • Volatility worth hedging: passes. Prices move enough that someone needs to transfer the risk.Moves enough to need hedging
  • Enforceable venue: passes. Contracts can be written and enforced where both sides trust the courts. This is separate from the delivery point and often decides it: Russia and Saudi Arabia sit on enormous, long-established physical flows and no forward settles in either, because the flow test passes and the law test does not.Enforceable in a trusted jurisdiction

Forward market: Yes

Passes as a US hub market; the most crude-like of the NGLs.

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Also called

pentanes plus, C5+

structural

Largest use

diluent for Canadian oil-sands bitumen

as of 2026

Hub

Mont Belvieu, Texas (OPIS / Argus)

as of 2026

Pricing

cents per gallon, nearest to crude of the NGLs

as of 2026

Natural gasoline, also called pentanes plus or C5+, is the heaviest and least volatile cut of the NGL barrel, a light liquid that looks and behaves much like a very light crude or condensate. It is recovered from gas processing and condensate, and it has three main lives. The biggest and most distinctive is as a diluent: it is blended into thick Canadian oil-sands bitumen so the resulting "dilbit" will flow through pipelines. The second is gasoline blending, and the third is as a petrochemical feedstock cracked for ethylene.

This is, again, a US shale story with a hub at Mont Belvieu, Texas. The surge in shale NGLs made the US a big exporter of natural gasoline, and a major volume flows north to Canada as diluent, a trade that ties US gas-processing output to Canadian heavy-oil production. Because it is so close to crude in character, natural gasoline usually prices nearest to crude oil of any NGL, frequently around or even above the WTI level.

There are active US markets: physical natural gasoline trades against OPIS and Argus assessments at Mont Belvieu in cents per gallon, and CME lists a financially-settled OPIS Mont Belvieu natural gasoline swap future alongside propane and butane. It completes the tradeable NGL barrel of ethane, propane, butane, and natural gasoline.

How It Trades

VenueMont Belvieu physical (OPIS, Argus); CME OPIS-settled swaps
Benchmark contractOPIS Mont Belvieu natural gasoline; CME natural gasoline (OPIS) swap future
Contract sizeCME swaps 42,000 gallons (1,000 barrels); physical in barrels
Price termsUS cents per gallon (close to crude, often near WTI)
SettlementPhysical at Mont Belvieu; CME contracts financially settled against OPIS
Typical curveTracks crude oil and Canadian diluent demand more than seasonal gasoline blending
LiquidityAn active US NGL market; the heaviest and most crude-like of the NGLs

Supply and Demand

Top producers

  1. United States: the dominant producer from shale gas processing
  2. Canada and other gas-processing regions
  3. Condensate-rich gas fields worldwide

A by-product of gas processing and condensate; US supply rose sharply with shale.

Top consumers

  1. Canadian oil-sands producers (diluent for bitumen)
  2. Gasoline blenders
  3. Petrochemical crackers (ethylene feed)
  4. Export markets

Major uses

  • Diluent to make Canadian bitumen pipelineable (the largest use)
  • Gasoline blending
  • Ethylene cracker feedstock

What Moves the Price

  • Crude oil prices (natural gasoline prices nearest to crude of any NGL)
  • Canadian oil-sands production and diluent demand
  • US shale NGL production
  • Gasoline blending economics
  • Ethylene feedstock economics

Moments That Made the Market

2010s

Shale NGL growth makes the US a major natural gasoline exporter and Canada's diluent supplier.

Ongoing

Diluent demand ties US gas processing to Canadian heavy-oil pipeline flows.

What Changed Since the 2010 Era

  • US natural gasoline became the diluent that moves Canadian bitumen.
  • Mont Belvieu set the price for a newly abundant NGL.
  • OPIS swaps made the heaviest NGL hedgeable.

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