The Nigerian National Petroleum Company Limited (NNPC) has expanded its global market reach with the delivery of liquefied natural gas (LNG) cargoes to Japan and China on a Delivered Ex-Ship (DES) basis.
Olufemi Soneye, NNPC’s chief corporate communications officer, announced this on Monday in a statement released on the oil company’s X platform.
“NNPC achieved this milestone through a collaboration between two of its subsidiaries, NNPC LNG Ltd. and NNPC Shipping Ltd., which facilitated the first DES LNG cargo delivery to Futtsu, Japan, on 27 June 2024,” the statement read.
Soneye noted that the shipment was made using the 174,000 cubic metre vessel, Grazyna Gesicka, and the NNPC has since extended its operations to China, delivering another LNG cargo under the same arrangement.
The DES system, an international trade term, places the responsibility for shipping and insurance on the seller until the product reaches its destination.
This method is considered more complex and financially rewarding compared to the Free on Board (FOB) system, which NNPC has used in the past.
Soneye also noted that NNPC began LNG trading in 2021 and has since sold over 20 LNG cargoes, mainly to European and Asian markets on a FOB basis.
Dapo Segun, NNPC’s executive vice president for downstream operations, highlighted the significance of the development, stating, “The DES system is more financially rewarding and positions NNPC to capture more market share while building capacity and ensuring our global customers are familiar with the NNPC brand.”
The collaboration between NNPC LNG Ltd. and NNPC Shipping Ltd. in executing the LNG supplies on a 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,” Panos Gliatis, managing director of NNPC shipping, enthused.
