The Nigerian National Petroleum Company Limited (NNPC Ltd.) has initiated shipments of Liquefied Natural Gas (LNG) to Japan and China on a Delivered Ex-Ship (DES) basis.
This move aligns with NNPC’s strategic vision to become a preferred global energy supplier. The agreements to this effect, emphasises Nigeria’s commitment to leveraging its vast natural gas resources for economic growth and energy security.
NNPC said this it 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.
Since then, it has expanded its footprint to China with the delivery of one LNG cargo on DES basis.
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.
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. It requires expertise and a higher level of efficiency to execute than the Free on Board (FOB) system.
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, allows NNPC Ltd inroads into the downstream segment of the LNG sector and positions it 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 in executing the LNG supplies on DES basis has strengthened the latter’s position as a world class shipping 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 all the shipping flexibilities they need,” managing director of NNPC Shipping, Panos Gliatis, enthused.
NNPC LNG Ltd, in collaboration with NNPC Shipping Ltd, is scheduled to deliver at least two more LNG cargoes to the Asian market on DES basis by November. Many more orders are expected before the end of year.
Visit website
DNews Info is a trusted source for breaking news, insightful commentary, and in-depth coverage of events across Nigeria and beyond. With a commitment to delivering accurate, timely, and engaging stories, we aim to keep our readers informed and empowered. Stay connected for the latest updates in politics, business, entertainment, and more.
Discover more from DnewsInfo
Subscribe to get the latest posts sent to your email.
