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Oil Markets

Naphtha flow from Africa's Dangote refinery boosting product tankers

May 24, 2024
Pradeep Rajan, Asia Freight's associate editorial director, delves into the impact of West African naphtha flow from Dangote refinery on the clean tanker market, discussing ton-mile demand, pricing competitiveness, and product tanker supply dynamics.
16:54

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Exporting naphtha from Dangote refinery boosts ton-mile demand in clean tanker sector.
  • Dangote's naphtha supply alters market dynamics, potentially easing clean tanker supply from Persian Gulf.

Deep dives

Impact of Dangkonda Refinery on Green Tanker Markets

The new Dangkonda refinery in Nigeria is set to export clean petroleum products, specifically naphtha, to the Far East and Europe. Market participants anticipate around 2-3 long-range shipments of naphtha each month initially, increasing to four shipments when the refinery is fully operational. The introduction of naphtha from Dangkonda is expected to impact the market by providing additional supply, potentially leading to competitive pricing. Companies like Trafigura and Vitol are involved in marketing these naphtha cargoes.

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