The Nigerian state-owned oil firm NNPC has increased its exports of liquefied natural gas (LNG) to a Chinese port, following its debut delivery to Japan in June.
As the top oil producer in Africa, Nigeria possesses the continent’s largest gas reserves, estimated at over 200 trillion cubic feet. The majority of its LNG exports have traditionally been handled through Nigeria LNG, where NNPC holds a 49% interest.
NNPC Ltd began trading LNG in 2021, with its inaugural cargo sale taking place in November of that year. Since then, the company has shipped more than 20 cargoes to markets in Europe and Asia on a Free On Board basis, transferring responsibility for the cargo to the buyer once it is dispatched.
Financially beneficial
The company now intends to deliver directly to the ports in the countries requesting the shipments, covering shipping and insurance costs under the Delivered Ex-Ship (DES) terms, which it finds to be more profitable.
“The DES method is not only more financially rewarding but also allows NNPC Ltd to enter the downstream LNG market, increase its market share, and build brand recognition with global customers,” stated Dapo Segun, Executive President of NNPC Downstream, on Monday.
Since last year, NNPC has been expanding its role in the LNG sector, including a new agreement to build a floating LNG plant in Nigeria to enhance exports to Europe.
The company also noted that this progress was achieved in partnership with its shipping arm, with plans to send at least two more LNG cargoes to Asian ports by November.
