The Nigerian National Petroleum Company Limited (NNPCL) reportedly completed its first sale of low-sulfur straight-run fuel oil (LSSR) from the Port Harcourt Refinery to Dubai-based Gulf Transport & Trading Limited (GTT).
The cargo of 15,000 metric tons (about 13.6 million liters) is scheduled to be loaded onto the Wonder Star MR1 vessel in the following days, marking the refinery’s start into petroleum product exports.
Although NNPCL’s present volume entering the global market is minor, the move has the potential to alter Very Low Sulfur Fuel Oil (VLSFO) benchmarks over time, shifting market dynamics for Atlantic Basin exporters supplying Nigeria and other locations.
According to the Guardian, “the sulfur content of the export by NNPC stands at 0.26 percent per wt and a 0.918 g/ml density at 15°C.”
The report noted that the cargo was sold at an $8.50/t discount to the NWE 0.5 percent benchmark on a Free on Board (FOB) basis.
It added that the “development would help displace imports from traditional suppliers in Africa and Europe, as Nigeria’s falling clean product (CPP) imports are already decreasing, dragging imports into the wider West Africa region lower as well”.
As of the time of filing this report, the NNPC spokesman, Olufemi Soneye, has yet to confirm the sales.
