NNPC Ltd Delivers First LNG Cargoes to Japan and China, Strengthening Global Market Presence
The Nigerian National Petroleum Company Limited (NNPC Ltd) has achieved a significant milestone in its strategic vision to become a dynamic and reliable global energy supplier. Recently, NNPC Ltd commenced the shipment of Liquefied Natural Gas (LNG) cargoes to Japan and China on a Delivered Ex-Ship (DES) basis.
This achievement was made possible through the collaboration of two of NNPC’s Downstream subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd. The first DES LNG cargo was successfully delivered from the 174,000m³ LNG vessel, Grazyna Gesicka, at Futtsu, Japan, on June 27, 2024. Following this, NNPC Ltd expanded its footprint to China with the delivery of another LNG cargo on the same DES basis.
Delivered Ex-Ship (DES) is a commercial term requiring the seller to deliver goods at a specified port, covering shipping and insurance responsibilities until the goods reach their destination. This system demands a higher level of expertise and efficiency compared to the Free on Board (FOB) system.
NNPC Ltd has been actively involved in LNG trading since 2021, with its first LNG cargo sale in November of that year. Since then, the company has traded over 20 cargoes into European and Asian markets on an FOB basis.
Commenting on this development, Mr. Dapo Segun, Executive President of NNPC’s Downstream division, stated, “The DES system, apart from being more financially rewarding, allows NNPC Ltd to make inroads into the downstream segment of the LNG sector. It also positions us to capture more market share, build in-house capacity, and ensure that global customers become familiar with the NNPC Ltd brand.”
The collaboration between NNPC LNG Ltd and NNPC Shipping Ltd in executing these LNG supplies on a DES basis has bolstered NNPC Shipping Ltd’s reputation as a world-class provider in the LNG shipping sector. “NNPC Shipping intends to build a shipping portfolio, including owned vessels, to provide our sister company and other clients with all the shipping flexibilities they need,” said Panos Gliatis, Managing Director of NNPC Shipping.
Looking ahead, 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 additional orders expected before the year’s end. This strategic move solidifies NNPC Ltd’s position in the global LNG market, enhancing its capability to meet the growing energy demands of international markets.
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