Port Harcourt Refinery Sells First Fuel Oil Cargo to Dubai Trader

The Port Harcourt refinery has made its first significant export, selling a Low Sulphur Straight Run Fuel oil (LSSR) cargo to Dubai-based Gulf Transport & Trading Limited (GTT), according to a detailed report by Kpler, a data intelligence company tracking energy markets.

“The LSSR was produced from the 60,000 bpd section of the refurbished Port Harcourt refinery following a November 26 announcement that it began processing crude oil,” the report stated. Kpler noted that the 15 kt cargo was sold at an $8.50/t discount to the NWE 0.5 per cent benchmark on a Free on Board (FOB) basis.

The report highlighted the strategic significance of this initial export: “LSSR production from this train is expected to steady at about 60kt per month over the near term. The larger 150,000 bpd section of the refinery, however, remains offline and will start-up after production from the first phase stabilises.”

This development comes after years of delays and public skepticism surrounding the refinery’s operational capabilities. The Nigerian National Petroleum Company Limited (NNPC) had previously defended allegations of merely blending petrol, with the report noting the broader context of Nigeria’s energy sector transformation.

Kpler provided detailed insights into the refinery’s potential, stating that “While CDU 1 has a nameplate capacity of 60,000 bpd, we estimate the unit to only run around 20,000 bpd for the rest of the year, potentially reaching full capacity in Q3, 2025, contributing to total Nigerian crude runs of 420,000 bpd in September 2025.”

The report projected ambitious production targets: “By Q4, 2025, the plant could supply some 24,000 bpd fuel oil, 15,000 bpd gasoline, 15,000 bpd diesel and 6,000 bpd jet, and some minor volumes of Liquefied Petroleum Gas (LPG).”

Critically, Kpler emphasized the potential market impact: “The full ramp-up of the refinery will further improve West African gasoline balances and weigh on fuel imports to Nigeria, a dynamic that is already at play, with October and November seeing gasoline imports to the country drop to the lowest levels in seven years.”

The company noted the refinery’s unique positioning: “Besides, it projected that the Port Harcourt refinery will run almost entirely on Nigerian crude grades as it is owned by the NNPC, stressing that most of the fuel volumes will be consumed by the domestic market and with only fuel oil output contributing to product exports.”

The export comes amid mounting pressure on NNPC to increase refined fuel production, particularly with the completion of the Dangote refinery. Kpler suggests that “The gradual ramp up of Nigeria’s second refinery will alter the petroleum product landscape in Nigeria and West Africa and will help displace imports from traditional suppliers in the region and Europe.”