Democratizing LNG Lowering the cost of small and mid-scale LNG solutions

Rainer Kersting: October 13th 2016

•  AG&P builds the world’s infrastructure in Lego-like

pieces called modules from its 2 state-of-the-art manufacturing facilities, South of Manila, Philippines, covering 150 hectares of land and able to produce 125,000 tons of assembled modules per year

•  AG&P modularizes refineries, LNG apparatus, petrochemical, mining and water plants and other complex facilities and products, with some modules weighing several thousand tons and touching 10 stories tall

•  Clients come to AG&P for its heritage of quality execution, its wide portfolio of credentials, the high productivity of its English-speaking workers and world-leading health and safety culture

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116-years in the global infrastructure industry

Unrivalled experience

AG&P has unrivalled experience in delivering state-of-the-art, modularized products and support services to vessels, projects and plants. We serve the energy, natural resources and industrial sectors worldwide

150 hectares of heavy fabrication and assembly space across two facilities, each with a deep sea port - one of the largest such operations in Asia

125,000 tons of annual production capacity delivered through advanced technology, machinery and a layout that maximizes efficiencies

years of experience in designing, building and delivering infrastructure making us the most experienced company of our kind in Asia 116

M safe man-hours consecutively without Lost Time Incident (LTI) achieved through our consistent commitment to safety (@ August 2016) 39 M man-hours over 8 years with only one minor LTI, setting world-leading safety standards (@ August 2016) 68

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Re-purposed state-of-art manufacturing facilities - heart of AG&P

•  Situated in a sheltered harbor one hour south of Manila in the Philippines, AG&P has two manufacturing facilities covering 150 hectares, each with a deep-sea port

•  All the equipment is new. Each facility is self-functioning with its own state-of-the-art fabrication, painting, blasting and other shops

•  An integrated system across the yards increases fabrication capacity at reduced man-hours, resulting in greater productivity and lower costs

•  Highly advanced automation throughout the manufacturing process ensures material traceability and accurate progress reporting

•  Manned by a highly-skilled, English-speaking workforce, with international experience operating to the highest quality and safety standards

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Pioneer in LNG supply chain solutions

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•  Lower prices have resulted in an environment that is conducive to small- and mid-scale LNG and have been the driver of new technologies for LNG infrastructure development

•  There is an immediate demand for this infrastructure in archipelagic Indonesia and, soon, in the Philippines and within widely distributed population centers, as well as in North America, Europe and India

•  Growing from its comprehensive processes, control systems and the enormous scale of its modularization business, AG&P is:

•  Pioneering solutions for the use of LNG for power, bunkering, cold storage, transportation

•  Offering unique, standard products for downstream and LNG-related energy sectors as a licensee or partial or whole owner

5-year Japan LNG price

•  The downturn in oil and gas prices has made LNG more affordable to users.

Strategic LNG partnerships, licenses, investments plus heritage

•  AG&P recently has created a world-leading franchise in designing, building, operating and even owning the supply chain of LNG:

1.  Secured only one of 3 global licenses (and the only such license in all of Asia) to build LNG membrane tanks, the dominant system for 80% of the LNG tanks or the world’s vessels plus now onshore tanks as well. AG&P holds this license from GTT, the highly-regarded French company

2.  Invested in August 2016 in GAS Entec, the world’s leading small-to mid-scale LNG engineering firm based in Busan, augmenting AG&P’s design skills relating to LNG

3.  Creating partnership with the world’s top company for LNG equipment, vessel propulsion systems and LNG-fueled engines, to integrate their equipment into AG&P’s designs for vessels and other LNG-related products

4.  Decided to build on its own account a 4,000 cubic meter, self-propelled LNG storage and transport vessel that will operate in Indonesia

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There is no other company in the world that has AG&P’s unique capabilities and credentials in the LNG space, coupled with one of the largest, best-regarded modularization operations globally

•  AG&P is combining its modularization capabilities and unique partnerships with engineering and technology partners to pioneer industrial solutions for the small-scale LNG receiving and distribution

•  With this unique amalgamation of strengths, AG&P has moved beyond being an outstanding manufacturing company to lead as a small-scale LNG and industrial solutions provider and modular products company for the energy, resources and civil sectors

•  We have the design house, the re-purposed yard, the tank license and the strategic partnerships to:

•  Build all the LNG vessels several months faster than anyone else. For example, AG&P expects to build its 4,000 cubic meter container in 16 instead of 24 months

•  Provide access to one-stop-shop from cutting edge engineering, proprietary technology to integrated project delivery

•  Offer single point of ownership •  Work with highly-skilled and diverse, experienced crafts •  Leverage world-leading safety and quality standards

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AG&P’s singular solution offers speed, flexibility, economic value

Bridging LNG supply chain gap

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AG&P product portfolio

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4,000 m3 LNG carrier (propeller) Length 107.78 m

Breadth 28.00 m

Depth 4.50 m

Design draft 2.00 m

LNG cargo tank capacity 4,000 m3

4,000 m3 LNG carrier (thruster IMO DPS 2) Length 102.90 m

Breadth 24.60 m

Depth 6.00 m

Design draft 2.00 m

LNG cargo tank capacity 4,000 m3 at 95%

4,000 m3 LNG carrier (propeller)

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4,000 m3 LNG carrier (thruster IMO DPS 2)

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26,000 m3 FSU

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Autonomous Transfer System (ATS) leverage

•  Fully Autonomous LNG Transfer System for LNG export/import terminals

•  No jetty, no mooring berth structure, no breakwater

•  Simple Interface to onshore/offshore LNG storage using a hose flange connection only

•  Low operation expenditure - no propulsion or large machinery required; not manned between ops

•  Favorable motion characteristics that enables high operational regularity

•  Floating unit is tsunami and earthquake resistant

•  Safe with quick disconnection. Capability; not normally manned during LNG transfer

•  Generic design that allows for the same ATS to be used for any LNG Terminal

•  Re-locatable mobile infrastructure that can be towed by any standard tug

•  Scalable design that straddles small-scale LNG as well

Courtesy: 7 Seas

Reinforcing LNG supply chain network viability

> 50% reduced cost compared to a traditional jetty-based onshore LNG terminal

> 75% reduced cost at exposed terminal locations requiring breakwater structure

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With short construction time and moderate infrastructure, a complete ATS LNG terminal solution can be offered at:

Courtesy: 7 Seas

Jetty-less LNG terminal solution vantage

•  Jetty-less - floating LNG transfer solution allows for no fixed expensive infrastructure

•  Tsunami-resistant - floating solutions are tsunami and earthquake resistant

•  Environment - small environmental footprint as there are no fixed structures that come in the way of fishing activities

•  Generic design - standard re-usable ATS design for multiple build-outs and locations

•  Own or lease - standard technology design package with flexibility for client to either build at preferred yard and optimize cost or take on lease

•  Safety - unmanned during LNG transfer, safe & quick disconnection capability - terminal leaving ship

Courtesy: 7 Seas

Infrastructure Reimagined & Delivered