The Nigerian National Petroleum Corporation (NNPC) broadens its international footprint by initiating LNG shipments to Japan and China, marking a strategic move in global energy markets.
NNPC Limited has made an announcement that it is commencing its liquefied natural gas (LNG) shipments to China and Japan, marking a noteworthy move in their strategy for global energy supply.
The goods are being shipped on a delivered ex-ship (DES) basis, which is an international commercial term that assigns the responsibility of shipping and insuring to the seller until they reach their designated port of delivery.
On Monday, Chief Corporate Communications Officer at NNPC Olufemi Soneye underlined in a statement that this achievement was congruent with the corporation’s ambition to transform into an adaptable and dependable worldwide energy provider of preference.
Thanks to the cooperative efforts of two NNPC subsidiaries, namely NNPC LNG Limited and NNPC Shipping Limited, the operation was executed successfully. On June 27th, the first DES LNG shipment measuring 174000m³ originated from Grazyna Gesicka vessel reached Futtsu in Japan. Subsequently expanding its frontier beyond borders smoothly delivered another LNG cargo on a DES basis into China’s hands.
NNPC has been actively participating in the LNG trading industry since 2021, and its inaugural sale took place in November of that same year.
Over 20 LNG cargoes have been traded by the company to European and Asian markets since then, with a focus on free-on-board (FOB) agreements that place all risk on the buyer after shipment.
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According to Dapo Segun, NNPC’s Executive Vice-President of Downstream, the DES system provides financial benefits by increasing both revenue and market share in the LNG sector. He explained that this system offers more substantial rewards as well as an opportunity for capacity-building within NNPC Ltd., thereby expanding its presence downstream in the LNG industry and boosting global customer familiarity with its brand.
Panos Gliatis, as the Managing Director of NNPC Shipping, stated that their intention is to create a strong shipping selection comprising owned ships. The purpose behind this move is to deliver adaptable transportation options for NNPC and other customers alike.
As a means of establishing NNPC Shipping as an unparalleled supplier in the LNG industry, this measure is incorporated into their strategic plan.
NNPC has future plans to transport at least two additional LNG shipments via DES terms to the Asian market by November, and there are potential orders projected for later in the year.
NNPC’s commitment to increasing its global presence in the LNG market is exemplified by the continuous cooperation between NNPC Shipping and NNPC LNG. This ongoing collaboration highlights NNPC’s growing prominence within this industry.
