Boost For Naira, Economy as NNPC Begins Shipments of Gas to Japan, China

• The Nigerian National Petroleum Company Limited (NNPCL) says it has successfully shipped LNG cargoes to Japan and China
• The company disclosed that shipments were via the ex-ship (DES) basis, requiring the seller to deliver the goods to a designated port
• The company disclosed that it commenced LNG sales in 2021, with its first LNG cargo sale in November of that year

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian National Petroleum Company Limited (NNPC) says it has commenced the shipment of liquified natural gas (LNG) cargoes to Japan and China on a delivered ex-ship (DES) basis.

Delivered ex-ship (DES) is an international commercial term requiring the seller to provide products or goods at a specific port.

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Two NNPC subsidiaries collaborate in the shipment

The seller is responsible for shipping and insurance until the products arrive at the specified delivery port.

A statement by NNPC on Monday, August 26, 2024, posted on its X handle, NNPC’s chief corporate communications officer, Olufemi Soneye, said the move aligns with the strategic vision of the company to be a dynamic and reliable global energy supplier of choice.

The company disclosed that the milestone was achieved via the collaboration of two of its subsidiaries, NNPC LNG Limited and NNPC Shipping Limited, which delivered its first DES LNG cargo via the 174,000m³ LNG vessel, Grazyna Gesicka at Futtsu, Japan, on June 27.

The firm said it has since expanded its footprint to China, delivering one LNG cargo on a DES basis.

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According to the statement, the NNPC has been involved in LNG trading since 2021, with its first LNG cargo sale in November.

The oil firm disclosed that it has traded over 20 cargoes into the EU and Asian markets on a free-on-board (FOB) basis.

NNPC explains cargo shipment

In a FOB transaction, the buyer assumes all risks once the seller ships the product.

NNPC’s executive vice president of Downstream, Dapo Segun, said the DES model is more financially beneficial and allows the NNPC to grow its presence in the LNG industry's downstream segment.

NNPC Reports Increase in Oil Production

Legit.ng earlier reported that The Nigerian National Petroleum Company Limited (NNPCL) has announced an increase in Nigeria's oil production.

According to Mele Kyari, the NNPCL's chief executive officer, Nigeria now produces 1.7 million daily barrels.

This represents a significant increase compared to the 1.28 million barrels per day reported in April.

Source: Legit.ng