Dangote Refinery Fuel to Boost Singapore Maritime Industry
Singapore which is reportedly the largest bunker hub globally, will soon receive a shipment of low-sulfur straight-run fuel oil (LSSR) from Dangote refinery.
Ship tracking data and market sources revealed the deal which would make the first time the refinery broke into the Asian market.
This shipment initiates a fresh trade route from the recently opened refinery to Asia, which consistently lacks the low-sulfur fuel oil needed for refuelling ships at Singapore, the largest bunker hub globally.
The Dangote refinery, which began operations in January after a $20 billion investment, can process up to 650,000 barrels of products per day. Once it reaches full capacity, it will be the largest refinery in Africa and Europe.
Since March, the Dangote refinery has increased its LSSR exports, predominantly sending cargo to the Americas and Europe, as reported by ship tracking data from Kpler and Vortexa.
The first shipment bound for Asia is due to arrive on Wednesday. The Glencore-chartered vessel, Front Brage, will deliver approximately 124,000 metric tons (787,400 barrels) of LSSR to Singapore.
Sources suggest that the 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 per cent LSFO, reflecting the price difference between these regions, stayed above $40 per ton this week.
Dangote’s LSSR cargoes are priced against Rotterdam’s 0.5 per cent LSFO quotes on a free-on-board basis, although the specific pricing differential for this shipment was not disclosed by market sources.
Another LSSR shipment from the Dangote refinery, containing around 157,000 tons, is expected to reach Singapore in July aboard the vessel Stena Suede, based on ship tracking data.
The LSSR is generally mixed with other fuels to create low-sulfur fuel oil (LSFO) for bunkering or used as feedstock in various refinery processes.
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