The Nigerian National Petroleum Company Limited (NNPC Ltd.) has initiated the shipment of Liquefied Natural Gas (LNG) cargoes to Japan and China on a Delivered Ex-Ship (DES) basis. This development aligns with the company’s strategic goal to establish itself as a reliable global energy supplier.
Olufemi Soneye, Chief Corporate Communications Officer at NNPC Ltd., reported that Segun Dapo, Executive President, Downstream at NNPC Ltd., emphasized that this move supports the company’s vision of expanding its presence in the global energy market. The DES system, which requires the seller to deliver the product at a designated port and handle shipping and insurance until delivery, offers financial benefits and entry into the downstream LNG sector.
NNPC Ltd. achieved this milestone through collaboration with its subsidiaries, NNPC LNG Ltd. and NNPC Shipping Ltd. The company successfully delivered its first DES LNG cargo from the vessel Grazyna Gesicka to Futtsu, Japan, on June 27, 2024. Following this, it extended its reach to China with additional LNG deliveries.
Since starting LNG trading in 2021, NNPC Ltd. has sold over 20 cargoes to European and Asian markets. The move to DES trading aims to increase market share and enhance the NNPC Ltd. brand’s global recognition.
Panos Gliatis, Managing Director of NNPC Shipping, revealed plans to build a comprehensive shipping portfolio to provide necessary flexibility for NNPC Ltd. and its clients. NNPC LNG Ltd. and NNPC Shipping Ltd. are set to deliver at least two more LNG cargoes to the Asian market by November 2024, with more orders anticipated before the year ends.