Nigeria cuts fuel sulphur cap, but still well over target- sources

By Libby George
LONDON, May 30 (Reuters) - Nigeria will cut the level of
sulphur allowed in imported fuels this year, according to oil
trading sources, but the cap is still 10 times above what health
campaigners urge.
In oil-for-product exchange contracts, state oil company
NNPC has asked for diesel and gasoline at a maximum of 500 ppm
sulphur, trade sources said.
NNPC last year outlined a plan to gradually cut the allowed
sulphur to 50 ppm for diesel and 150 ppm for gasoline by the end
of 2019, from 3,000 ppm and 1,500 ppm, respectively. [https://reut.rs/2QyA3Y7
]
Some 40 companies have been shortlisted for the contracts,
dubbed direct sale, direct purchase (DSDP), and have until the
end of the day on Thursday to submit their pricing to supply the
fuels, the trade sources said. The contracts are expected to
begin in late August or September. NNPC did not respond to a request for comment.
Nigeria relies almost entirely on imported fuels due to
limited and poorly maintained refineries. The country also caps
prices for gasoline, which means the government would pay
directly if it mandates higher-quality fuel. The United Nations Environment Programme and health
campaigners have pressed West African nations to ban fuels above
50 ppm due to evidence of significant health problems associated
with the emissions. The health impacts are particularly acute in
dense urban areas such as Lagos. [https://reut.rs/2JP6NMb
]
Thus far only Ghana has made good on the pledge to cut the
imported sulphur cap to 50 ppm.
Experts said Nigeria's new limits would change little, as
few global refineries produce gasoline or diesel above 500 ppm.
"Given the relatively low sulphur content of gasoline
currently imported, the new sulphur limit will not have a marked
effect – either on quality or price," said Jeremy Parker, the
head of business development with Africa-focused consultancy
Citac.