The Nigerian National Petroleum Company Limited (NNPC) has started exporting Liquefied Natural Gas (LNG) to Japan and China. The shipments, made on a Delivered Ex-Ship (DES) basis, align with NNPC’s strategy to be a reliable global energy supplier.
NNPC’s spokesperson, Olufemi Soneye, highlighted the significance of this milestone, stating, “This achievement demonstrates NNPC’s commitment to being a dynamic and reliable global energy supplier of choice.”
He further noted that the first DES LNG cargo was delivered to Japan on June 27, 2024, via the vessel Grazyna Gesicka. “Since then, it has expanded its footprint to China with the delivery of one LNG cargo on DES basis,” Soneye added.
This development marks NNPC’s continued growth in the LNG sector, having started LNG trading in 2021. The shift to DES transactions, which requires sellers to handle shipping and insurance, positions NNPC to capture more market share and build in-house capacity.
Speaking on the financial and strategic benefits of the DES system, the Executive President, Downstream, Mr. Dapo Segun, remarked, “The DES system, apart from being more financially rewarding, allows NNPC Ltd inroads into the downstream segment of the LNG sector. 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.”
NNPC Shipping Ltd, in collaboration with NNPC LNG Ltd, is scheduled to deliver more LNG cargoes to Asia by November 2024, further solidifying its role as a global energy player. “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 flexibility they need,” said Panos Gliatis, Managing Director of NNPC Shipping.
