GistReel

The Nigerian National Petroleum Company Limited (NNPCL) has 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, totaling 15,000 metric tons (approximately 13.6 million liters), is set to be loaded onto the Wonder Star MR1 vessel in the coming days, marking the refinery’s entry into petroleum product exports.

Although the volume entering the global market from NNPCL is currently modest, the development could influence Very Low Sulfur Fuel Oil (VLSFO) benchmarks over time and shift market dynamics for Atlantic Basin exporters supplying 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.