The Nigerian National Petroleum Company Limited (NNPCL) has reportedly sold its first low-sulfur straight-run fuel oil (LSSR) from Port-Harcourt Refinery to Dubai-based Gulf Transport & Trading Limited (GTT).
The Gulf Transport & Trading Limited is expected to load the cargo in the coming days onboard the Wonder Star MR1 ship, signaling the commencement of operations at the plant and the exportation of petroleum products.
The ship will load 15,000 metric tons of the product, which translates to about 13.6 million liters.
While the volume coming from the NNPC into the global market is still small, the development has the potential to impact the Very Low Sulphur Fuel Oil (VLSFO) benchmarks in the future while changing the market realities for Atlantic Basin exporters into Nigeria and other regions.
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.