Dangote refinery has commenced the exportation of its refined product to the global market barely three months after it commenced operations in Nigeria.
For the first time, a Cargo of Low- Sulphur Straight Run Fuel Oil (LSSR) produced at the 650,000 barrels a day plant had now reached European market.
According to data from trade analytics firm, Kpler, on the shipment, the 90,000 tons cargo was loaded at Dangote’s terminal in Lekki on 25 April and discharged in Rotterdam on 13 May.
Industry experts believe that the cargo will likely be used as a blendstock to produce very-low sulphur fuel oil (VLSFO).
It is estimated that about 72pc of the fuel oil exported from Dangote had been delivered to the U.S’ market since the refinery offered its first LSSR export tender mid-February and that a total of just less than 620,000 tons has been delivered so far.
Also, a trade analytics firm, Vortexa, also disclosed that another LSSR shipment of 83,400 tons departed the refinery on 7 May, and that the cargo is scheduled to arrive France on 22 May, but market participants say this is unlikely to be the cargo’s final destination.
The LSSR price assessments on a fob Amsterdam-Rotterdam-Antwerp (ARA) basis have stayed at a $5/bl premium to front-month Ice Brent crude futures this week, narrowing from an 18- month high of $7.50/bl in mid-April.
Experts confirmed that maintenance work that began in the first quarter affected fluid catalytic cracking (FCC) units at some refineries. The FCCs take LSSR and low-sulphur vacuum gasoil to increase gasoline yields.
