In a Monday statement in Abuja, Mr. Segun Dapo, the Executive President, Downstream, NNPC Ltd., was reported by Mr. Olufemi Soneye, Chief Corporate Communications Officer, as saying this. According to a cited statement from Dapo, the development aligns with the company’s strategic aim of being a dependable worldwide energy provider.
In addition to offering greater financial rewards, he said that the DES system gave NNPC Ltd. access to the LNG industry’s downstream market. An international commercial concept known as Delivered Ex-Ship (DES) mandates that the seller deliver the goods/products at a designated port. Until the products reach the designated port of delivery, the seller is in charge of their transportation and insurance. Execution of this system calls for more skill and efficiency than the Free on Board (FOB) system.
Soneye further cited Dapo as stating that two of NNPC Ltd.’s downstream businesses worked together to help the company reach this milestone. He named NNPC LNG Ltd. and NNPC Shipping Ltd. as the subsidiaries. On June 27, 2024, at Futtsu, Japan, he stated, it delivered its first DES LNG cargo from the 174,000 m³ LNG tanker Grazyna Gesicka. Since then, it has delivered one LNG cargo on a DES basis, extending its reach into China.
Since November of 2021, when it sold its first LNG cargo, NNPC Ltd. has been engaged in LNG trading. Since then, it has traded more than 20 cargoes on a FOB basis into the Asian and European markets. According to him, “it will position NNPC Ltd. to capture more market shares while building in-house capacity and ensuring that the NNPC Ltd brand is well-known throughout the world.”
Dapo claims that NNPC Shipping Ltd.’s standing as a top shipping company in the LNG industry has been enhanced by the partnership between NNPC LNG Ltd. and NNPC Shipping Ltd. in carrying out the LNG supply on DES basis.
