The Nigerian National Petroleum Company Limited (NNPC) has sold its first cargo of low sulfur straight run fuel oil (LSSR) produced at the Port Harcourt refinery to Dubai-based Gulf Transport & Trading Limited (GTT).
The cargo is set to be loaded in the coming days aboard the Wonder Star MR1 vessel, marking the commencement of operations at the refinery and the exportation of petroleum products. The shipment will include 15,000 metric tons of LSSR, equivalent to approximately 13.6 million litres.
While the volume of this initial export is relatively small, it has the potential to influence Very Low Sulphur Fuel Oil (VLSFO) benchmarks in the future. It could also reshape market dynamics for Atlantic Basin exporters to Nigeria and other regions.
According to Kpler, a data and analysis company, the sulfur content of the NNPC’s export is 0.26% by weight, with a density of 0.918 g/ml at 15°C. The cargo was sold at an $8.50/t discount to the NWE 0.5% benchmark on a Free on Board (FOB) basis.
Kpler further noted that this development could reduce Nigeria’s dependence on traditional imports from suppliers in Africa and Europe. “Nigeria’s falling clean product (CPP) imports are already decreasing, dragging imports into the wider West Africa region lower as well,” the report stated.
