NNPC Ltd Commences Shipment Of LNG Cargoes To Asia

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced that it has begun shipment of Liquefied Natural Gas (LNG) cargoes to China and Japan.

This much was revealed by the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye, in a statement on Monday.

He noted that the shipments are on a Delivered Ex-Ship (DES) basis.

Soneye noted that the feat was made possible through the collaboration of country’s two downstream subsidiaries – NNPC LNG Ltd. and NNPC Shipping Ltd.

According to him, the NNPC Shipping Ltd. delivered its first DES LNG cargo from the 174,000m³ LNG vessel, Grazyna Gesicka at Futtsu, Japan, on 27th June 2024.

He revealed that the two subsidiaries are billed to deliver at least two more LNG cargoes to the Asian market by November.

More orders, the company revealed, are expected before the end of year.

“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.

“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 27th June 2024.

“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 the products/goods at a specific port. The seller takes responsibility for the shipping and insurance for the products/goods until they get to the specified port of delivery. It requires expertise and a higher level of efficiency to execute than the Free on Board (FOB) system.

“NNPC Ltd. has been involved in LNG trading since 2021 with its first LNG cargo sale in November of that year. It has since traded over 20 cargoes into the European and Asian markets on FOB basis,” the statement read in part.

The Executive Vice President, Downstream, Mr. Dapo Segun, went further to explain that the NNPC Shipping intends to build a shipping portfolio in order to avail its sister company and other clients the necessary shipping flexibilities needed.

“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 collaboration between NNPC LNG Ltd. and NNPC Shipping Ltd. in executing the LNG supplies on DES basis has strengthened the latter’s position as a world class shipping provider in the LNG sector.

“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 flexibilities they need,” Managing Director of NNPC Shipping, Panos Gliatis, enthused,” Segun said.