Emmanuel OchayiNNPC Exports Gas to China and Japan
The Nigeria National Petroleum Corporation (NNPC) Limited, has commenced the export of Liquefied Natural Gas (LNG), to the Asian markets of China and Japan, marking a significant milestone in its global energy strategy.
This development, disclosed by the NNPC spokesperson, Olufemi Soneye, highlights the company’s expanding footprint in the global LNG market.
Join our WhatsApp ChannelSpeaking on Monday in Abuja, Soneye explained that the shipments to both countries were conducted on a Delivered Ex-Ship (DES) basis. “NNPC Ltd. has started exporting LNG to Japan and China on a DES basis as part of our commitment to being a dynamic and reliable global energy supplier,” Soneye stated. He emphasised that this move was made possible through the collaboration of NNPC’s downstream subsidiaries, NNPC LNG Ltd., and NNPC Shipping Ltd.
Expanding Global Presence
The NNPC’s first DES LNG cargo was delivered from the 174,000m³ LNG vessel, Grazyna Gesicka, at Futtsu, Japan, on June 27, 2024. This marks the beginning of a broader initiative to increase their presence in Asian markets. “Since the initial delivery, we have expanded our reach to China, demonstrating our capability and ambition in the global LNG market,” Soneye added.
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Dapo Segun, the Executive Vice President of Downstream, described the DES system as a significant advancement for the company. “The DES system is not just financially rewarding but also positions us to capture more market share in the downstream LNG sector. This allows us to build in-house capacity and ensure that global customers are familiar with the NNPC Ltd. brand,” Segun explained.
Strengthening NNPC’s Shipping Capabilities
Panos Gliatis, Managing Director of NNPC Shipping, highlighted the importance of the collaboration between NNPC LNG Ltd. and NNPC Shipping Ltd. in executing these LNG supplies.
“This partnership has strengthened our position as a world-class shipping provider in the gas sector,” Gliatis noted.
He also mentioned that their Shipping plans to build a diverse shipping portfolio, including owned vessels, to provide the necessary flexibility for NNPC and other clients.
Strategic Shift from Oil to Gas
Nigeria’s transition from oil to gas has been a long-term strategy, driven by the nation’s vast gas reserves, which significantly exceed its crude oil reserves. This shift has gained further momentum under President Tinubu, who recently inaugurated three gas plants in Delta and Imo States. These plants are expected to boost the country’s gas production by at least 25%.
As part of its ongoing efforts to enhance gas production, NNPC has entered into a Project Development Agreement (PDA) with North American firm Golar LNG. This partnership aims to establish offshore LNG production in the Niger Delta, harnessing 400-500 million standard cubic feet per day (mmscf/d) of gas. The project will focus on producing LNG, Liquefied Petroleum Gas (LPG), and condensate within Nigeria.
Building a Global Energy Brand
The NNPC’s recent achievements in LNG exports to Asia signify a broader goal of establishing itself as a leading global energy supplier. With the successful implementation of the DES system and the ongoing expansion into new markets, NNPC is poised to capture a larger share of the global LNG market.
“This is just the beginning of our journey as a global energy player,” Soneye concluded, reinforcing NNPC’s commitment to continuing its strategic vision in the global energy landscape.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
