SUSTAINABLE MARINE TRANSPORTATION CONFERENCE

2014 Singapore Tuesday 8 April 2-14

Distribution of LNG in Ports

By

Rolv Stokkmo

GASPARTNERS PTE, LTD

GasPartners Pte, Ltd

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GASPARTNERS PTE, LTD a gas brokering ( product as well as ships), logistic, and consultancy firm specializing in the area of LNG, LPG, and petrochemical gases.

Why switch to LNG?

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"We've got to pause and ask ourselves: How much clean air do we need?"

— Lee Iacocca, CEO/Chairman, Chrysler Corporation, 1979-1992

Why switch to LNG?

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Almost 1 in 8 or more than 7 mill people dies from air pollution every year (Source WHO)

Smokestack emissions from international shipping kill approximately 50,000 people a year in Europe, at an annual cost to society of more than €58 billion, according to a recent scientific study.

Why switch to LNG?

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A new study has found that, on top of all the other manner of ways our cars are trying to kill us, the pollution they emit is now one of the fastest growing causes of death in the world.

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Why switch to LNG

Large gas reserves

Mountainous landscape – pipeline grid expensive

Local and regional distribution of LNG a flexible option

Incentives from the government

LNG distribution system in Norway developed with industrial customers in mind.

New technology facilitated use of LNG as fuel in vessels.

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Small scale LNG distribution system in Norway

Global LNG fleet

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2000-First LNG powered vessel entered service in Norway.

Global fleet set to grow to almost 200o by 2020 (DNV-GL forecast)

Europe and North America leading the way

37 new LNG-fuelled ships +2 conversions on order

“Within the next five to 10 years, LNG will become the main fuel source for all marine transportation”. Anthony Chiarello, TOTE’s president and chief executive officer

Global LNG-fueled Fleet

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LNG Opportunities LIQUEFACTION

Pre-treatment Baseload LNG Small/Mid-Scale LNG

DISTRIBUTION

LNG Carriers Tankers Virtual Pipeline

INFRASTRUCTURE

Satellite Storage Bulk LNG Tanks MicroBulk

Applications END USE APPLICATION Commercial Residential Power Generation Transportation

World LNG Estimated Landed Prices ($US / MMBTU)

Japan 16- 17

Singapore 15-16

China 15-16

NEW 10-12

US 6-8 Spain 14

Brazil 15-16

Small scale LNG distribution system in Norway

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Bunkering alternatives:

Truck to ship

Shore tank to ship

Ship to ship or barge to ship

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LNG Value Chain

LNG bunkering and small scale distribution of LNG in Singapore

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Customers need steady supply in order to switch to using LNG

LNG prices competitive with other fuels

LNG safer than CNG

Road transportation of LNG safer than that of CNG

LNG is0-containers

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LNG transport trailers / LNG iso-containers consist of two nested tanks that form a thermos bottle-like insulating vessel.

The inner tank stainless steel or aluminium

The outer tank must be steel (typically carbon or stainless steel).

The space between the inner and outer tank is evacuated and filled with an insulating material such as multi-layer super insulation or fiberglass

Pressure up to 10 bar gauge

Holding time more than 80 days

LNG bunkering and small scale distribution of LNG in Singapore

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Strategic located

Demand for LNG as bunker fuel as well as for industrial use already here.

Volume not yet there to justify developing the necessary infrastructure for bunkering of ocean going vessels

Demand for small scale distribution of LNG already there ( tug boats, shore based industry)

So why isn’t it happening?

LNG bunkering and small scale distribution of LNG in Singapore

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The missing link!

Storing, handling, transporting of LNG iso-containers

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ISO Tank containers: efficient storage, loading and transport

LNG Safety issues

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FIRE

GAS EXPLOSIONS

POOLING AND BRITTLE FRACTURE

COLD BURNS/FROST BITE

LNG Safety Issues

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LNG industry lower risk profile than airlines, chemical and petrochemical processing facilities

Ultimately, it is a question of what risk level is tolerable or acceptable vs. the economic benefit derived by society/communities

LNG bunkering and small scale distribution of LNG in Singapore/Asia

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Small scale LNG significant potential in Singapore and Asia

Vehicle fuel, railways, smaller power plants, harbor service vessels and equipment, ferries, manufacturing industry ( e.g. ceramic industry), hawker centers

Safe, flexible, cost-efficient

Road, rail, sea

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Thank you !

Contact GasPartners +65 6680 7981/+842871013 Email: stokkmo@singnet.com.sg 111 C Telok Ayers Street 2nd Floor, Singapore 068680