The Nigerian National Petroleum Company Limited (NNPC) yesterday said it had commenced shipment of Liquefied Natural Gas (LNG) cargoes to Japan and China on Delivered Ex-Ship (DES) basis.
According to a statement by the Chief Corporate Communications Officer, Olufemi Soneye, he said that this was in line with its strategic vision to be a dynamic and reliable global energy supplier of choice.
NNPC said that it achieved the milestone through the collaboration of two of its downstream subsidiaries, the 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 June 27, 2024 and since then, the oil company stated that it had expanded its footprint to China with the delivery of one LNG cargo on DES basis.
“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.
It requires expertise and a higher level of efficiency to execute than the Free on Board (FOB) system,” the statement added.
In addition, NNPC stated that it had been involved in LNG trading since 2021 with its first LNG cargo sale in November of that year. It has since traded over 20 cargoes into the European and Asian markets on FOB basis.
