Dangote Refinery Ships 787,400 Oil Barrels to Singapore, Marking First Asian Shipment

Dangote Refinery in Nigeria is starting to sell oil to Asia by sending its first shipment of low-sulfur fuel oil to Singapore. This marks an important step as the refinery starts to connect with global markets.

This first shipment creates a new trade route from the newly opened refinery to Asia. Singapore, where the oil is going, is a major spot for refueling ships and needs a lot of low-sulfur fuel oil. 

The refinery started in January after spending $20 billion to build it. It can process up to 650,000 barrels of oil products each day. When it is fully up and running, it will be the biggest refinery in both Africa and Europe.

Increasing Oil Exports

Since March, the refinery has been exporting more oil, mainly to the Americas and Europe. However, the latest shipment suggests a new focus on Asia because of changing demands in Europe.

The first shipment to Asia is expected to arrive in Singapore on Wednesday. The ship, called Front Brage, is carrying about 124,000 metric tons (787,400 barrels) of oil. Another shipment is planned for July, showing the refinery’s commitment to supplying oil to Asia.

READ ALSO: Dangote: My Next Project is Steel Production Plant That’ll Supply West Africa

Market trends

The shift to send oil to Asia was driven by lower demand in Europe. Market data shows that prices in Asia are currently more favourable. 

Although the exact price of this shipment wasn’t shared, Dangote’s oil typically follows price levels set in Rotterdam.

The oil from Dangote is used not just for powering ships but also in different refinery processes. This shows how important the refinery’s products are to the oil industry worldwide.