The Nigerian National Petroleum Corporation (NNPC) Limited has announced the launch of its Liquefied Natural Gas (LNG) exports to major Asian markets, specifically China and Japan.
In a statement issued on Monday, NNPC spokesperson Olufemi Soneye revealed that the company has started exporting LNG under the Delivered Ex-Ship (DES) arrangement. Under this international commercial term, the seller is responsible for the shipping and insurance of the LNG until it reaches the designated port.
The first shipment under this arrangement was delivered to Japan’s Futtsu port on June 27, 2024, using the LNG vessel Grazyna Gesicka. Following this, NNPC has successfully expanded its LNG deliveries to China.
Soneye emphasized that this move is part of NNPC’s strategic vision to position itself as a dynamic and reliable global energy supplier. The expansion into the Asian market highlights NNPC’s commitment to increasing its global footprint.
NNPC has been engaged in LNG trading since November 2021, having sold over 20 cargoes to both European and Asian markets on a Free on Board (FOB) basis. The DES arrangement offers NNPC a more financially rewarding method and strengthens its presence in the downstream LNG sector.
Dapo Segun, the Executive Vice President of NNPC’s Downstream sector, explained, “The DES system not only enhances financial returns but also allows NNPC Ltd. to penetrate deeper into the downstream LNG market. This positions us to capture more market share while building our in-house capacity and familiarizing global customers with the NNPC Ltd. brand.”
The successful execution of these LNG deliveries is credited to the collaboration between NNPC LNG Ltd. and NNPC Shipping Ltd. Panos Gliatis, Managing Director of NNPC Shipping, highlighted the importance of this partnership.
“The collaboration between NNPC LNG Ltd. and NNPC Shipping Ltd. has reinforced our position as a top-tier shipping provider in the LNG sector. We are also working towards expanding our shipping portfolio, including acquiring owned vessels, to offer greater flexibility to our clients.”
Nigeria’s transition from oil to gas has been a long-standing goal, driven by the country’s significant gas reserves.
Recently, President Tinubu inaugurated three gas plants in Delta and Imo States, aiming to increase Nigeria’s gas production by at least 25%. Additionally, NNPC has signed a pivotal Project Development Agreement (PDA) with North American firm Golar LNG.
