The Nigerian National Petroleum Corporation (NNPC) Limited has officially commenced the export of Liquefied Natural Gas (LNG) to the Asian markets, specifically targeting China and Japan.
This significant development was announced by Olufemi Soneye, the spokesperson for the national oil company, in a statement released on Monday in Abuja.
According to Soneye, the shipments to these Asian countries are being conducted under the Delivered Ex-Ship (DES) arrangement.
This international commercial term (DES) obligates the seller to deliver goods directly to a specified port, with the seller bearing the responsibility for both shipping and insurance until the cargo safely arrives at the designated port of delivery.
“Aligned with its strategic vision to emerge as a dynamic and reliable global energy supplier of choice, NNPC Ltd. has embarked on the shipment of LNG cargoes to Japan and China under the DES arrangement,” Soneye stated.
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He further elaborated that this achievement was made possible through the collaborative efforts of NNPC’s downstream subsidiaries—NNPC LNG Ltd. and NNPC Shipping Ltd.
The first DES LNG cargo was delivered from the 174,000m³ LNG vessel, Grazyna Gesicka, to the Futtsu terminal in Japan on June 27, 2024. Following this, NNPC expanded its reach by delivering a subsequent LNG cargo to China, also under the DES arrangement.
Soneye highlighted that NNPC has been active in LNG trading since 2021, with its inaugural LNG cargo sale taking place in November of that year. Since then, the corporation has successfully traded over 20 LNG cargoes, primarily targeting the European and Asian markets, albeit on a Free on Board (FOB) basis.
Dapo Segun, NNPC’s Executive Vice President of Downstream, emphasized the financial benefits and strategic advantages of the DES system.
“The DES model not only offers better financial returns but also enables NNPC Ltd. to make significant inroads into the downstream segment of the LNG sector. This positions NNPC Ltd. to capture a larger market share while enhancing our in-house capacity and increasing global recognition of the NNPC Ltd. brand,” Segun stated.
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Panos Gliatis, Managing Director of NNPC Shipping, also commented on the strengthened position of NNPC Shipping Ltd. in the global LNG sector, thanks to its collaboration with NNPC LNG Ltd.
“Our collaboration in executing LNG deliveries under the DES model has bolstered our reputation as a world-class shipping provider in the LNG sector. NNPC Shipping is committed to expanding its shipping portfolio, including the acquisition of owned vessels, to offer our sister company and other clients the shipping flexibility they require,” Gliatis added.