Low Sulfur Fuel Oil Export to Dubai
The newly refurbished Port Harcourt Refinery has officially commenced exporting refined petroleum products, marking a pivotal moment in Nigeria’s energy sector. Kpler, a leading data analysis firm, reported that the Port Harcourt refinery sold its first shipment of low sulfur straight-run fuel oil (LSSR) to Dubai-based Gulf Transport and Trading Limited.This milestone underscores the refinery’s re-entry into the global market, following extensive upgrades.
Current Operations and Capacity
The refinery began operating its Coolant Distribution Unit 1 earlier this week, processing an estimated 20,000 barrels per day (bpd). This is part of the refinery’s gradual startup phase, with its 60,000 bpd section currently running at 70% capacity. The Port Harcourt refinery plans to load 15,000 metric tonnes of LSSR onto the *Wonder Star MR1* vessel in the coming days.
Impact on Regional Oil Trade
Kpler highlighted that this development could reshape the dynamics of clean product imports into Nigeria and the broader West African region. With decreasing imports from traditional suppliers in Europe and Africa, the refinery’s operationalisation is expected to stabilise regional supply chains.
Projected Production and Expansion Plans
The current production of LSSR is forecasted to reach 60,000 metric tonnes monthly in the near term. While the larger 150,000 bpd section remains offline, plans are underway for its activation after the first phase achieves stability. Once fully operational, the refinery aims to ramp up to a total capacity of 210,000 bpd by 2026, which would significantly reduce Nigeria’s dependence on fuel imports.
Contribution to Domestic and Export Markets
The refinery’s output is expected to meet domestic fuel demands and contribute to exports, particularly for fuel oil. By 2025, production forecasts indicate substantial volumes of gasoline, diesel, and jet fuel alongside LPG. This aligns with Nigeria’s strategy to achieve energy self-sufficiency and boost export revenues.
National Implications and Challenges
NNPC has confirmed the commencement of crude processing and product distribution. However, with operations still in the test phase, challenges remain, including the full ramp-up of capacity and integration with other domestic refineries like Dangote’s. Analysts believe this development is a step towards balancing West African gasoline supply and reducing reliance on imports.
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