NNPC Ltd expands global market presence in Japan and China with LNG supply on ex-ship basis

 

In line with its strategic vision to be a dynamic and reliable global energy supplier, the Nigerian National Petroleum Company Limited (NNPC Ltd) has commenced shipping of Liquefied Natural Gas (LNG) cargoes to Japan and China on a Delivery Ex-Ship (DES) basis.

NNPC Ltd achieved this milestone through the collaboration of two of its Downstream subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd, which delivered its first cargo of DES LNG from the 174,000 m³ LNG vessel Grazyna Gesicka in Futtsu, Japan on 27 June 2024.

Since then, it has extended its presence in China with the delivery of a LNG cargo on a DES basis.

Delivered Ex-Ship (DES) is an international trade term that requires the seller to deliver the products/goods to a specified port. The seller assumes responsibility for shipping and insuring the products/goods until they arrive at the specified port of delivery. It requires expertise and a higher level of efficiency to execute than Free on Board (FOB).

NNPC Ltd has been involved in LNG trading since 2021 with its first sale of LNG cargoes in November that year. Since then it has traded over 20 cargoes in the European and Asian markets on FOB basis.

Speaking on the development, Executive Chairman, Downstream, Mr. Dapo Segun, said: “The DES system, in addition to being more financially rewarding, enables NNPC Ltd to enter the downstream segment of the LNG industry and positions it to capture greater market share, while also building in-house capacity and ensuring that global customers are familiar with the NNPC Ltd brand.”

The collaboration between NNPC LNG Ltd and NNPC Shipping Ltd in executing LNG supplies on a DES basis has strengthened the latter’s position as a world-class maritime transportation service provider in the LNG industry.

“NNPC Shipping intends to build a shipping portfolio (including owned vessels) so that we can provide our affiliated company and other customers with all the shipping flexibility they need,” enthused NNPC Shipping General Manager Panos Gliatis.

NNPC LNG Ltd, in partnership with NNPC Shipping Ltd, plans to deliver at least two more LNG cargoes to the Asian market on a DES basis by November. Several more orders are expected before the end of the year.

Olufemi O. Soneye
Corporate Communications Manager
Public limited company
City of Abuja.
August 26, 2024

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