The Nigerian National Petroleum Company Limited, NNPCL, has reportedly sold its first shipment of low-sulfur straight-run fuel oil, LSSR, from the Port-Harcourt Refinery.
Cyber Reporters gathered that the cargo was sold to Dubai-based Gulf Transport & Trading Limited, GTT.
The shipment, totaling 15,000 metric tons (13.6 million liters), is set to be loaded onto the Wonder Star MR1 ship in the coming days.
This development marks the commencement of operations at the refinery and the exportation of petroleum products.
It was gathered that while the volume is relatively small, it has the potential to impact global Very Low Sulphur Fuel Oil, VLSFO, benchmarks and change market dynamics for Atlantic Basin exporters.
Reports say the exported fuel oil has a sulfur content of 0.26 percent per wt and a density of 0.918 g/ml at 15°C.
This meets the international standards for low-sulfur fuel oil. The cargo was sold at an $8.50/t discount to the NWE 0.5 percent benchmark on a Free on Board (FOB) basis.
This development is expected to help reduce Nigeria’s reliance on imports from traditional suppliers in Africa and Europe.
The impact of this development will be felt in the global oil market, as Nigeria becomes a new player in the export of low-sulfur fuel oil. This could lead to changes in market dynamics and pricing.
As of now, the NNPC spokesman, Olufemi Soneye, has yet to confirm the sale.
However, if confirmed, this development will be a significant milestone for Nigeria’s oil and gas industry
