The Nigerian National Petroleum Company Limited (NNPC Ltd) has taken a significant step towards achieving its goal of becoming a leading global energy supplier.
News About Nigeria reports that the NNPC has started shipping Liquefied Natural Gas (LNG) to Japan and China on a Delivered Ex-Ship (DES) basis, marking a major milestone in its expansion plans.
According to Olufemi Soneye, spokesperson for NNPC Ltd, this achievement is the result of a successful partnership between the company’s downstream subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd.
The first DES LNG cargo was delivered from the Grazyna Gesicka vessel at Futtsu, Japan, on June 27, 2024.
The statement said since then, NNPC Ltd has expanded its reach to China, delivering one LNG cargo on a DES basis.
The DES system requires the seller to take responsibility for shipping and insurance until the products reach the specified port of delivery, making it a more complex and efficient process than the Free on Board (FOB) system.
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,”the statement added.
It further quoted the Managing Director of NNPC Shipping, Panos Gliatis, saying,
“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.”
“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, Soneye stated.
