Platts launches low sulfur diesel FOB West Africa assessment Dec 2

Platts, part of S&P Global Commodity Insights, has launched a new daily assessment for low sulfur diesel FOB West Africa (AWFRA00), reflecting material with a maximum of 50 parts per million sulfur content, effective Dec. 2.

Platts observed that the Dangote refinery in Nigeria began exporting 50 ppm sulfur diesel in September, while Nigeria progressively lowered its gasoil/diesel import sulfur specification from a maximum of 3,000 ppm to 200 ppm in March and then to 50 ppm in June. This adds to the demand for low sulfur diesel in West Africa, with Ghana already an importer of maximum 50 ppm sulfur diesel.

In addition, traditional gasoil/diesel export hubs to West Africa in Belgium and the Netherlands have both banned the export of fuels with a sulfur content higher than 50 ppm outside the EU.

The new assessment reflects the value of cargoes, typically 20,000 to 40,000 mt each, based on fixtures observed for loading 3-10 days forward from the date of publication, with values normalized to reflect the mean of the loading period. Cargoes loading from safe ports in West Africa, including but not limited to Lekki, Nigeria, or loading on a ship-to-ship basis at STS locations such as Lagos, Nigeria, and Lome, Togo, are considered for inclusion in the assessments. Platts may also consider cargoes smaller than 20,000 mt on an STS basis, normalized back to the basis quantity.

The assessment reflects cargoes meeting a maximum of 50 ppm sulfur and a minimum flash point of 66 degrees Celsius. Platts may also take into account indications for other merchantable diesel grades appropriate for West African supply and normalize them back to the reference specification.

Platts continues to publish its established gasoil FOB STS Lome West Africa Cargo assessment (AGNWD00), which reflects higher sulfur material of 5,000-10,000 mt parcels with a maximum of 3,000 ppm sulfur content for STS loading offshore Lome. More details of the methodology can be found at europe-africa-refined-products-methodology.pdf.

The new low sulfur diesel assessment can be found in European Marketscan as well as on Platts Global Alert and Platts Refined Products Alert fixed page 1122.

The new assessment is published on an outright basis in $/mt, time-stamped at 1630 London time.

Platts continues to monitor evolving West African oil product flows and seeks industry feedback on its existing West African refined oil products assessment methodology.

Please send any feedback, questions or comments to europe_products@spglobal.com and pricegroup@spglobal.com.

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