The Nigerian National Petroleum Company Limited (NNPC Ltd) has successfully launched its Liquefied Natural Gas (LNG) shipments to Japan and China, marking a significant milestone in its global expansion strategy. This move is part of NNPC Ltd’s efforts to establish itself as a prominent global energy supplier.
The achievement came through the coordinated efforts of NNPC Ltd’s Downstream subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd. The first Delivered Ex-Ship (DES) LNG cargo was delivered by the 174,000m³ LNG vessel, *Grazyna Gesicka*, to the Futtsu terminal in Japan on June 27, 2024. Building on this success, NNPC Ltd has also extended its reach to China with a subsequent DES LNG delivery.
The DES trading system, which is more complex and demanding than the Free on Board (FOB) system, involves the seller assuming responsibility for shipping and insurance until the goods reach the destination port. This approach requires significant expertise and operational efficiency, highlighting NNPC Ltd’s growing capabilities in international energy logistics.
Since entering the LNG trading market in November 2021 with its first cargo sale, NNPC Ltd has traded over 20 cargoes primarily to European and Asian markets on an FOB basis. The shift to DES trading represents a strategic evolution, allowing NNPC Ltd to penetrate the downstream segment of the LNG market more effectively.
Mr. Dapo Segun, Executive President of Downstream at NNPC Ltd, underscored the importance of this development. “The DES system not only provides greater financial rewards but also allows NNPC Ltd to capture a larger market share while enhancing our in-house capabilities. This helps strengthen our global presence and brand recognition in the energy sector,” he said.
The collaboration between NNPC LNG Ltd and NNPC Shipping Ltd has bolstered NNPC Shipping’s reputation as a leading provider in the LNG sector. Panos Gliatis, Managing Director of NNPC Shipping, highlighted the company’s commitment to expanding its shipping portfolio, including the acquisition of new vessels to offer greater flexibility and service to clients.
Looking forward, NNPC LNG Ltd, in partnership with NNPC Shipping Ltd, plans to deliver at least two more LNG cargoes to the Asian market on a DES basis by November 2024. The company anticipates additional orders by the end of the year, demonstrating NNPC Ltd’s growing influence in the global LNG market and its dedication to innovation and excellence in energy supply and logistics.
