The Nigerian National Petroleum Company Limited (NNPCL) has commenced the shipment of Liquefied Natural Gas (LNG) cargoes to Japan and China on Delivered Ex-Ship (DES) basis.
The NNPCL Executive President, Downstream, Segun Dapo, disclosed this via a statement issued by the company’s spokesperson, Olufemi Soneye, on Monday, August 26, 2024.
Dapo said the development was in line with the NNPCL’s strategic vision to be a reliable global energy supplier.
“Apart from being more financially rewarding, the DES system allowed NNPCL to inroad into the downstream segment of the LNG sector,” he said.
The Delivered Ex-Ship (DES) is an international commercial term that requires the seller to deliver the products/goods at a specific port.
The seller takes responsibility for the shipping and insurance for the products/goods until they get to the specified port of delivery.
It requires expertise and a higher level of efficiency to execute than the Free on Board (FOB) system.
Dapo further stated that the NNPCL achieved the milestone in collaboration with two of its downstream subsidiaries.
He listed the subsidiaries as NNPC LNG Limited and NNPC Shipping Limited.
NNPCL posts N3.3trn ‘highest-ever’ profit, N2.1trn dividend for 2023
He said the NNPCL delivered its first DES LNG cargo from the 174,000m³ LNG vessel Grazyna Gesicka at Futtsu, Japan, on June 27, 2024.
Dapo added: “Since then, it has expanded its footprint to China with the delivery of one LNG cargo on DES basis.
“NNPCL has been involved in LNG trading since 2021 with its first LNG cargo sale in November of that year. It has since traded over 20 cargoes into the European and Asian markets on FOB basis.
“It will position the NNPCL to capture more market shares while building in-house capacity and ensuring that global customers are familiar with the NNPC Limited brand.”
Dapo noted that the collaboration between NNPC LNG Limited and NNPC Shipping Limited in executing the LNG supplies on DES basis has strengthened the latter’s position as a world-class shipping provider in the LNG sector.
The Managing Director of NNPC Shipping, Mr Panos Gliatis, said the NNPC Shipping intended to build a shipping portfolio (including owned vessels) to provide the sister company and other clients with all the shipping flexibilities they needed.
NNPC LNG Limited in collaboration with NNPC Shipping Limited is scheduled to deliver at least two more LNG cargoes to the Asian market on DES basis by November.
- EFCC summons suspended Edo LG chairmen - December 19, 2024
- N110bn fraud: Court grants Yahaya Bello N500m bail - December 19, 2024
- Dangote refinery reduces petrol price to N899/litre - December 19, 2024
