NNPCL starts shipping LNG to China and Japan

State-owned oil company, Nigerian National Petroleum Company Limited (NNPCL) has commenced shipment of Liquefied Natural Gas (LNG) cargoes to Japan and China on a Delivered Ex-Ship (DES) basis.

This was made possible through the collaboration of its two Downstream subsidiaries – NNPC LNG Ltd and NNPC Shipping Ltd.

Under this agreement, the DES LNG cargo from the 174,000 m³ LNG vessel was delivered to Grazyna Gesicka in Futtsu, Japan, on June 27, 2024.

The development was announced in a statement on Monday by company spokesperson Olufemi Soneye.

He explained that since then, the company has expanded its footprint into China with the shipment of one LNG cargo under DES.

“Delivered Ex-Ship (DES) is an international commercial term that requires the seller to deliver the product/goods at a specific port.

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“The seller is responsible for shipping and insurance of the product/goods until they arrive at the destination port. This requires a higher level of expertise and efficiency to implement compared to the Free on Board (FOB) system,” said Soneye.

The spokesperson said the company has been involved in LNG trading since 2021 with the sale of its first LNG cargo in November that year. Since then, the company has traded more than 20 cargoes to European and Asian markets on an FOB basis.

He said NNPC LNG Ltd, in partnership with NNPC Shipping Ltd, is scheduled to ship at least two more LNG cargoes to the Asian market under DES in November. More orders are expected before the end of the year.

Executive Vice President Downstream, Dapo Segun, said, “The DES system, in addition to being more financially rewarding, enables NNPC Ltd. to penetrate the downstream segment of the LNG sector and positions it to capture more market share while building internal capacity and ensuring that global customers are familiar with the NNPC Ltd. brand.

“NNPC Shipping intends to build a shipping portfolio (including its own vessels) so that we can provide all the shipping flexibility that our sister companies and other clients require,” said NNPC Shipping Managing Director, Panos Gliatis, enthusiastically.

By Babajide Okeowo

NNPCL starts LNG shipments to China, Japan first appeared on Latest Nigerian News | Headlines from Ripples Nigeria.