According to market and ship tracking data, Singapore, Asia's main oil hub, is set to receive this week the first cargo of low-sulfur straight-run fuel (LSSR) oil exported from Nigeria's newly built Dangote refinery.

The newly-commissioned refinery will now be able to export low-sulphur fuel to Asia. This region is in structural shortage of the fuel oil needed to refuel ships at Singapore, the largest bunker hub in the world.

The Dangote Refinery, which began production in January after a $20 billion investment, will have the capacity to refine 650,000 barrels of oil per day. It is Africa's and Europe's largest refinery when it reaches its full capacity.

Ship-tracking data by Kpler and Vortexa revealed that the refinery exports more LSSR than ever before, with the majority of cargoes currently landing in America and Europe.

Data showed that the Glencore chartered vessel Front Brage will arrive in Singapore on Wednesday with a cargo of 124,000 metric tonnes (787,400 barrels), or LSSR.

Some sources on the market said that the cargo was shipped to Asia because of a weaker market in Europe. The LSFO east-west 0.5% spread for the front-month, which is the price difference in East versus West, remained over $40 a ton, according to LSEG data.

According to sources in the market, Dangote's LSSR shipments are usually priced at a 0.5% differential from Rotterdam LSFO quotations on a free-onboard basis. However, this differential is not known immediately.

Ship-tracking data revealed that another LSSR cargo of about 157,000 tonnes from Dangote is expected to arrive in Singapore on the vessel Stena Suède in July.

Dangote didn't immediately respond to a Reuters request for comment.

LSSR can be blended with other fuels in order to create LSFO bunker or it can be used as a raw material for refinery processes.

Dangote began issuing tenders for the sale of oil products to export in February. In December of last year it began purchasing crude oil, with Nigerian state-owned oil company NNPC Ltd. as its primary supplier.