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 is part of NNPC Ltd’s strategic vision to position itself as a dynamic and reliable global energy supplier of choice.
Olufemi Soneye, the Chief Corporate Communications Officer of NNPC Ltd, stated in a press release, “In line with its strategic vision to be a dynamic and reliable global energy supplier of choice, the Nigerian National Petroleum Company Limited (NNPC Ltd) has commenced shipment of Liquefied Natural Gas (LNG) cargoes to Japan and China on Delivered Ex-Ship (DES) basis.”
According to PulseNets, this achievement was made possible through the collaboration between two of NNPC’s downstream subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd. Soneye explained, “NNPC Ltd achieved the milestone through the collaboration of two of its downstream subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd, which delivered its first DES LNG cargo from the 174,000m³ LNG vessel, Grazyna Gesicka at Futtsu, Japan, on 27 June. Since then, it has expanded its footprint to China with the delivery of one LNG cargo on DES basis.”
Delivered Ex-Ship (DES) is an international commercial term that requires the seller to deliver goods to a specified port, taking responsibility for shipping and insurance until the goods reach the designated port. This method, as noted by PulseNets, requires a higher level of expertise and efficiency than the Free on Board (FOB) system.
NNPC Ltd, as reported by PulseNets, has been involved in LNG trading since 2021, with its first LNG cargo sale occurring in November of that year. Since then, the company has traded over 20 cargoes into European and Asian markets on an FOB basis.
Dapo Segun, Executive Vice President, Downstream, highlighted the significance of this development, stating, “The DES system, apart from being more financially rewarding, allows NNPC Ltd inroads into the downstream segment of the LNG sector and positions it to capture more market shares while building in-house capacity and ensuring that global customers are familiar with the NNPC Ltd brand.”
The statement also emphasized that the collaboration between NNPC LNG Ltd and NNPC Shipping Ltd in executing these DES-based LNG supplies has bolstered NNPC Shipping’s status as a world-class provider in the LNG sector.
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Panos Gliatis, Managing Director of NNPC Shipping, echoed this sentiment in his conversation with PulseNets, saying, “NNPC Shipping intends to build a shipping portfolio (including owned vessels) so that we can provide our sister company and other clients all the shipping flexibility they need.”
Looking ahead, the statement noted that “NNPC LNG Ltd., in collaboration with NNPC Shipping Ltd, is scheduled to deliver at least two more LNG cargoes to the Asian market on DES basis by November. More orders are expected before the end of year,” as reported by PulseNets.
