The Nigerian National Petroleum Company Limited (NNPC Ltd.) has commenced shipment of Liquefied Natural Gas (LNG) cargoes to Japan and China on Delivered Ex-Ship (DES) basis.
NNPC Ltd. achieved the milestone through the collaboration of two of its Downstream subsidiaries – NNPC LNG Ltd. and NNPC Shipping Ltd. – which delivered its first DES LNG cargo from the 174,000m³ LNG vessel, Grazyna Gesicka at Futtsu, Japan, on 27th June 2024.
In a statement released on Monday, the NNPC Chief Corporate Communications Officer, Olufemi Soneye, highlighted the significance of this achievement, noting the complexity and expertise required to execute DES transactions.
“Delivered Ex-Ship (DES) is an international commercial term that requires the seller to deliver the products/goods at a specific port. 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 explained.
“NNPC Ltd has been involved in LNG trading since 2021 with its first LNG cargo sale in November of that year. It has since traded over 20 cargoes into the European and Asian markets on FOB basis,” Soneye added, underscoring the company’s growing influence in the international LNG market.
Looking ahead, Managing Director of NNPC Shipping Ltd, Panos Gliatis Gliatis revealed that NNPC LNG Ltd, in collaboration with NNPC Shipping Ltd, is scheduled to deliver at least two more LNG cargoes to the Asian market on a DES basis by November 2024, with expectations for many more orders before the year’s end.
