… NNPC Shipping Ltd intends to build a shipping portfolio, including owned vessels

… schedules to deliver at least two more LNG cargoes to Asian market on a DES basis by November

Oredola Adeola

The Nigerian National Petroleum Company Limited (NNPC Ltd) has started shipping Liquefied Natural Gas (LNG) cargoes to Japan and China on a Delivered Ex-Ship (DES) basis, a financially advantageous move that enhances its reputation as a dynamic and dependable global energy supplier.

Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd. made this known in a statement obtained by Advisors Reports on Monday.

According to Soneye, NNPC Ltd 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 June 27, 2024.

He added that since June 2024, the national oil and gas company has expanded its footprint to China with the delivery of one LNG cargo on a DES basis.

the NNPC CCCO further explained that the Delivered Ex-Ship (DES) is an international commercial term that requires the seller to deliver the products/goods at a specific port.

He said, “The seller 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 NNPCL CCCO further emphasised 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 an FOB basis.

According to Soneye,  NNPC LNG Ltd, in collaboration with NNPC Shipping Ltd, is scheduled to deliver at least two more LNG cargoes to the Asian market on a DES basis by November. Many more orders are expected before the end of the year.

Mr. Dapo Segun, Executive Vice President, Downstream, in his remark, 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”.

Panos Gliatis, Managing Director of NNPC Shipping explained that the collaboration between NNPC LNG Ltd and NNPC Shipping Ltd in executing the LNG supplies on a DES basis has strengthened the latter’s position as a world-class shipping provider in the LNG sector.

He said, “NNPC Shipping intends to build a shipping portfolio (including owned vessels) so that we can provide our sister company and other clients with all the shipping flexibilities they need”.