Dangote ramp up and more

Dangote is a Nigerian refinery project. Since Nigeria is an oil producing country, I figured all of the crude oil input would come internally from Nigeria. Management from tanker company Frontline (FRO) had indicated some US runs had been involved as inputs. That was a bit of a surprise.

So here is more news on Dangote implications. One big one
“Volume wise, over 60% of all Nigerian gasoline imports over the past two years have been carried on LR2s and LR1s. Faced with reduced trading opportunities West, this will inevitably increase Middle East LR availability.”

Dangote will assist with more gasoil, diesel and jet fuel products. And closer to Europe. Lastly, when Dangote is fully operational, new routes for clean and dirty product cargos will emerge.

I should also add - “and more” for this case, also includes my primary reason for skimming Gibson’s report. The tables at the end of the report provide data on bunker rates and major trade routes. That can provide a snapshot on which tanker size is doing well, or is in demand. All categories are at healthy rates but particularly the Aframax/LR2 and MR2 categories.

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US Gulf/Latin America

It has been a challenging week for Owners here as US exports seem to have declined and rates continue on their downward trajectory. We have also seen a plethora of ships being failed which always hits Owners confidence and we enter the weekend in a bearish mood. Brazil exports remained steady while rates have followed the pattern in WAF with Charterers able to fix below last done.

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This belongs in two places here.

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