Dangote Refinery makes Asian debut, sends inaugural low-sulfur oil shipment to Singapore.
Dangote Refinery, one of Africa’s largest, is expanding its global reach by entering the Asian market with its shipment of low-sulfur straight-run fuel oil (LSSR) to Singapore this week. This marks a significant milestone for the refinery, which commenced operations earlier this year following a $20 billion investment. With a daily processing capacity of up to 650,000 barrels, Dangote Refinery aims to become a key player in the refining sector across Africa and Europe.
Since March, Dangote has been exporting LSSR primarily to the Americas and Europe, but this latest shipment opens up a new trade route to Asia. The Glencore-chartered vessel, Front Brage, is scheduled to deliver approximately 124,000 metric tons (787,400 barrels) of LSSR to Singapore, arriving this Wednesday.
The decision to redirect cargo to Asia reflects market dynamics, including weaker demand in Europe and favorable pricing spreads. Dangote’s LSSR cargoes are priced against Rotterdam’s 0.5 percent LSFO quotes, with specific details on pricing differentials not disclosed publicly. Another shipment of around 157,000 tons is expected to reach Singapore in July aboard the vessel Stena Suede.
LSSR is crucial for producing low-sulfur fuel oil (LSFO), widely used in bunkering operations and as feedstock in refineries. Dangote’s move into the Asian market underscores its strategic approach to global energy trade and positioning within the competitive landscape of oil refining and distribution.
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