Nigeria Nationwide Petroleum Co. Ltd. (NNPC) mentioned it had made its first deliveries of liquefied pure fuel (LNG) to Japan and China on an ex-ship foundation.
Nigeria’s nationwide oil and fuel firm offered its first LNG cargo late 2021 and has traded over 20 cargoes to the Asian and European markets on a free-on-board foundation, in accordance with NNPC. The latest cargoes for China and Japan marked the primary time NNPC offered LNG to those international locations on a delivered ex-ship (DES) foundation, it mentioned in an announcement.
This implies NNPC oversaw transport and insurance coverage for the merchandise till they reached designated ports, the corporate mentioned. Its subsidiaries NNPC LNG Ltd. and NNPC Delivery Ltd. collaborated on the deliveries.
- Advertisement -
NNPC delivered one LNG cargo on the Knutsen Group-owned Grazyna Gesicka vessel to the Japanese metropolis of Futtsu on June 27. Futtsu, within the Chiba Prefecture, hosts LNG terminals that provide thermal energy stations.
“Since then, it has expanded its footprint to China with the supply of 1 LNG cargo on DES foundation”, NNPC mentioned.
The corporate is scheduled to ship two extra LNG cargoes to Asia on a DES foundation by November. “Many extra orders are anticipated earlier than the tip of yr”, NNPC mentioned.
NNPC downstream government president Dapo Segun mentioned, “The DES system, aside from being extra financially rewarding, permits NNPC Ltd inroads into the downstream section of the LNG sector and positions it to seize extra market shares whereas constructing in-house capability and guaranteeing that international prospects are acquainted with the NNPC Ltd model”.
NNPC’s transport subsidiary plans to personal vessels to offer transport flexibility for NNPC’s LNG arm and different purchasers, NNPC Delivery managing director Panos Gliatis mentioned.
NNPC is increasing its fuel infrastructure to develop each its home and abroad attain.
Late final yr NNPC, native vitality engineering firm UTM Offshore Ltd. and the Delta authorities signed a shareholder deal for the development of the West African nation’s first floating LNG plant, as introduced by UTM Offshore December 22, 2023. The $2.1 billion challenge has a deliberate capability of 1.81 million metric tons each year (MMtpa) to 2.72 MMtpa, in accordance with on-line info from the African Vitality Chamber.
This yr NNPC signed a challenge growth settlement with Golar LNG Ltd. for the deployment of an FLGN facility in Nigeria.
The cope with Bermuda-based Golar LNG “additionally outlines the monetization plan that can make the most of roughly 400-500mmscf/d [million standard cubic feet per day] and produce LNG, LPG [liquefied petroleum gas] and Condensate”, NNPC mentioned in an announcement June 10, 2024.
The FLNG will exploit “huge” confirmed fuel reserves in shallow waters of the Niger Delta, NNPC mentioned. The companions plan to achieve a last funding resolution by the fourth quarter. The beginning of manufacturing is deliberate for 2027.
Within the East Asian market, in addition to China and Japan, NNPC not too long ago held talks with a South Korean consortium towards a possible settlement to export Nigerian LNG to South Korea. “The talks have been geared toward deepening NNPC Ltd.’s drive to faucet into the nation’s huge fuel assets to be a provider of fresh and inexpensive vitality to the worldwide market”, NNPC mentioned January 30, 2024.
“South Korea is a serious vacation spot for Liquefied Pure Gasoline exports and the consortium, in collaboration with the Korean Export-Import Financial institution, has expressed curiosity in advancing discussions on investing in greenfield and different fuel growth alternatives.
“The talks will pave method for the execution of a Memorandum of Understanding that can unlock strategic international direct funding according to the President Bola Ahmed Tinubu administration’s coverage of creating Nigeria a main vacation spot for international buyers”.
Pure fuel manufacturing in Nigeria has grown 0.3 p.c yearly within the decade to 2022, with output that yr at 40.4 billion cubic meters (1.4 trillion cubic ft), in accordance with the Vitality Institute’s 2024 Statistical Evaluate of World Vitality.
Related and non-associated fuel reserves in Nigeria stood at 209.26 trillion cubic ft as of the beginning of 2024, in accordance with a report by the Nigerian Upstream Petroleum Regulatory Fee April 16, 2024.
To contact the writer, electronic mail jov.onsat@rigzone.com
