The Nigerian National Petroleum Company Limited has begun shipment of Liquefied Natural Gas cargoes to Japan and China on Delivered Ex-Ship basis.
The Executive President, Downstream, NNPCL, Segun Dapo, was quoted as having said this in a statement on Monday in Abuja
Olufemi Soneye, Chief Corporate Communications Officer, who endorsed the statement, also quoted Dapo as having said that the development was in line with the company’s strategic vision to be a reliable global energy supplier.
“Apart from being more financially rewarding, the DES system allowed NNPCL to inroad into the downstream segment of the LNG sector,” he said.
The News Agency of Nigeria reports that the Delivered Ex-Ship is an international commercial term that requires the seller to deliver the products/goods at a specific port.
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 system.
Soneye also quoted Dapo as saying that the NNPCL achieved the milestone in collaboration with two of its downstream subsidiaries.
He listed the subsidiaries as NNPC LNG Limited and NNPC Shipping Limited.
He said it delivered its first DES LNG cargo from the 174,000m³ LNG vessel Grazyna Gesicka at Futtsu, Japan on June 27, 2024.
He added: “Since then, it has expanded its footprint to China with the delivery of one LNG cargo on DES basis.
“NNPCL 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 FOB basis.
“It will position the NNPCL to capture more market shares while building in-house capacity and ensuring that global customers are familiar with the NNPCL brand.”
According to Dapo, the collaboration between NNPC LNG Limited and NNPC Shipping Limited 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 Managing Director of NNPC Shipping, Panos Gliatis, was also quoted as saying that the NNPC Shipping intended to build a shipping portfolio (including owned vessels) to provide the sister company and other clients all the shipping flexibilities they needed.
NNPC LNG Limited in collaboration with NNPC Shipping Limited is scheduled to deliver at least two more LNG cargoes to the Asian market on DES basis by November.
More orders are expected before the end of year.
