America and Asia have remained key importers of Nigeria Dangote refinery’s low sulphur straight run (LSSR) fuel oil exports in 2024 so far.
However, trade sources expect volumes to lessen or hold mainly steady for the remainder of the year.
The LSSR exports from the newly-commissioned refinery can help to alleviate supply tightness in Asia, an area that is structurally short on low-sulphur fuel oil needed to fulfil refuelling demand at the world’s largest bunker hub Singapore.
An overall of over 500,000 metric tons of Nigeria’s LSSR have landed in Asia this year to-date, with another 255,000 lots showing up in September, data from analytics firm Kpler revealed. The second-largest destination is America, with volumes for Northern America and the Caribbean Islands totalling almost 700,000 heaps this year.
More powerful rates have actually drawn barrels over in recent months, with Asia getting its very first cargo in June, though trade sources anticipate Dangote to produce and export less LSSR going ahead.
More output depends on the refinery’s crude purchases and whether it increases its secondary refining unit effectively, sources said. Dangote did not instantly react to a Reuters ask for remark.
Processing lower-sulphur crudes such as the U.S. West Texas Intermediate results in more LSSR output, while exports also depend upon Nigeria’s domestic fuel need, stated Emril Jamil, senior analyst at LSEG Oil Research.
They purchased a lot of WTI. There will be more LLSR output as they are trying to ramp up the secondary units, Jamil said.
