NNPC Begins LNG Shipments to Japan and China, Expands Global Reach

The Nigerian National Petroleum Company Limited (NNPC Ltd) has officially commenced the shipment of Liquefied Natural Gas (LNG) cargoes to Japan and China. This milestone, announced on Monday, aligns with NNPC Ltd’s strategic vision to establish itself as a leading and reliable global energy supplier.

According to a statement by Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd, the shipments are being carried out on a Delivered Ex-Ship (DES) basis, a method that requires the seller to handle both shipping and insurance until the goods reach the specified port.

The first of these LNG cargoes was delivered to Futtsu, Japan, on June 27, using the 174,000m³ LNG vessel, Grazyna Gesicka. Following this, NNPC Ltd expanded its reach to China with another DES-based delivery.

“This move underscores our commitment to capturing a larger share of the LNG market while enhancing in-house capabilities,” said Dapo Segun, NNPC Ltd’s Executive Vice President, Downstream. He emphasized that the DES system not only offers higher financial returns but also allows NNPC Ltd to strengthen its presence in the downstream segment of the global LNG sector.

NNPC Ltd has been active in LNG trading since 2021, starting with its first cargo sale in November of that year. The company has since traded over 20 cargoes in the European and Asian markets, primarily on a Free on Board (FOB) basis.

The ongoing collaboration between NNPC LNG Ltd and NNPC Shipping Ltd has further bolstered NNPC Shipping’s standing as a world-class provider in the LNG shipping sector. Panos Gliatis, Managing Director of NNPC Shipping, highlighted the company’s ambitions to develop a robust shipping portfolio, which includes owned vessels, to meet the growing demands of its clients.

Looking ahead, NNPC LNG Ltd, in partnership with NNPC Shipping Ltd, plans to deliver at least two more LNG cargoes to the Asian market by November, with additional orders anticipated before the year’s end.