The Nigerian National Petroleum Corporation (NNPC) Limited has officially started exporting Liquefied Natural Gas (LNG) to the Asian markets of Japan and China. This was confirmed in a statement released Monday by NNPC’s spokesperson, Olufemi Soneye, in Abuja.
Soneye stated that the shipments to both countries were made on a Delivered Ex-Ship (DES) basis, an international trade term where the seller assumes responsibility for shipping and insuring the goods until they reach the designated port.
“In line with its strategic vision to be a dynamic and reliable global energy supplier of choice, NNPC Ltd. has commenced the shipment of LNG cargoes to Japan and China on a DES basis. NNPC achieved this milestone by collaborating with its subsidiaries, NNPC LNG Ltd. and NNPC Shipping Ltd. The first DES LNG cargo was delivered to Futtsu, Japan, on June 27, 2024, aboard the 174,000m³ LNG vessel Grazyna Gesicka. Following this, NNPC expanded its reach to China with another LNG cargo delivery on a DES basis,” Soneye said.
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Soneye also noted that NNPC has been involved in LNG trading since November 2021, having traded over 20 cargoes into European and Asian markets on a free-on-board (FOB) basis. He highlighted that the shift to DES trading allows NNPC to capture more market share, enhance in-house capabilities, and increase brand recognition globally.
Dapo Segun, Executive Vice President of NNPC Downstream, emphasized that the DES system is financially advantageous and positions NNPC to enter the downstream LNG sector more effectively. This move is seen as a step towards expanding market share and building internal capacity.
Panos Gliatis, Managing Director of NNPC Shipping, praised the collaboration between NNPC LNG Ltd. and NNPC Shipping Ltd. for reinforcing NNPC’s status as a top-tier shipping provider in the LNG sector. He mentioned that NNPC Shipping aims to expand its shipping portfolio, including owning vessels, to provide greater client flexibility.
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Nigeria has been transitioning from oil to gas for decades, leveraging its vast gas reserves surpassing its crude oil reserves. This strategic shift has gained momentum under President Tinubu, who has introduced new executive orders to strengthen the gas industry. Recently, President Tinubu inaugurated three gas plants in Delta and Imo States, aiming to boost the country’s gas production by 25%.
Additionally, NNPC has entered into a Project Development Agreement (PDA) with North American firm Golar LNG to establish offshore LNG production in the Niger Delta. This project will utilize approximately 400-500 million standard cubic feet per day (mmscf/d) of gas, with plans to produce LNG, Liquefied Petroleum Gas (LPG), and condensate domestically.
