NNPC Sells First Low-Sulfur Fuel Oil to Dubai-Based Firm, Marking Milestone in Export Operations
The Nigerian National Petroleum Company Limited (NNPCL) has reportedly completed its first sale of low-sulfur straight-run fuel oil (LSSR) from the Port Harcourt Refinery.
The shipment is destined for Gulf Transport & Trading Limited (GTT), a Dubai-based trading company. This marks a significant milestone for NNPC as it begins exporting petroleum products from domestic refineries.
The cargo, totaling 15,000 metric tons—approximately 13.6 million liters—is expected to be loaded in the coming days aboard the Wonder Star MR1 vessel. This transaction signals the commencement of operations at the Port Harcourt Refinery following upgrades aimed at enhancing Nigeria’s refining capacity.
Implications for the Global and Regional Markets
While the volume of this initial export is relatively small, it has the potential to influence Very Low Sulfur Fuel Oil (VLSFO) benchmarks in global markets. Analysts also predict it could reshape trade dynamics for Atlantic Basin exporters supplying Nigeria and other regions, particularly as Nigeria reduces its dependency on imported petroleum products.
According to The Guardian, the exported cargo has a sulfur content of 0.26 percent per weight and a density of 0.918 g/ml at 15°C. The product was reportedly sold at an $8.50 per ton discount to the NWE 0.5 percent benchmark, on a Free on Board (FOB) basis.
This development is expected to challenge traditional fuel oil suppliers in Africa and Europe. Nigeria’s reduced clean petroleum product (CPP) imports are already leading to decreased demand for imports across the broader West African region. As domestic refining improves, Nigeria is positioning itself to play a more prominent role in the global petroleum market.
A New Era for NNPC
This sale highlights the progress of NNPC’s efforts to revamp Nigeria’s downstream petroleum sector. The Port Harcourt Refinery, after undergoing significant upgrades, is now contributing to the nation’s goal of reducing reliance on imported fuels while boosting exports.
Despite the significance of this milestone, there has been no official confirmation from NNPC’s spokesperson, Olufemi Soneye, as of the time of this report. However, the successful export underscores the potential of Nigerian refineries to meet both domestic and international demand.
Future Prospects
The development represents a strategic shift for Nigeria’s petroleum industry. By leveraging its refining capabilities, the country aims to reduce foreign dependency, improve trade balances, and strengthen its position in the global energy market. If sustained, these efforts could lead to increased revenue streams and greater self-sufficiency in the long term.
This export marks not only the revitalization of the Port Harcourt Refinery but also a broader transformation of Nigeria’s oil and gas sector under NNPC’s renewed strategy.
