Liquefied Natural Gas & Petroleum Gas

Liquified Natural Gas (LNG)

Liquefied natural gas (LNG) is natural gas that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. LNG is odorlesscolorlessnon-toxic and non-corrosive. Hazards include flammability after vaporization into a gaseous state, freezing and asphyxia. The liquefaction process involves removal of certain components, such as dust, acid gaseshelium, water, and heavy hydrocarbons, which could cause difficulty downstream. The natural gas is then condensed into a liquid at close to atmospheric pressure by cooling it to approximately −162 °C (−260 °F); maximum transport pressure is set at around 25 kPa (4 psi). LNG is warmed to become natural gas and is dispersed through pipelines for use by homes and businesses. Natural gas can be used for cooking, heating homes and generating electricity. Commercially, it used for natural for heating, generating electricity, and fueling commercial vehicles.

Liquified Petroleum Gas (LPG)

Liquefied petroleum gas (LPG) also known as, condensate, is a flammable mixture of hydrocarbon gases such as propane and butane. LPG is prepared by refining petroleum or “wet” natural gas, and is almost entirely derived from fossil fuel sources, being manufactured during the refining of petroleum (crude oil), or extracted from petroleum or natural gas streams as they emerge from the ground. LPG is used as fuel gas in heating appliances, cooking equipment, and vehicles. It is increasingly used as an aerosol propellant[1] and a refrigerant,[2] replacing chlorofluorocarbons in an effort to reduce damage to the ozone layer. When specifically used as a vehicle fuel it is often referred to as autogas

FREIGHT ON BOARD (FOB) PURCHASE PROCEDURE FOR LNG & LPG

1. Buyer sends an ACCEPTANCE LETTER of this offer to Seller and Seller sends an INDEMNITY AGREEMENT for Buyer to sign, NOTARIZE in court and return to Seller as a caution against failure from any party.

2. Seller sends SPA for Buyer to counter-signs and return with their (a) Discharge Port/Liquified Unloading Terminal details (b) Habour Master name and phone number

3. Buyer’s Bank issues their READY, WILLING AND ABLE (RWA) LETTER to Seller’s Bank STRICTLY according to the format.

4. Seller contracts Nigerian LNG and obtains an allocation for the contracted quantity and send the  documents/Allocation Papers   as Proof of Product (POP) to Buyer.

5. Buyer sends their (a). “LIQUIFIED GAS ENABLED” VESSEL particulars (CPA, Charter Invoice and Q88)  (b). Passport ID of Buyer’s Supercargo & Inspector to Seller. 

6. Buyer’s Bank issues their irrevocable, transferable and divisible and confirmed cash backed SBLC in favour of Seller STRICTLY according the verbiage. 

7. Seller programmes Buyer’s Vessel for loading at Nigeria LNG loading Terminal and sends  ‘NOTE OF READINESS’ (NOR) to Buyer’s Vessel Captain and copy Buyer.

8. The vessel arrives NNPC Terminal, Buyer conduct the inward clearance for their vessel and product is delivered into Buyer’s Vessel.

9.
Buyer’s Inspector conducts Q&Q test and releases the report to the Bank of both parties within 12 hours.

10. Seller releases all official cargo/shipping documents issued by Nigeria LNG in BUYER’S NAME to Buyer’s Bank for payment. Buyer’s Bank SWIFT payment via MT-103 into Seller’s Account and commission Agents immediately according to IMFPA. Buyer’s Vessel sails away with NNPC

COST INSURANCE FREIGHT (CIF) PURCHASE PROCEDURE FOR LNG & LPG

1. Buyer sends an ACCEPTANCE LETTER of this offer to Seller and Seller sends an INDEMNITY AGREEMENT for Buyer to sign, NOTARIZE in court and return to Seller as a caution against failure from any party.

2. Seller sends SPA for Buyer to counter-signs and return with their (a) Discharge Port/Liquified Unloading Terminal details (b) Habour Master name and phone number (c) NOR/ETA format. 

3. Buyer’s Bank issues their READY, WILLING AND ABLE (RWA) LETTER to Seller’s Bank STRICTLY according to the format.

4. Seller contracts their European Refinery and obtains an allocation for the contracted quantity and send the  documents/Allocation Papers   as Proof of Product (POP) to Buyer.

5. Buyer’s Bank issues their irrevocable, transferable and divisible and confirmed cash backed SBLC in favour of Seller STRICTLY according the verbiage. 

6. Seller/Refinery hires their “LIQUIFIED GAS ENABLED” and send the Vessel’s Q88  to Buyer. Seller load their Vessel at the LNG or LPG loading Terminal and instruct their Vessel Captain to sends  NOR/ETA to Buyer’s unloading terminal/Port. 

7. Buyer acknowledges the E.T.A within 24 hours by sending a Letter of readiness to receive the cargo as wells as their IMPORT LICENSE IF APPLCABLE.

9. Seller moves the cargo to Buyer’s unloading terminal. Buyer’s Inspector conducts Q&Q test and releases the report to the Bank of both parties within 12 hours.

10. Seller releases all official cargo/shipping documents issued by the LNG/LPG Refinery in BUYER’S NAME to Buyer’s Bank for payment. Buyer’s Bank SWIFT payment via MT-103 into Seller’s Account and commission Agents immediately according to IMFPA. Buyer’s Vessel sails away with NNPC