The Nigerian National Petroleum Company Limited (NNPC Ltd) has started shipping Liquefied Natural Gas (LNG) to Japan and China on a Delivered Ex-Ship (DES) basis.
DES, a global trade term, means the seller is responsible for delivering goods to a specific port, including shipping and insurance costs. This method demands greater expertise and efficiency compared to the Free on Board (FOB) system.
Olufemi Soneye, Chief Corporate Communications Officer at NNPC Ltd, announced that the company, through its subsidiaries NNPC LNG Ltd and NNPC Shipping Ltd, delivered its first DES LNG shipment using the 174,000m³ vessel Grazyna Gesicka to Futtsu, Japan, on June 27, 2024. Since then, it has also delivered LNG to China on the same basis.
“NNPC Ltd has been active in LNG trading since 2021, making its first sale in November of that year. It has since sold over 20 cargoes to European and Asian markets using the FOB method,” the statement noted.
Dapo Segun, Executive President of Downstream, highlighted that the DES system offers greater financial benefits and enhances NNPC Ltd’s position in the LNG market. It helps the company gain market share, build internal capabilities, and increase brand recognition globally. The collaboration between NNPC LNG Ltd and NNPC Shipping Ltd has also reinforced their standing as top-tier players in the LNG shipping industry.
