The Nigerian National Petroleum Company Limited (NNPCL) has completed its first export sale of low-sulfur straight-run fuel oil (LSSR) from the recently upgraded Port Harcourt Refinery.
The 15,000-metric-ton cargo, equivalent to approximately 13.6 million liters, is destined for Gulf Transport & Trading Limited (GTT), a Dubai-based trading firm. The shipment will be loaded onto the Wonder Star MR1 vessel in the coming days, marking a milestone in Nigeria’s refining sector as the country begins exporting petroleum products from its domestic refineries.
The exported product, with a sulfur content of 0.26 percent and a density of 0.918 g/ml at 15°C, was sold at an $8.50 per ton discount to the Northwest Europe (NWE) 0.5 percent benchmark on a Free on Board (FOB) basis.
While the initial export volume is modest, it is expected to impact Very Low Sulfur Fuel Oil (VLSFO) benchmarks in global markets. Analysts suggest this move could reshape trade dynamics, particularly for Atlantic Basin exporters, as Nigeria reduces its reliance on imported petroleum products.
This development also poses a challenge to traditional fuel oil suppliers in Africa and Europe. With domestic refining capacity improving, Nigeria’s reduced demand for clean petroleum product (CPP) imports is already affecting broader West African import markets.
The commencement of fuel exports from the Port Harcourt Refinery signals NNPCL ambition to establish Nigeria as a significant player in the global petroleum market, further diversifying the country’s energy export portfolio.
