NNPCL Expands Global Market Footprint To Asia With LNG Supply On Delivered Ex-Ship Basis

As part of its strategic vision for a dynamic and reliable global energy supplier of choice, the Nigerian National Petroleum Company Limited (NNPC Ltd) has commenced the shipment of Liquefied Natural Gas (LNG) cargoes to Japan and China on Delivered Ex-Ship (DES) basis.

This milestone was achieved through the collaboration of two of the NNPC Ltd downstream subsidiaries namely; the NNPC LNG Ltd and NNPC Shipping Ltd which delivered its first Delivered Ex-Ship (DES) LNG cargo from the 174,000m³ LNG vessel Grazyna Gesicka at Futtsu, Japan, on June 27, 2024.

A statement on Monday, August 26, 2024 by Mr Olufemi Soneye, Chief Corporate Communications Officer (CCCO) of the NNPC Ltd, said that since then, the Corporation has expanded its footprint to China with the delivery of one LNG cargo on DES basis.

Soneye explained that Delivered Ex-Ship (DES) is an international commercial term that requires the seller to deliver the products/goods at a specific port, adding that the seller takes responsibility for the shipping and insurance for the products/goods until they get to the specified port of delivery.

The CCCO further said; “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”.

Speaking on the positive development, the Executive President, Downstream, Mr. Dapo Segun said the DES system, apart from being more financially rewarding, allows the NNPC Ltd inroads into the downstream segment of the LNG sector and positions it to capture more market shares while at the same time building in-house capacity and ensuring that global customers are familiar with the NNPC Ltd brand.

Already, the 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 with many more orders being expected before the end of the year.

This is as the collaboration between the NNPC LNG Ltd and the NNPC Shipping Ltd in executing the LNG supplies on DES basis has strengthened the NN{C LNG Ltd position as a world-class shipping provider in the LNG sector.

In his remarks, Mr Panos Gliatis, Managing Director of NNPC Shipping, said the organization intends to build a shipping portfolio (including owned vessels) so that it can provide its sister company and other clients all the shipping flexibilities they need.