The Nigerian National Petroleum Company Limited (NNPC Ltd) is making significant strides in expanding its global market footprint by venturing into Japan and China for the supply of Liquefied Natural Gas (LNG) on a Delivered Ex-Ship (DES) basis. This strategic move aligns with NNPC Ltd’s vision to establish itself as a dynamic and reliable global energy supplier, further solidifying its presence in the Asian energy markets.
Key Collaborations and Milestones
This milestone was made possible through the collaborative efforts of NNPC Ltd’s Downstream subsidiaries, NNPC LNG Ltd, and NNPC Shipping Ltd. The first DES LNG cargo was successfully delivered on June 27, 2024, by the 174,000m³ LNG vessel, Grazyna Gesicka, at the Futtsu terminal in Japan. This achievement marks a significant step in NNPC Ltd’s global expansion strategy.
Building on the successful delivery to Japan, NNPC Ltd expanded its reach to China, further cementing its position as a key player in the Asian energy markets. The delivery of the DES LNG cargo to China represents another significant milestone in the company’s efforts to establish a strong presence in the region.
Complexities of the DES System
The DES system, which is more complex and demanding than the Free on Board (FOB) system, places the responsibility of shipping and insurance on the seller until the goods reach the designated port. This method requires a high level of expertise and operational efficiency, showcasing NNPC Ltd’s growing capabilities in international energy logistics.
NNPC Ltd’s successful LNG shipments to Japan and China highlight the company’s strategic commitment to expanding its global market presence. By navigating the complexities of the DES system and ensuring seamless deliveries to key Asian markets, NNPC Ltd is positioning itself as a leading global energy supplier, capable of meeting the evolving demands of international markets.
