The collaboration of two NNPC Ltd. subsidiaries—NNPC LNG Ltd. and NNPC Shipping Ltd.—which successfully delivered their first DES LNG cargo to Japan on June 27, 2024.
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced the commencement of Liquefied Natural Gas (LNG) shipments to Japan and China on a Delivered Ex-Ship (DES) basis. This significant milestone was achieved through the collaboration of two NNPC Ltd. subsidiaries—NNPC LNG Ltd. and NNPC Shipping Ltd.—which successfully delivered their first DES LNG cargo to Japan on June 27, 2024.
Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., confirmed in a statement on Monday that the first DES LNG cargo was transported via the 174,000m³ LNG vessel, Grazyna Gesicka, and delivered to the Futtsu terminal in Japan. NNPC Ltd. is also set to deliver at least two additional LNG cargoes to the Asian market on a DES basis by November 2024, with further orders anticipated before the end of the year.
The statement highlighted NNPC Ltd.’s strategic vision to become a dynamic and reliable global energy supplier, marking its first DES LNG cargo shipment to China following the delivery to Japan. The DES system requires the seller to deliver the goods to a specified port, taking full responsibility for shipping and insurance until the products reach their destination. This method demands a higher level of expertise and operational efficiency compared to the Free on Board (FOB) system.
NNPC Ltd. has been actively trading LNG since 2021, with its inaugural LNG cargo sale taking place in November of that year. Since then, the company has traded over 20 LNG cargoes in the European and Asian markets on an FOB basis.
Executive Vice President of Downstream, Mr. Dapo Segun, expressed that NNPC Shipping aims to build a robust shipping portfolio to offer greater flexibility to its sister companies and other clients. He emphasized that the DES system is not only more financially rewarding but also positions NNPC Ltd. to expand its market share and enhance its brand recognition in the global LNG sector.
Managing Director of NNPC Shipping, Panos Gliatis, added that the collaboration between NNPC LNG Ltd. and NNPC Shipping Ltd. has solidified the latter’s standing as a world-class shipping provider within the LNG industry. He noted that NNPC Shipping intends to further expand its shipping capabilities, including owning vessels, to provide comprehensive shipping solutions to its clients.
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