The Nigerian National Petroleum Company Limited (NNPC Ltd) has commenced shipment of Liquefied Natural Gas (LNG) cargoes to Japan and China on Delivered Ex-Ship (DES) basis, said to be in line with its strategic vision to be a dynamic and reliable global energy supplier of choice.
Penpushing reports that a statement by Chief Corporate Communications Officer of the company Olufemi Soneye said the it achieved the milestone through the collaboration of two of its Downstream subsidiaries – 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 27th June, 2024.
The statement added that since then, it has expanded its footprint to China with the delivery of one LNG cargo on DES basis, explaining that Delivered Ex-Ship (DES) is an international commercial term that requires the seller to deliver the products/goods at a specific port.
Penpushing further reports that Soneye explained that 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.
‘NNPC Ltd has 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’, the statement said.
Penpushing also reports that the Executive President, Downstream, Mr. Dapo Segun, speaking on the development said Delivered Ex-Ship (DES) system, apart from being more financially rewarding, allows the company inroads into the downstream segment of the LNG sector and positions it to capture more market shares while building into capacity and ensuring that global customers are familiar with the establishment brand
“The DES system, apart from being more financially rewarding, allows NNPC Ltd inroads into the downstream segment of the LNG sector and positions it to capture more market shares while building in-house capacity and ensuring that global customers are familiar with the NNPC Ltd brand”, he stated.
‘The collaboration between NNPC LNG Ltd and NNPC Shipping Ltd in executing the LNG supplies on DES basis has strengthened the latter’s position as a world class shipping provider in the LNG sector’, Soneye wrote.
Penpushing reports that Managing Director of Nigerian National Petroleum Company Limited (NNPC Ltd) Shipping, Panos Gliatis, said the company shipping intends to build a shipping portfolio (including owned vessels) so that it can provide the sister company and other clients all the shipping flexibilities they need.
‘NNPC LNG Ltd, in collaboration with NNPC Shipping Ltd, is scheduled to deliver at least two more LNG cargoes to the Asian market on DES basis by November. Many more orders are expected before the end of year’, the statement added
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