The Nigerian National Petroleum Company Limited (NNPC) has begun shipping Liquefied Natural Gas (LNG) to Japan and China using the Delivered Ex-Ship (DES) model. This initiative aligns with NNPC’s vision of establishing itself as a leading global energy provider.
In a statement released on Monday, company spokesperson Olufemi Soneye noted that this significant milestone was achieved through the collaboration of two of its subsidiaries: NNPC LNG Ltd and NNPC Shipping Ltd.
The first DES LNG cargo was successfully delivered to Futtsu, Japan, on June 27, 2024, using the 174,000m³ vessel *Grazyna Gesicka*. Following this, NNPC extended its reach to China with another DES LNG shipment.
Under the DES arrangement, the seller is responsible for transporting and insuring the goods until they reach the designated port, a process that requires a higher level of expertise than the Free on-board (FOB) method. NNPC has been active in LNG trading since 2021, having sold over 20 cargoes to European and Asian markets on an FOB basis.
The DES system, according to Executive President Dapo Segun, not only increases financial returns but also strengthens NNPC’s position in the downstream LNG market, enhancing its global brand presence.
