NNPC Expands LNG Exports to Asia with New Shipments to Japan and China
The Nigerian National Petroleum Company Limited (NNPC) has begun shipping Liquefied Natural Gas (LNG) cargoes to Japan and China on a Delivered Ex-Ship (DES) basis, marking a significant expansion into the Asian energy market.
According to a statement released on Monday by NNPC spokesperson Olufemi Soneye, the milestone was achieved through the collaboration of two of NNPC’s downstream subsidiaries—NNPC LNG Ltd and NNPC Shipping Ltd. The first DES LNG cargo, transported by the 174,000m³ LNG vessel Grazyna Gesicka, was delivered to Futtsu, Japan, on June 27, 2024. “Since then, it has expanded its footprint to China with the delivery of one LNG cargo on DES basis,” Soneye said.
The Delivered Ex-Ship system requires the seller to deliver goods to a specified port, taking full responsibility for shipping and insurance until the cargo reaches its destination. This approach demands greater expertise and efficiency compared to the Free on Board (FOB) system, where the buyer assumes responsibility for the shipment once it leaves the seller’s dock.
NNPC has been active in LNG trading since 2021, with its first cargo sale occurring in November of that year. Since then, the company has traded over 20 cargoes into the European and Asian markets on an FOB basis. The shift to DES not only promises greater financial returns but also allows NNPC to gain a foothold in the downstream segment of the LNG sector, according to Mr. Dapo Segun, Executive President of Downstream.
“The DES system, apart from being more financially rewarding, allows NNPC Ltd inroads into the downstream segment of the LNG sector,” Segun stated. “It positions NNPC to capture more market shares while building in-house capacity and ensuring that global customers are familiar with the NNPC Ltd brand.”
The collaboration between NNPC LNG Ltd and NNPC Shipping Ltd has bolstered NNPC Shipping’s status as a world-class 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 with all the shipping flexibility they need,” explained Panos Gliatis, Managing Director of NNPC Shipping.
NNPC LNG Ltd, in partnership with NNPC Shipping Ltd, plans to deliver at least two more LNG cargoes to the Asian market on a DES basis by November. The national oil firm anticipates many more orders before the year’s end, reinforcing its strategy to become a dynamic and reliable global energy supplier of choice.
