Liquefied natural gas cargoes are now being shipped by Nigerian National Petroleum Company Limited on a delivered ex-ship basis to China and Japan.

It claimed that the action was consistent with its strategy goal of becoming the go-to, dependable, and dynamic global energy supplier. In a statement released on Monday, the company’s spokesperson, Olufemi Soneye, stated that two of its downstream businesses worked together to help NNPC reach this significant milestone.

He listed the subsidiaries as NNPC LNG Ltd and NNPC Shipping Ltd, the latter of which on June 27, 2024, delivered its first DES LNG cargo from the 174,000-square-meter LNG vessel Grazyna Gesicka at Futtsu, Japan.

“It has since increased its presence in China by delivering one LNG cargo on a DES basis,” Soneye said.

Delivered Ex-Ship is a word used in international commerce that mandates that the seller deliver the goods or products to a designated port. Until the products reach the designated port of delivery, the seller is in charge of their transportation and insurance.

Execution of this system demands more skill and efficiency than the Free on-board system. Since November of 2021, when it sold its first LNG cargo, NNPC Ltd. has been engaged in LNG trading.

Since then, it has traded more than 20 cargoes on a FOB basis into the Asian and European markets. Executive President of Downstream, Mr. Dapo Segun, discussed the development and stated, “The DES system, in addition to being more financially rewarding, allows NNPC Ltd inroads into the downstream segment of the LNG sector.”

“It puts NNPC in a position to increase its market shares while enhancing internal capabilities and guaranteeing that the NNPC Ltd. brand is well-known to consumers worldwide.”

The business said that NNPC Shipping Ltd’s standing as a top shipping company in the LNG industry has been enhanced by its partnership with NNPC LNG Ltd in carrying out the LNG supply on DES basis. 

According to Panos Gliatis, NNPC Shipping’s managing director, “NNPC Shipping intends to build a shipping portfolio (including owned vessels) so that we can provide our sister company and other clients all the shipping flexibility they need.” By November, at least two more LNG cargoes are expected to be delivered to the Asian market on a DES basis by NNPC LNG Ltd and NNPC Shipping Ltd. The national oil company said that before the year ends, a lot more orders are anticipated.