- Singapore is set to receive this week the first cargo of low-sulfur straight-run fuel (LSSR) oil exported from Nigeria’s newly built Dangote refinery.
- The newly-commissioned refinery will now be able to export low-sulphur fuel to Asia.
- This region is in structural shortage of the fuel oil needed to refuel ships at Singapore, the largest bunker hub in the world.
Singapore, is set to receive its first low-sulphur straight-run fuel oil (LSSR) shipment from Nigeria’s new Dangote refinery this week, reports Safety4sea quoting ship-tracking data and market sources.
This shipment represents a new trade route from the recently commissioned refinery to Asia, a region that faces a shortage of low-sulphur fuel oil needed for ship refueling at Singapore, the world’s largest bunkering hub.
Singapore to receive first LSSR shipment
The Dangote refinery, which began production in January and cost $20 billion to build, has a refining capacity of up to 650,000 barrels per day (bpd) and will be the largest refinery in Africa and Europe once it reaches full capacity.
Since March, the refinery has been exporting more LSSR, with most shipments going to America and Europe, according to ship-tracking data from Kpler and Vortexa.
Some market sources suggested the cargo was sent to Asia due to a weaker market in Europe. The front-month 0.5% LSFO east-west spread, indicating the price difference between the East and the West, remained above $40 per ton this week, according to LSEG data.
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Source: Safety4sea
