NNPC Commences LNG Shipments to Japan and China

NNPC explained that under the DES arrangement, the seller is responsible for delivering the goods to a specified port, including managing the shipping and insurance until the cargo reaches its destination. This system demands more expertise and efficiency than the Free on Board (FOB) method.

According to a statement by Mr. Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd, this achievement was made possible through the joint efforts of two NNPC subsidiaries—NNPC LNG Ltd and NNPC Shipping Ltd. The first DES LNG shipment, using the 174,000m³ LNG vessel Grazyna Gesicka, was successfully delivered to Futtsu, Japan, on June 27, 2024.

Since that initial delivery, NNPC has also expanded its operations to China, completing another DES LNG shipment.

Mr. Soneye noted that NNPC has been involved in LNG trading since 2021, with its first sale occurring in November of that year. Since then, over 20 LNG cargoes have been traded in European and Asian markets, primarily on an FOB basis.

Mr. Dapo Segun, Executive President, Downstream, highlighted that the DES system not only brings better financial returns but also allows NNPC Ltd to enter the downstream LNG market, enabling the company to gain more market share while building internal capacity and strengthening its global brand presence.

The collaboration between NNPC LNG Ltd and NNPC Shipping Ltd in executing DES LNG deliveries has reinforced the latter’s reputation as a leading player in the global LNG shipping industry.

Mr. Panos Gliatis, Managing Director of NNPC Shipping, expressed the company’s intent to expand its shipping portfolio, including the acquisition of its own vessels, to better serve NNPC Ltd and other clients.

Additionally, NNPC LNG Ltd, in partnership with NNPC Shipping Ltd, is planning to deliver at least two more LNG shipments to the Asian market by November, with more orders expected by the end of the year.