George Polychroniou Poseidon Med II Project Manager Executive Director Strategy, Development, Administration & IT, DEPA S.A.

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1 POSEIDON MED II WORKSHOP: COMMON STRATEGIES TO PROMOTE LNG AS MARITIME AND ROAD TRANSPORT FUEL IN MEDITERRANEAN COUNTRIES Venice, George Polychroniou Poseidon Med II Project Manager Executive Director Strategy, Development, Administration & IT, DEPA S.A.

2 Why LNG is a real perspective for the shipping industry in Greece & SE Europe?

3 An effective development of a small scale LNG market is possible in the area Tradition - Greece is a world leader in shipping Strategic geographical position Important internal short sea activity (53 Islands with population > ports) Need for LNG for other uses (potential for gasification of remote areas) Availability of LNG supply / infrastructure (LNG Terminal Revithoussa)

4 Piraeus on the Global Map Piraeus is a key commercial port in Global Bunkering and a bunkering center

5 Revithoussa LNG Terminal Revithoussa LNG terminal, is a strategic infrastructure, which is currently undergoing a significant upgrade, in terms of LNG capacity and marine facilities. This unique asset of Greece, is strategically positioned to provide various Greek and Mediterranean ports, with the necessary LNG quantities. Sixteen years of safe terminal operation and open access to all users, offers a practical solution towards the adoption of LNG as an alternative fuel for the shipping industry, while contributing to the development of small scale LNG applications to off-grid consumers {,000 m3 LNG} LNG Volumes unloaded at Revithoussa Terminal

6 LNG for shipping needs smaller scale LNG Infrastructure Gas exploration Liquifaction Large scale shipping Hub Evaporati on Pipeline End user (NG) Small scale shipping Mid scale storage Evaporation End user (NG) Truck transport Small scale storage Evaporation End user (NG) Ship bunkering Poseidon Med II - brings together top experts from the marine, energy and financial sectors to design an integrated LNG value chain and establish a well-functioning and sustainable LNG market. Source: Wartsila

7 Key markets for small scale LNG Marine Fuel Road Transport Fuel Off-grid customers The historically high price differential between natural gas/lng and low emissions oil products necessary to meet the growing restrictions on ship emissions, are key drivers for using LNG as Marine fuel. LNG is increasingly becoming the most economical, cost-effective, and environmentally friendly alternative to conventional transportation fuels for heavy-duty trucks and fleets. LNG can compete favorably in the heating, commercial, and industrial sectors with conventional fuels such as diesel and propane in areas not currently served by regional pipeline gas infrastructure.

8 Pre Conditions for effective LNG Bunkering Retrofit of Vessels (Funding & Financial Tools) Demand Supply LNG Supply Security Competitive LNG Pricing Well Designed Supply Chain Cooperation between all involved Stakeholders

9 Chicken / Egg situation Ports Infrastructure vs Vessels Installation? Poseidon Med II project could be the catalyst for make it happen

10 Poseidon Med II LNG Bunkering Poseidon Med II is a key European project aiming to take all the necessary steps towards adoption of LNG -as marine fuel- in Eastern Mediterranean Sea while making Greece an international marine bunkering and distribution hub for LNG in South Eastern Europe.

11 Poseidon Med II Region of Action 6 Ports Piraeus Patrai Heraklion Igoumenitsa Limassol Venice 4 out of 5 Greek Core Ports 3 Countries Greece Italy Cyprus

12 Poseidon Med II - Partners Energy Ports Shipping Technical/Financial DEPA (GR) (Project Manager & Coordinator) DESFA (GR) (Technical Coordinator) Piraeus (GR) Heraklion (GR) Patras (GR) Igoumenitsa (GR) Limassol (CY) Venice (IT) Minoan Lines (GR) Blue Star (GR) Attica Ferries (GR) ANEK (GR) Neptune (GR) Hellenic Seaways (GR) Arista (GR) Lavar (CY) HSSA-EENMA (GR) SEEN (GR) Hellenic Lloyd's (GR) OceanFinance (GR) CERTH-EKETA (GR) EPE (GR) NAP (GR) Rogan (GR) R.R. Panfido (IT) Bunkernet (CY)

13 Poseidon Med II Activities Project Organization Ports & LNG Terminal Infrastructure Act. 1-3 Act Coordination Management Dissemination Social/Public Consultation Awareness Environmental/Safety/Site Studies Ports Master Plans updating Supporting/Preliminary/Detailed Design Studies Tender documents Vessels Infrastructure Act. 14 Technical studies for selected vessels Pilot case (Venice) Financial aspects Act. 15 Act. 4-5 Executive Design and Construction of an Innovative LNG Vessel Installations Financial Assessment - Financial Instruments for the Global Projects Investments Regulatory framework Act. 13 Adaptation of the Regulatory Framework Sustainability-Synergies Act Assessment of Efficient Supply Chain/Synergies Sustainable LNG Pricing Patterns

14 Poseidon Med II Progress HAZID Workshops at the ports of Piraeus, Patra, Igoumenitsa, Heraklion and Limassol Stakeholders Event at Heraklion, Limassol and Venice Assessment and consultation process with selected shipyards Creation of special working groups for the formulation of Regulatory Framework (Ministries of Shipping, Transport, Economy) Selection of 10 candidate vessels for a process of retrofitting that will convert them as capable of using LNG as a fuel. Completion of the truck loading station preliminary layout Specifications for the design of the LNG Feeder Market research for other NG uses at the ports involved in the project, Greek mainland and Cyprus Visit Limassol and attend meetings with stakeholders to explore synergies

15 Poseidon Med II Key considerations Well known Project in the market Wide interest in the project from local and international players Need for intense effort for adapting the required legislative framework European & national support on investments for shipowners & infrastructure developers Attention to infrastructure permitting and public acceptance Rapid development of LNG technology provides new options Pilot case will boost the implementation of the necessary infrastructure Signs that Cruise shipping could be a very promising market Economic benefits for final users depending also on economies of scale

16 With Poseidon Med II the East Mediterranean sets sail into the LNG era turning Greece into an LNG Bunkering hub in SE Europe. THANK YOU FOR YOUR ATTENTION!