The Nigerian National Petroleum Company Limited has recently broadened its reach in the global market by initiating Liquefied Natural Gas shipments to Japan and China. These shipments, conducted on a Delivered Ex-Ship basis, signify a significant step for the company’s expansion into the international energy market.
The NNPC Chief Corporate Communications Officer, Olufemi Soneye, emphasized the importance of this milestone, highlighting the intricacy and expertise required to carry out DES transactions. DES involves the seller delivering goods to a specified port, handling shipping and insurance responsibilities until the products reach the designated port. This method demands a higher level of proficiency compared to the Free on Board (FOB) system.
The first successful DES LNG cargo delivery by NNPC Ltd occurred on June 27, 2024, when the LNG vessel Grazyna Gesicka arrived in Futtsu, Japan. This achievement was made possible through the collaboration of NNPC LNG Ltd and NNPC Shipping Ltd. Subsequently, NNPC Ltd extended its operations to China, delivering another LNG cargo on a DES basis.
NNPC Ltd has been actively engaged in LNG trading since 2021, with the company’s reach expanding to European and Asian markets through over 20 FOB-based cargo trades. The financial and strategic benefits of the DES system were underscored by the Executive President of NNPC Ltd’s Downstream Division, Mr. Dapo Segun, who highlighted its advantages in capturing market shares and enhancing the company’s brand recognition.
The partnership between NNPC LNG Ltd and NNPC Shipping Ltd has not only bolstered NNPC’s presence in the LNG sector but has also solidified NNPC Shipping Limited’s reputation as a top-tier shipping service provider. Managing Director of NNPC Shipping Ltd, Panos Gliatis, expressed optimism for the company’s future plans to expand its shipping capabilities and support its clients effectively.
Looking ahead, NNPC LNG Ltd, in collaboration with NNPC Shipping Ltd, is set to deliver at least two more LNG cargoes to the Asian market on a DES basis by November 2024, with expectations of further orders by the end of the year.