NNPC Initiates Natural Gas Exports to Japan and China

The Nigerian National Petroleum Company Limited (NNPC) has begun exporting Liquefied Natural Gas (LNG) to Japan and China on a Delivered Ex-Ship (DES) basis, marking a significant milestone in its strategic vision to become a leading global energy supplier.

In a statement issued on Monday, NNPC spokesperson Olufemi Soneye detailed that the company achieved this milestone through the efforts of its downstream subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd. The first DES LNG cargo, delivered from the 174,000m³ LNG vessel *Grazyna Gesicka*, arrived at Futtsu, Japan, on June 27, 2024. Subsequently, NNPC expanded its reach to China with another LNG cargo.

Delivered Ex-Ship (DES) is an international commercial term requiring the seller to handle shipping and insurance until the cargo reaches the specified port, demanding greater expertise and efficiency compared to the Free on Board (FOB) system.

Since its entry into LNG trading in 2021, NNPC Ltd has sold over 20 cargoes to European and Asian markets on an FOB basis. The switch to the DES system offers not only better financial returns but also enhances NNPC’s position in the LNG sector’s downstream market.

Executive President, Downstream, Mr. Dapo Segun, commented, “The DES system, apart from being more financially rewarding, enables NNPC Ltd to penetrate the downstream segment of the LNG sector, capture greater market share, and strengthen the global presence of the NNPC Ltd brand.”

The partnership between NNPC LNG Ltd and NNPC Shipping Ltd has bolstered the latter’s reputation as a top-tier LNG shipping provider. NNPC Shipping plans to expand its fleet, including owning vessels, to offer more shipping flexibility.

NNPC LNG Ltd, in collaboration with NNPC Shipping Ltd, aims to deliver at least two additional LNG cargoes to the Asian market on DES basis by November, with further orders anticipated before the end of the year.