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The Nigerian National Petroleum Company Limited (NNPCL) has set its sights on the lucrative Asian energy market, launching a pioneering Liquefied Natural Gas (LNG) export program.
Under the Delivered Ex-Ship (DES) framework, NNPCL is now shipping LNG cargoes to Japan and China, signaling a major expansion of Nigeria’s energy export portfolio.
Olufemi Soneye, a spokesman for the Nigerian National Petroleum Company Limited, announced on Monday that the company has reached a significant milestone.
He credited the achievement to the collaboration between two of its subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd, which worked together to deliver the company’s first DES LNG cargo. The shipment was carried on the 174,000m³ LNG vessel Grazyna Gesicka, which docked at Futtsu, Japan, on June 27, 2024.
Building on its initial success, the Nigerian National Petroleum Company Limited has further expanded its reach, delivering an additional Liquefied Natural Gas (LNG) cargo to China on a Delivered Ex-Ship (DES) basis.
“Delivered Ex-Ship (DES) is an international commercial term that requires the seller to deliver the products/goods at a specific port.
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“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,” Soneye said.
As the spokesman noted, the Nigerian National Petroleum Company Limited has been a player in the LNG trading space since 2021, when it completed its first cargo sale in November. The company has since expanded its reach, trading over 20 cargoes in European and Asian markets on an FOB basis.
According to the spokesman, NNPC LNG Ltd and NNPC Shipping Ltd are set to continue their successful collaboration, with at least two more LNG cargoes slated for delivery to the Asian market on a DES basis by November. The company is also optimistic about securing additional orders in the remaining months of the year.
The Executive Vice President, of Downstream, Dapo Segun, said, “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.”
“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.
