The Nigerian National Petroleum Company Limited (NNPC) has significantly enhanced its global footprint by launching Liquefied Natural Gas (LNG) shipments to Japan and China.
This achievement, marking a pivotal moment for NNPC, showcases the company’s commitment to expanding its reach in the international energy landscape through Delivered Ex-Ship (DES) transactions, which involve shipping and insurance responsibilities undertaken by the seller until the cargo reaches the designated port.
NNPC’s Chief Corporate Communications Officer noted the complexities and skills necessary for executing DES transactions. The first successful LNG cargo delivery under this system occurred on June 27, 2024, with the 174,000m³ LNG vessel Grazyna Gesicka arriving at Futtsu, Japan. This success was made possible by the joint effort of NNPC’s subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd, who subsequently extended their operations to China.
Since entering the LNG trading arena in 2021, NNPC has traded over 20 cargoes into European and Asian markets on a Free on Board (FOB) basis. The Executive President of NNPC’s Downstream Division emphasized the financial and strategic benefits of the DES system, which not only bolsters NNPC’s market presence but also enhances its operational capacity.
The cooperation between NNPC LNG Ltd and NNPC Shipping Ltd has solidified the company’s standing in the LNG market, while NNPC Shipping is poised to expand its offerings with a robust shipping portfolio. Anticipating growth, the Managing Director of NNPC Shipping Ltd announced plans to deliver at least two additional LNG cargoes to the Asian market via the DES system by November 2024, paving the way for further contracts through the rest of the year.
