The Nigerian National Petroleum Company Limited (NNPCL) has successfully carried out its first fuel export from the Port Harcourt Refinery. The shipment, consisting of 15,000 metric tons (approximately 13.6 million liters) of low-sulfur straight-run fuel oil (LSSR), is destined for Dubai-based Gulf Transport & Trading Limited (GTT).
The cargo will soon be loaded onto the Wonder Star MR1 vessel, marking the refinery’s initial foray into petroleum product exports.
While the export volume is relatively small, experts suggest it could gradually impact Very Low Sulfur Fuel Oil (VLSFO) benchmarks and alter market dynamics for exporters in the Atlantic Basin that supply Nigeria and neighboring regions.
According to reports, the fuel oil boasts a sulfur content of 0.26% per weight and a density of 0.918 g/ml at 15°C. Sold at an $8.50/ton discount to the NWE 0.5% benchmark on a Free on Board (FOB) basis, the development may reduce Nigeria’s reliance on imports from Europe and Africa, contributing to declining clean product imports across the broader West Africa region.
NNPCL’s move signifies a potential shift in Nigeria’s energy market landscape, though the company’s spokesperson, Olufemi Soneye, has not yet confirmed the transaction.