The Nigerian National Petroleum Company (NNPC) Limited says it has commenced the shipment of liquefied natural gas (LNG) cargoes to Japan and China on a delivered ex-ship (DES) basis.
The spokesperson of the national oil company, Olufemi Soneye, made this disclosure in a statement on Monday in Abuja.
Soneye explained that the shipment of the cargo to both Asian countries was conducted on a Delivered Ex-Ship (DES) basis.
Delivered ex-ship (DES) is an international commercial term that requires the seller to deliver the products or goods at a specific port.
The seller takes responsibility for the shipping and insurance for the products or goods until they get to the specified port of delivery.
NNPC said this milestone was achieved through the collaboration of two of its downstream subsidiaries – NNPC LNG Limited and NNPC Shipping Limited – which delivered its first DES LNG cargo from “the 174,000m³ LNG vessel, Grazyna Gesicka at Futtsu, Japan, on June 27”.
NNPC said it has been involved in LNG trading since 2021, with its first LNG cargo sale occurring in November of that year.
The national oil company said since then, it has traded over 20 cargoes into the European and Asian markets on free on board (FOB) basis..
Speaking on the development, Dapo Segun, executive vice-president of downstream at NNPC, said the DES system is more financially beneficial and enables NNPC to expand its presence in the downstream segment of the LNG industry.
Additionally, the managing director of NNPC Shipping Panos Gliatis commented on the transaction and said that the goal of the national oil company’s shipping division is to develop a portfolio of ships, including owned ones, in order to “provide our sister company and other clients with all the shipping flexibilities they need.”
According to the statement, NNPC Shipping’s standing as a top shipping company in the LNG industry has been enhanced by the partnership between NNPC LNG and NNPC Shipping in carrying out the LNG shipments on a DES basis.
According to NNPC, both businesses would provide a minimum of two LNG cargoes to the Asian market on a DES basis by November, and additional orders are anticipated before the year ends.
