Global LNG bunkering infrastructure as of January 2014

DNV GL © 2013 JANUARY 2014 SAFER, SMARTER, GREENER1 DNV GL © 2013

JANUARY 2014

MARITIME

Global LNG bunkering infrastructureA status update as of January 2014

DNV GL © 2013 JANUARY 20142

Content

Summary Baltic and North Sea ECA North American ECA Canada and the Great Lakes South America Mediterranean Sea Asia Pacific Middle East

Information contained in this report is based on existing material. Some development may have occurred since the publication and some initiatives may have not been captured which may alter the accuracy of this report


Existing and forecast of global LNG bunkering infrastructure

Existing Planned (Feasibility study, risk study, proposed locations, pending approval)

Proposed (currently being discussed) * See detailed map

Europe*

BusanDubai

Singapore

IncheonNanjing

Wuhan

Buenos Aires

New YorkFourchon

Tadoussac

Tacoma

Duluth

GaolanHambantota

Turkish strait & Marmara Sea

Jacksonville PyeongtaekShanghai

ZhoushanSantander

AlgecirasCartagena

ValenciaBarcelonaFerrol

SeattleVancouverSarnia

Mississippi river


1222345

8

1213

614

36

15

19

162120

718

23

7 29

3127

26

32

28

9

25

28

34

35

33

Existing and forecast of LNG Bunkering infrastructure in Baltic & North Sea ECA

1. Florø2. CCB3. Halhjem4. Snurrevarden5. Risavika6. Stockholm7. Turku8. Bodø9. Vestbase10. Moskenes11. Lødingen

Existing:

Planned:12. Øra13. Lysekil14. Tallin15. Hirtshals16. Brunsbüttel17. Hamburg18. Rotterdam19. Antwerp20. Zeebrugge21. Ghent22. Mongstad23. Gothenborg24. Helsinborg25. Copenhagen26. Aarhus27. Lubeck28. Roscoff29. Helsinki30. Hammerfest

31. Swinoujscie32. Rostock33. Cuxhaven34. Grain35. Tornio36. Klaipeda37. Hou

Harbour

Proposed:

37

1011

28


LNG bunkering infrastructure in Baltic & North Sea ECA (1/5)

Norway 14 of Norwegian terminals are arranged to supply LNG as fuel and

currently, 5 terminals are available for LNG bunkering facilities (i) Florø; 500 m3, (ii) CCB Ågotnes Terminal, Bergen: 500 m3, (iii) Halhjem Terminal, Bergen: 2 x 500 m3, (iv) Small Scale LNG at Snurrevarden, Karmøy; 21 000 tons/y and (v) Small Scale LNG at Risavika, Stavanger: 6 – 10 000m3 and 2 x 12 000m3, Vestbase, and Bodø.

Øra is a distribution terminal (6 500 cbm) for trucks loading which can transport the LNG to remote locations for bunkering of vessels

MogstadVestbase

Øra

Bodø

Florø

CCBHalhjem

SnurrevardenRisavika

MoskenesLødingen

Hammerfest



Sweden– LNG bunkering facility is available at Port of Stockholm to supply LNG to Viking Grace. She sails between Stockholm and Turku.

The LNG is supplied from LNG Terminal in Nynäshamn– A pilot project for LNG bunkering for Baltic Sea ships focused on the Port of Brofjorden, Lysekil, on the west coast of Sweden,

would be funded at €23,103,000 ($30.4 million), covering some 30% of project costs, funded by EU TENT-T programme– Skangass and Preem signed a gas supply agreement that will require the construction of an LNG terminal at Preem refinery in

Lysekil (truck loading facilities). This facility is also likely to serve as an LNG bunkering hub. The LNG will be delivered to Lysekil by Coral Energy, 15,500m3 coastal LNG carrier. The terminal is due to commence at Q1, 2014

– The EU through TENT-T supports a project of LNG bunkering at Rotterdam with a small-scale satellite terminal in Skarvikshamnen, Sweden (Gothenburg) for €34,272,000.The goal is an LNG break bulk facility adjacent to the Gate terminal at the Port of Rotterdam. Participants include LNG Break Bulk Rotterdam (a joint venture of Vopak LNG and Nederlandse Gasunie), and Swedegas and the Ports of Rotterdam and Gothenburg.

Denmark Fjord Line are planning operations of 2 LNG fuelled passenger/cruise vessels between Bergen (Norway) – Stavanger (Norway) –

Hirtshals (Denmark) and Kristiansand (Norway) – Hirtshals (Denmark). Gasnor and the Port of Hirtshals have entered a strategic cooperation concerning the establishment of a LNG terminal. The

port is a hub port for shipping to and from the countries of Scandinavia and Northern Europe. Fjor Line, Color Line and Nor Line are amongst the shipping companies serving the port

Samsøe Municipality is building an LNG fuelled ferry, connecting Samsøe Island and Jutland. The LNG bunkering will be performed at Hou Harbour

Aarhus, Helsingborg and Copenhagen are partners in the LNG bunkering feasibility project, BPO to investigate LNG bunkering opportunities



Germany – The EU through TEN-T programme supports LNG Masterplan for inland ports along the Rhine-Meuse-Main-Danube waterway.

The funding amounting of €40,260,000 covering 50% of the project’s total costs. It is a multi-partner application of 33 companies and organizations from 12 EU Member States

– Gasnor and Brunsbüttel Port, are planning to build an LNG bunker station at a strategic location of the crossing of the river Elba and the Kiel-Canal. There will be a tank in the port and LNG will be pumped in piped to the ships. DNV has been appointed to conduct the risk studies of the project which will be the basis for the authorities’ approval of the project.

– The Port of Lubeck was part of the BPO feasibility studies on LNG bunkering. The facility is planned to serve 36 RoRo and RoPax dock

– Hamburg Port Authority and Linde Group are promoting the use of LNG and are currently compiling a feasibility study on the commercial use of LNG in the Port of Hamburg. Bomin reported that as part of their joint venture with Linde AG will cooperate to develop an LNG bunkering facility at Germany’s Port of Hamburg. The project will be composed of a storage terminal and refueling infrastructure situated at Bomin sister firm Oil tanking's premises at the port. The decision to go ahead with the project was made following the completion of a feasibility study by Linde and the Hamburg Port Authority. The Port Authority itself has reportedly been a key supporter of the project, and has announced it plans to operate an LNG-fueled vessel of its own by 2014.

– Ferry operator AG Ems is building the Germany’s first combined passenger and cargo ferry with LNG propulsion. The ship will operate year-round between Cuxhaven and Heligoland

Netherlands– The EU through TENT-T supports a project of LNG bunkering at Rotterdam with a small-scale satellite terminal in

Skarvikshamnen, Sweden (Gothenburg). The facility, which is expected to be operational in 2014, will be linked via pipeline to the nearby existing Gate LNG import terminal. From there, the LNG-fuel will be made available as small-scale quantities more suitable for distribution to the marine fuel market. Participants include LNG Break Bulk Rotterdam (a joint venture of Vopak LNG and Nederlandse Gasunie), and Swedegas and the Ports of Rotterdam and Gothenburg. Shell signs on as customer for Rotterdam LNG-fuel terminal



Belgium Dec 2011, Argonon was delivered and became Europe first LNG fuelled inland waterway vessel. Although riverside fuelling

depots are planned for Rotterdam, Zwijndrecht and Harlingen, for the moment, Argonon is bunkered with LNG road tanker deliveries from Zeebrugge. By 2014, Zeebrügge and Rotterdam, Zwijndrecht terminals (20 km south of Rotterdam) will be operated

– Flemish Government conducted a study relating to the provision of LNG bunkering facilities in three Belgian ports Antwerp, Zeebrugge and Ghent

France– A study on a project designated Seagas on determining the feasibility LNG bunkering for the Ports of Roscoff (in Northwestern

France) and Santander (in Northern Spain) would receive €1,041,000 ($1.37 million), covering 50% of the costs from EU TEN-T programme

UK– Brittany Ferries is building the LNG-fuelled ferry that will operate between UK and Spain – Grain LNG is evaluating developing LNG truck-loading facilities at their Grain LNG import terminal in the United Kingdom. The

facility is reportedly a high-potential supply point, as tanker trucks could serve both European on-land fleets and vessels operating out of Southern England



Finland– The terminal in Tornio northern Finland will be used to supply the

Outokumpu Tornio steel mill but will also be used to supply ships such as a new icebreaker planned for Tornio and Bay of Bothnia region. The terminal is expected to commence in 2017

– Gasum made the first LNG bunkering in Finland in Dec 2012, bunkering 15 trucks for Viking Grace. She sails between Stockholm and Turku in Finland

– Gasum has made a decision to build LNG terminal in Inkoo and has opted for Fjusö area in Joddböle. The terminal would be provided with marine facilities that also allow the loading of LNG bunker vessels and small LNG carriers engaged on coastal distribution. The terminal is not expected to commence until 2018

Estonia– Port of Tallinn, the leading port in the country is likely to delay providing

LNG bunkering due to lack of demandThe infrastructure could be in place by 2015, but it seems will be on their agenda 2017-2018

Lithuania/Latvia– LNG terminal in Klaipeda is under development and could supply LNG for

bunkering. Poland

– Polskie LNG is building an LNG import terminal at Świnoujście for 2015 commencement. This terminal has a potential to supply LNG as bunker for shipping

Energy security is a very important issue in the Baltic countries. No large natural gas suppliers in Eastern Europe, so Russia is currently a dominant supplier. LNG provides an excellent way to transport gas to the countries, however LNG import terminals have to be built. There are a number of LNG terminals are being built, planned or considered to be constructed in the Baltic countries. These terminals will also be equipped with smaller terminals for local LNG distribution including LNG bunkering facilities.

TalinnHelsinki

Klaipeda

Turku

Świnoujście

Tornio

Inkoo


Forecast of LNG bunkering infrastructure in North American ECA

Seattle

New York

Jacksonville

Duluth

Fourchon

Tacoma

Vancouver

Mississippi river

Sarnia


LNG bunkering infrastructure in North American ECA (1/2)

West Coast– TOTE Express is converting their two RoRo vessels.

Serving Tacoma and Anchorage A bunkering facility is planned in Tacoma responding to the LNG as fuel initiatives by TOTE Express.

– Matson Navigation is building 2 container ships, serving west coast and Hawaii

– LNG bunkering infrastructure has also been discussed in Seattle-Tacoma area

– Washington State Ferries (WSF) has received approval in concept from the U.S. Coast Guard for a conversion of its upcoming Olympic-class ferries. The LNG will be transported by truck from FortisBC’s LNG peakshaving plant in Delta, British Columbia

East Coast– Staten Island is preparing for an LNG bunkering facility

related to the DOT Staten Island ferries project. Possible bunkering could be in New York

– TOTE Express These vessels will be serving Jacksonville Port in Florida and San Juan in Puerto Rico. Crowley Maritime is also building 2 ConRo ships and will be serving the similar route

– Evergas is building 3 LEG carriers that will transport LNG from Rafnes in Norway to Philadelphia

Gulf of Mexico – Shell announced an agreement with Edison Chouest Offshore

to supply LNG fuel to vessels operating in the Gulf of Mexico. Under the deal, LNG transport barges will move the fuel from a Geismar, LA production site to Port Fourchon where it will be bunkered into customer vessels. The Geismar facility, however, is not expected to begin operations until 2016

– Shell plans to install a small scale liquefaction unit at its Geismar facility that will supply LNG along the Mississippi River, the Intra-Coastal Waterway and to the offshore Gulf of Mexico and the onshore oil & gas exploration areas of Texas and Louisiana

– Harvey Gulf is building US’s first LNG bunkering facility at Port Fourchon. Harvey has secured plans to construct and operate the fuelling facility consist of 2 sites. The estimate to complete the fist site is Feb 2014 with the second site following shortly thereafter.


LNG bunkering infrastructure in North American ECA (2/2)

Great Lakes– Aged bulkers in The Great Lakes, Minnesota have

plans for LNG retrofit. Port Duluth, MN are planning for a bunkering facility for the Great Lakes aged bulkers

Shell plans to install a small scale lique unit at its Sarnia facility, Canada that will supply LNG to all 5 Great Lakes, their bordering US and Canadian provinces and the St. Lawrence Seaway

Canada– STQ Quebec ferries are planning to build 3 LNG fuelled

ferries . two of the future ships will be assigned to the Tadoussac─Baie-Sainte-Catherine ferry service, while a third ship—under construction in Italy—will be used for the Matane─Baie-Comeau─Godbout link. These ferries will be among the first in North America to use LNG, and their commissioning is set to begin in 2015. Discussions are ongoing for bunkering in Tadoussac

– LNG bunkering infrastructure has also been discussed in Vancouver area for BC Ferries


Existing LNG bunkering infrastructure in South America

Argentina – Buquebus, the world-first Incat LNG HSLC operates between Buenos Aires and Montevideo. LNG will be transported from the re-

gasification vessel at Eskobar by truck to bunker in Buenos Aires

Buenos Aires


Forecast of LNG bunkering infrastructure in Mediterranean Sea

Spain– A study to help establish a flexible LNG bunkering value chain on

the Spanish Mediterranean coast – Valencia, Barcelona, Cartagena, and Algeciras, would receive €1,044,000 ($1.375 million), covering 50% of costs from EU TEN-T programme

– A study on LNG hub at the Port of Ferrol in Northwest Spain, for Atlantic corridor ships, would receive €602,000 (nearly $793,000), covering 50% of the project’s total costs from EU TEN-T programme

– A study on a project designated Seagas on determining the feasibility LNG bunkering for the Ports of Roscoff (in Northwestern France) and Santander (in Northern Spain) would receive €1,041,000 ($1.37 million), covering 50% of the costs from EU TEN-T programme

Turkey– Turkey is sharpening its emission regulations. While

there is no SOx-ECA yet, they also now require maximum 0.10% sulphur in marine fuel for ships at berth. However, ships in transit through the Turkish Straits without making port calls are not affected by this rule. Turkey has announced their ratification of IMO-MARPOL Annex VI and intends to forward a proposal to the IMO in 2015 for implementing ECA. The potential ECA will cover Turkish Straits and Marmara Sea

Santander

AlgecirasCartagena Valencia

Barcelona Turkish Strait and Marmara SeaFerrol


ShanghaiNanjing

WuhanZhoushan

Source: CIA

Gaolan

Existing and forecast of LNG bunkering infrastructure in Asia-Pacific (1/3)

China– Two LNG-diesel dual fuel tugboats are deployed in the Gaolan

Port in Zhuhai, near Hong Kong.– China Gas Holding (China Gas) plans to develop LNG

bunkering on the Yangtze River this year.– Fortune Oil subsidiary Chongqing Fujian Energy Technology

Company (Fujian Energy) said that it would build several filling stations along the river near Wuhan, Nanjing, and Shanghai

– Kunlun Energy reported that it has signed a strategic agreement with the government of China’s Shandong Province to develop LNG-fueling infrastructure province-wide.

– Shanghai Lonyer Fuels and ENN Energy of Hebei will jointly develop an LNG bunkering supply chain in the nation. ENN Energy is planning China’s first private LNG bunkering station for Zhoushan, with the first 3 million tonne-capacity phase scheduled for completion in March 2016

– Haiqi Ganghua Gas Development has constructed an offshore LNG bunker station into operation along the Yangtze River in Nanjing, capital of Jiangsu province that will be commenced in 2014 The Chinese Ministry of Transport (MOT) has targeted:

By 2015, 2% of the domestic inland fleet operating on LNG dual fuel vessels

By 2020, 5-10% operating on DF vessels

By 2030, 200-500 vessels solely fuelled by LNG



Korea– KOGAS is supplying LNG bunkers to Asia’s first LNG powered

passenger ship, Econuri, at Incheon Port. KOGAS began a trial run on March 7, supplying the LNG bunkers from Songdo Port in Pohang.

– KOGAS also studied potential locations at Busan. KOGAS is also in discussion with Japan Gas Association to supply LNG as fuel to vessels operating on the South Korea-Japan ferry route

Japan– Japan's NYK is to build the country's 'first' tug featuring a dual-

fuel engine that can run on either LNG or HFO built in Japan. Tokyo Gas Co will supply the LNG. No site has been announced for the LNG bunkering facilities

Singapore– Singapore has a strong interest on providing LNG as fuel. A

number of studies have been completed such as LNG bunkering feasibility studies, LNG bunkering operational procedures and standards and also, an MOU was signed between MPA and Port of Antwerp and Zeebrugge to harmonise LNG bunkering standards Singapore

LNG bunkering facilities in Korea

Busan

Incheon



Australia– LNG bunkering could be come online by 2016

according to DNV GL JIP project. The project identified 10 ports to offer LNG

Hambantota

West coast ports

Sri Langka– Sri Langka Ports Authority is planning an LNG bunkering facility

for Hambantota port in the southern part of the country. A strategic plan from the SLPA outlining improvements to be made through 2020 calls for an LNG terminal that would include a gas-fuelled power plant as well as LNG bunkering

India – Currently, there are no LNG bunkering infrastructure available.

However, initial discussion has started between the government and Norwegian government

– The future location may be developed in the west coast because of the growing development of LNG terminals in this region


Forecast of LNG bunkering infrastructure in Middle East

UASC, a formed jointly between Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia and UAE plans to establish an LNG bunkering facility in the Middle East to allow their mega containerships to refuel along the Asia-Europe trade

Shell and DMC (Dubai) have signed an agreement to explore the use of LNG in the UAE and the entire Middle East, North Africa and South Asia Dubai


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Global LNG bunkering infrastructure as of January 2014