AGS NEWS – The Nigerian National Petroleum Company Limited (NNPC) has begun shipping Liquefied Natural Gas (LNG) to Japan and China on a Delivered Ex-Ship (DES) basis.

This move aligns with NNPC’s goal of becoming a leading global energy supplier, according to a statement by the company’s spokesperson, Olufemi Soneye, on Monday.

The milestone was achieved through the collaboration of NNPC’s subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd.

The first DES LNG cargo was delivered to Futtsu, Japan, on June 27, 2024, using the 174,000m³ vessel Grazyna Gesicka. NNPC has since expanded its deliveries to China.

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The DES shipping method, which requires the seller to manage shipping and insurance until the cargo reaches the destination port, is more complex but financially rewarding compared to the Free on Board (FOB) system.

NNPC has been trading LNG since 2021, initially on an FOB basis, and has now traded over 20 cargoes to Europe and Asia.

Dapo Segun, Executive President of NNPC’s Downstream division, highlighted that the DES system not only increases market share but also builds NNPC’s brand in the global market.

NNPC Shipping Ltd plans to further enhance its shipping capabilities to support future LNG deliveries, with at least two more cargoes scheduled for the Asian market by November 2024.