The Nigerian National Petroleum Company Limited (NNPC Ltd.) has initiated the shipment of Liquefied Natural Gas (LNG) to Japan and China under the Delivered Ex-Ship (DES) arrangement.
In a statement issued on Monday in Abuja, Mr. Olufemi Soneye, Chief Corporate Communications Officer at NNPC Ltd., quoted Mr. Segun Dapo, Executive President, of Downstream, as highlighting the significance of this development for the company’s global energy strategy.
“This move aligns with our vision to become a reliable global energy supplier,” Dapo said. “The DES system is not only financially advantageous but also provides NNPC Ltd. with a foothold in the downstream LNG sector.”
The Delivered Ex-Ship (DES) term involves the seller delivering goods at a designated port, assuming responsibility for shipping and insurance until the products reach the port. This system demands greater expertise and efficiency compared to the free-on-board (FOB) method.
Dapo also noted that NNPC Ltd. achieved this milestone in partnership with its downstream subsidiaries, NNPC LNG Ltd. and NNPC Shipping Ltd.
The first DES LNG cargo was delivered from the 174,000m³ vessel Grazyna Gesicka to Futtsu, Japan, on June 27, 2024. Since then, NNPC Ltd. has expanded its reach to China with another DES LNG delivery.
Having been involved in LNG trading since 2021, NNPC Ltd. completed its initial cargo sale in November and has since traded over 20 cargoes into European and Asian markets on a FOB basis.
“This strategy will help NNPC Ltd. capture additional market share, enhance our in-house capabilities, and strengthen our global brand,” Dapo added.
Mr Panos Gliatis, Managing Director of NNPC Shipping, emphasized that the company aims to build a comprehensive shipping portfolio, including owned vessels, to offer greater flexibility to clients.
NNPC LNG Ltd. and NNPC Shipping Ltd. plan to deliver at least two more LNG cargoes to the Asian market on a DES basis by November, with additional orders anticipated before the year’s end.
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