By Jemimah Wellington, JKNewsMedia Reporter
THE NIGERIAN National Petroleum Company Limited (NNPC Ltd) has expanded its Liquefied Natural Gas (LNG) shipments to Japan and China.
This marks a significant step in its ambition to become a global energy leader.
NNPC Ltd achieved this milestone by delivering its first LNG cargo to Futtsu, Japan, on June 27, 2024, using the 174,000m³ LNG vessel Grazyna Gesicka.
The success continued with another delivery to China, further solidifying NNPC Ltd’s presence in the Asian market.
This achievement results from the collaboration between NNPC LNG Ltd and NNPC Shipping Ltd. Both subsidiaries are pivotal in this new phase of growth.
By operating on a Delivered Ex-Ship (DES) basis, NNPC Ltd ensures the safe and insured delivery of LNG directly to specific ports, a process requiring precision and expertise.
This method contrasts with the Free on Board (FOB) system, offering more control and higher financial returns.
NNPC Ltd entered the LNG trading market in 2021, with its first sale occurring in November of that year.
Since then, it has successfully traded over 20 LNG cargoes in Europe and Asia, initially on an FOB basis.
However, the shift to DES has allowed NNPC Ltd to strengthen its position in the downstream LNG sector, capturing more market share and enhancing its brand recognition globally.
Executive President, Downstream, Mr. Dapo Segun, highlighted the financial benefits of the DES system and its role in expanding NNPC Ltd’s market influence.
NPC Shipping Ltd’s Managing Director, Panos Gliatis, emphasized the company’s plans to build a comprehensive shipping portfolio, including owned vessels, to offer greater flexibility to NNPC Ltd and other clients.
Looking ahead, NNPC LNG Ltd, says that in collaboration with NNPC Shipping Ltd, it plans to deliver at least two more LNG cargoes to Asia by November 2024, with expectations for more orders before the year’s end.
This continued expansion underscores NNPC Ltd’s commitment to being a reliable global energy supplier.
