In a move to become a preferred global energy supplier, the Nigerian National Petroleum Company Limited (NNPC Ltd.) has commenced shipments of Liquefied Natural Gas (LNG) to Japan and China.
The agreements which is on a Delivered Ex-Ship (DES) basis, emphasises Nigeria’s commitment to leveraging its vast natural gas resources for economic growth and energy security.
Spokesman of the national oil company, Olufemi Soneye, in a statement, explained that Delivered Ex-Ship (DES) is an international commercial term that requires the seller to deliver the products/goods at a specific port.
He said the new initiative will is a 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, and has extended delivery of one LNG cargo on DES basis.
The seller, according to the statement, takes responsibility for the shipping and insurance for the products/goods until they get to the specified port of delivery.
The press statement further states that 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.
Speaking on the development, the executive vice president, Downstream, Dapo Segun, said the DES system, apart from being more financially rewarding, will allow NNPC Ltd inroads into the downstream segment of the LNG sector and positions it to capture more market shares.
The collaboration between NNPC LNG Ltd and NNPC Shipping Ltd in executing the LNG supplies on DES basis has strengthened the latter’s position as a world class shipping provider in the LNG sector.