NNPCL Expands Global Reach with LNG Shipments to Japan, China

The Nigerian National Petroleum Company Limited (NNPCL) has announced a significant milestone in its liquefied natural gas (LNG) trading operations, with the successful shipment of LNG cargoes to Japan and China on a Delivered Ex-Ship (DES) basis.

According to a statement by NNPCL spokesman Olufemi Soneye, the company achieved this feat through the collaboration of its Downstream subsidiaries, NNPC LNG Ltd and NNPC Shipping Ltd.

The first DES LNG cargo was delivered to Futtsu, Japan, on June 27, 2024, and has since expanded to China with the delivery of one LNG cargo.

The DES system requires the seller to deliver products to a specific port, taking responsibility for shipping and insurance until arrival. NNPCL has been involved in LNG trading since 2021, trading over 20 cargoes into European and Asian markets on an FOB basis.

The company plans to deliver at least two more LNG cargoes to the Asian market on a DES basis by November, with more orders expected before year-end.

This move positions NNPCL to capture more market shares, build in-house capacity, and establish its brand globally.

Executive Vice President of Downstream, Dapo Segun, highlighted the financial rewards and market opportunities of the DES system, while Managing Director of NNPC Shipping, Panos Gliatis, expressed enthusiasm for building a shipping portfolio to provide flexibility for clients.