Dangote Refinery begins exports of low-sulfur fuel oil to Singapore, marking its Asian market entry. The refinery, Africa’s largest, plans to eliminate Nigeria’s petrol imports by mid-July, reinforcing its pivotal role in the global energy trade.
The Dangote Refinery in Nigeria is set to export its first shipment of low-sulfur straight-run fuel oil (LSSR) to Singapore, marking its debut in the Asian market. This move opens a new trade route from Africa to Asia, addressing the demand for low-sulfur fuel oil in Singapore, the world’s largest bunker hub.
With a daily processing capacity of 650,000 barrels, the $20 billion refinery is poised to become Africa’s largest and the world’s biggest single-train refinery. Aliko Dangote, Chairman of Dangote Industries, has pledged that Nigeria will no longer need to import petrol once production of Premium Motor Spirit (PMS) commences in mid-July. The refinery has already bolstered its LSSR exports, with shipments to the Americas and Europe based on Rotterdam’s 0.5% LSFO benchmarks.
The inaugural shipment to Asia, aboard the Glencore-chartered vessel Front Brage, is expected to arrive in Singapore on July 26, 2024, carrying approximately 124,000 metric tons of LSSR. This decision was prompted by weaker European demand, showcasing Dangote Refinery’s adaptability in global markets. Another shipment of around 157,000 tons is scheduled to reach Singapore later in July aboard the Stena Suede vessel.
LSSR is essential for producing low-sulfur oil (LSFO) for bunkering and serves as feedstock in refinery operations. Since beginning exports in February 2024 and procuring crude oil from the Nigerian National Petroleum Corporation (NNPC) in December, the refinery has steadily positioned itself as a key player in Nigeria’s energy sector and beyond.
