Dangote Refinery is set to dispatch a shipment of low-sulfur straight-run fuel oil from Nigeria to Singapore this week, marking its debut in the Asian market, according to ship tracking data and market sources.
This shipment establishes a new trade route from the recently inaugurated refinery to Asia, addressing the consistent demand for low-sulfur fuel oil in Singapore, the world’s largest bunkering hub, Business Day reported.
Operational since January following a $20 billion investment, the Dangote Refinery boasts a processing capacity of up to 650,000 barrels per day. Once it reaches full capacity, it will become the largest refinery in Africa and Europe.
Since March, the Dangote Refinery has ramped up its LSSR exports, primarily sending shipments to the Americas and Europe, based on ship tracking data from Kpler and Vortexa.
The first Asian-bound shipment is scheduled to arrive on Wednesday. The Glencore-chartered vessel, Front Brage, will deliver approximately 124,000 metric tons (787,400 barrels) of LSSR to Singapore.
Market sources suggest this cargo was redirected to Asia due to weaker demand in Europe.
Data from LSEG indicates that the east-west spread for front-month 0.5 percent LSFO, reflecting the price difference between these regions, remained above $40 per ton this week.
Dangote’s LSSR cargoes are priced against Rotterdam’s 0.5 percent LSFO quotes on a free-on-board basis, though the specific pricing differential for this shipment was not disclosed by market sources.
Another LSSR shipment from the Dangote Refinery, carrying around 157,000 tons, is expected to reach Singapore in July aboard the vessel Stena Suede, according to ship tracking data.
LSSR is typically blended with other fuels to produce low-sulfur fuel oil for bunkering or used as feedstock in various refinery processes.
In February, Dangote began exporting oil products and started purchasing crude oil, primarily from the Nigerian National Petroleum Company Ltd, in December 2023.
