As part of its strategic vision to become a dynamic and reliable global energy supplier, the Nigerian National Petroleum Company Limited (NNPC Ltd) has commenced the shipment of Liquefied Natural Gas (LNG) cargoes to Japan and China on a Delivered Ex-Ship (DES) basis.
This development was announced in a statement by NNPC Ltd’s spokesperson, Olufemi Soneye, on Monday. Soneye revealed that this milestone resulted from a successful collaboration between NNPC Ltd’s downstream subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd. The first DES LNG cargo was delivered from the 174,000m³ LNG vessel, Grazyna Gesicka, to Futtsu, Japan, on June 27, 2024.
Following this, NNPC Ltd expanded its operations to China with the delivery of another LNG cargo on a DES basis. Soneye explained that the DES system, which requires the seller to deliver the products to a specified port and assume responsibility for shipping and insurance, demands a higher level of expertise and efficiency compared to the Free on Board (FOB) system.
NNPC Ltd has been involved in LNG trading since 2021, with its first LNG cargo sale in November of that year. Since then, it has traded over 20 cargoes into the European and Asian markets on an FOB basis.
The statement also quoted NNPC Ltd’s Executive President of Downstream, Dapo Segun, who emphasized the financial benefits of the DES system. He noted that it allows NNPC Ltd to gain a foothold in the downstream segment of the LNG sector, capture more market share, and enhance its brand recognition globally.
The collaboration between NNPC LNG Ltd and NNPC Shipping Ltd in executing these DES LNG shipments has bolstered NNPC Shipping Ltd’s status as a world-class shipping provider in the LNG sector. The statement also included remarks from Panos Gliatis, Managing Director of NNPC Shipping, who outlined plans to build a shipping portfolio that includes owned vessels to meet the shipping needs of NNPC Ltd and other clients.
According to Soneye, NNPC LNG Ltd, in partnership with NNPC Shipping Ltd, is scheduled to deliver at least two more LNG cargoes to the Asian market on a DES basis by November, with many more orders expected before the end of the year.
