The Nigerian National Petroleum Company Limited (NNPC Ltd) has begun shipping Liquefied Natural Gas (LNG) to Japan and China on a Delivered Ex-Ship (DES) basis, marking a significant expansion in its international operations. DES requires the seller, NNPC Ltd, to handle shipping and insurance until the cargo reaches the destination port, a more complex and rewarding approach than the Free on Board (FOB) system.

This achievement was made possible through the collaboration of NNPC LNG Ltd and NNPC Shipping Ltd. The first DES shipment was successfully delivered to Futtsu, Japan, on June 27, 2024, using the 174,000m³ LNG vessel Grazyna Gesicka. Following this, NNPC expanded to China, delivering another LNG cargo on a DES basis.

NNPC has been trading LNG since 2021, with its first sale in November of that year. To date, it has traded over 20 cargoes in Europe and Asia on an FOB basis. The transition to DES not only offers financial benefits but also enhances NNPC's involvement in the downstream LNG sector, helping to capture more market share and strengthen its brand globally.

Dapo Segun, NNPC's Executive President of Downstream, highlighted the advantages of DES in market positioning and capacity building. Meanwhile, Panos Gliatis, Managing Director of NNPC Shipping, outlined plans to build a robust shipping portfolio, including owned vessels, to support NNPC's operations and provide flexible solutions for clients. NNPC LNG Ltd and NNPC Shipping Ltd plan to deliver at least two more DES LNG cargoes to Asia by November, with additional orders anticipated before the year's end.

Source: Vanguard