Nigeria’s Dangote Refinery is set to dispatch its first shipment of low-sulfur straight-run fuel oil (LSSR) to Singapore, marking its debut into the Asian market. According to ship tracking data and market sources, this pivotal shipment will establish a new trade route from the newly operational refinery to Asia, addressing the region’s consistent need for low-sulfur fuel oil for ship refueling in Singapore, the world’s largest bunkering hub.
Operational since January following a $20 billion investment, the Dangote refinery boasts a processing capacity of up to 650,000 barrels per day, positioning it to become the largest refinery in Africa and Europe upon reaching full capacity. Since March, the refinery has notably increased its LSSR exports, primarily targeting markets in the Americas and Europe. The upcoming shipment to Asia, due to arrive on Wednesday aboard the Glencore-chartered vessel Front Brage, will deliver approximately 124,000 metric tons (787,400 barrels) of LSSR to Singapore. This shift is partly attributed to weaker demand in Europe, as indicated by market data from LSEG.
Dangote’s pricing strategy for LSSR cargoes leverages Rotterdam’s 0.5 percent LSFO quotes on a free-on-board basis, although specific pricing details for this shipment remain undisclosed. Another LSSR shipment, expected to arrive in Singapore in July, further signifies Dangote’s expanding footprint in the Asian market. This development follows Dangote’s commencement of oil product exports in February and crude oil purchases from the Nigerian National Petroleum Company (NNPC) Ltd starting December 2023, highlighting the refinery’s rapidly growing operational scale and market influence.
Source: Business Day