The Nigeria National Petroleum Corporation (NNPC) Limited has announced the commencement of Liquefied Natural Gas (LNG) exports to the Asian markets of China and Japan.
The spokesperson of the national oil company, Olufemi Soneye, made this disclosure in a statement on Monday in Abuja.
Soneye explained that the shipment of the cargo to both Asian countries was conducted on a Delivered Ex-Ship (DES) basis.
A 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.
“In line with its strategic vision to be a dynamic and reliable global energy supplier of choice, the Nigerian National Petroleum Company Limited (NNPC Ltd.) has commenced shipment of Liquefied Natural Gas (LNG) cargoes to Japan and China on Delivered Ex-Ship (DES) basis.
“NNPC Ltd. Achieved the milestone through the collaboration of two of its Downstream subsidiaries – NNPC LNG Ltd. And NNPC Shipping Ltd. – which delivered its first DES LNG cargo from the 174,000m³ LNG vessel, Grazyna Gesicka at Futtsu, Japan, on 27th June 2024.
“Since then, it has expanded its footprint to China with the delivery of one LNG cargo on a DES basis,” he said.
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Moreover, Soneye said NNPC has been involved in LNG trading since 2021 with its first LNG cargo sale in November of that year.
According to him, it has since traded over 20 cargoes into the European and Asian markets on FOB basis.
Speaking on the development, the Executive Vice President, of Downstream, Dapo Segun, said:
“The DES system, apart from being more financially rewarding, allows NNPC Ltd. Inroads into the downstream segment of the LNG sector and positions it to capture more market shares while building in-house capacity and ensuring that global customers are familiar with the NNPC Ltd. Brand”.
On his part, the Managing Director of NNPC Shipping, Panos Gliatis, added that the collaboration between NNPC LNG Ltd. And NNPC Shipping Ltd. in executing the LNG supplies on a DES basis has strengthened the latter’s position as a world-class shipping provider in the LNG sector.
“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 flexibilities they need,” Gilatis noted.
What you should know
- Nigeria’s transition from oil to gas in its energy sector has been ongoing for decades, driven by the nation’s vast gas reserves, which far exceed its crude oil reserves.
- This strategic shift has gained further momentum under President Tinubu, who has enacted new executive orders to bolster the gas industry.
- As part of these efforts, President Tinubu recently inaugurated three gas plants located in Delta and Imo States, with the goal of increasing the country’s gas production by at least 25%.
- Moreover, NNPC entered into a significant agreement with Golar LNG, a North American firm, to establish offshore Liquefied Natural Gas (LNG) production in the Niger Delta.
- This Project Development Agreement (PDA) will harness approximately 400-500 million standard cubic feet per day (mmscf/d) of gas, with plans to produce LNG, Liquefied Petroleum Gas (LPG), and condensate within the country.
