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 confirmed by Mr. Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., in a statement quoting Mr. Segun Dapo, the Executive Vice President, Downstream at NNPC Ltd.
Dapo highlighted that this move aligns with NNPC Ltd.’s strategic goal of becoming a reliable global energy provider.
He noted that the DES system not only proves more financially beneficial but also allows NNPC Ltd. to penetrate the downstream sector of the LNG market.
Delivered Ex-Ship (DES) is an international trade term requiring the seller to deliver goods to a specified port, assuming responsibility for shipping and insurance until arrival.
This approach demands greater expertise and efficiency compared to the Free on Board (FOB) system.
The milestone was achieved through collaboration between NNPC LNG Ltd. and NNPC Shipping Ltd., with the first DES LNG cargo delivered from the 174,000m³ vessel Grazyna Gesicka to Futtsu, Japan, on June 27, 2024. Since then, NNPC Ltd. has extended its market presence to China with another DES LNG cargo delivery.
NNPC Ltd. has been trading LNG since 2021, initially on an FOB basis, and has since completed over 20 cargo trades in European and Asian markets.
This new strategy is expected to strengthen NNPC Ltd.’s market position, build in-house capacity, and enhance global recognition of its brand.
The Managing Director of NNPC Shipping, Mr. Panos Gliatis, added that NNPC Shipping aims to develop a robust shipping portfolio, including owned vessels, to provide comprehensive shipping solutions for NNPC Ltd. and other clients.
Further, NNPC LNG Ltd., in collaboration with NNPC Shipping Ltd., plans to deliver at least two more LNG cargoes to the Asian market on a DES basis by November, with additional orders anticipated by the end of the year.
Nigeria, Africa’s biggest oil producer, holds the continent’s largest gas reserves at more than 200 trillion cubic feet and has often shipped most of its LNG through Nigeria LNG, in which the NNPC has a 49% stake.
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