The Nigerian National Petroleum Company Limited (NNPCL) has begun shipping Liquefied Natural Gas (LNG) cargoes to Japan and China on a Delivered Ex-Ship (DES) basis.
In a statement on Monday, NNPCL spokesperson Olufemi Soneye revealed that this milestone was achieved through the collaboration of NNPC’s downstream subsidiaries—NNPC LNG Ltd and NNPC Shipping Ltd.
NNPCL made its first DES LNG delivery on June 27, 2024, with the arrival of the 174,000m³ vessel Grazyna Gesicka in Futtsu, Japan. Following this, the company expanded its operations to China, delivering another LNG cargo on a DES basis.
Soneye explained that the DES system requires the seller to deliver goods to a specified port while taking full responsibility for shipping and insurance until the cargo reaches its destination. This system demands a higher level of expertise and efficiency compared to the Free on Board (FOB) model.
NNPCL has been active in LNG trading since 2021, when it completed its first cargo sale in November of that year. Since then, the company has traded over 20 LNG cargoes into both European and Asian markets on an FOB basis. Moving forward, NNPCL plans to deliver at least two more LNG cargoes to Asia on a DES basis by November, with additional orders anticipated before year-end.
Dapo Segun, NNPCL’s Executive Vice President of Downstream, highlighted the financial benefits of the DES system, noting that it allows NNPC to expand its presence in the downstream LNG market, build internal capacity, and enhance global brand recognition.
NNPC Shipping Managing Director Panos Gliatis added that the company aims to develop a robust shipping portfolio, including owned vessels, to provide greater shipping flexibility for NNPC and its clients.