The commencement of Liquefied Natural Gas shipments to Japan and China on a Delivered Ex-Ship basis by the Nigerian National Petroleum Company Limited signals a significant move in line with its strategic vision of becoming a dynamic and reliable global energy supplier of choice.
According to Olufemi Soneye, the company’s spokesperson, NNPC achieved this milestone through the collaboration of two of its downstream subsidiaries, specifically NNPC LNG Ltd and NNPC Shipping Ltd. The first DES LNG cargo was delivered by the LNG vessel Grazyna Gesicka to Futtsu, Japan, on June 27, 2024.
Since then, NNPC has expanded its operations to China with the delivery of an additional LNG cargo on a DES basis. Delivered Ex-Ship is an international commercial term that involves the seller delivering the goods at a specific port and taking responsibility for shipping and insurance until reaching the designated port of delivery.
NNPC Ltd has been engaged in LNG trading since 2021, with its first LNG cargo sale in November of that year. The company has traded over 20 cargoes into the European and Asian markets on an FOB basis.
Discussing the significance of this development, Mr. Dapo Segun, the Executive President of Downstream, highlighted that the DES system is not only more financially rewarding but also provides NNPC Ltd with opportunities to explore the downstream segment of the LNG sector, thus enabling the company to capture more market share while enhancing its brand recognition.
The collaboration between NNPC LNG Ltd and NNPC Shipping Ltd in executing LNG supplies on a DES basis has further solidified the latter’s position as a world-class shipping provider in the LNG sector. Panos Gliatis, Managing Director of NNPC Shipping, emphasized the company’s intention to expand its shipping portfolio to offer increased flexibility to its clients.
NNPC LNG Ltd, in conjunction 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 before the end of the year.
Okechukwu, a journalist with NewsNows, brings 15 years of experience covering various sectors including Energy, Finance, Agriculture, Environment, Humanitarian Services, Works and Housing, Trade and Investment, Capital Markets, Aviation and Transport, and ICT.