Gas - the energy source of the future Small scale LNG - the regional solution for gas distribution Oslo 31 May 2013
I.M. Skaugen SE a company with a hundred years of history Incorporated in 1916 Skaugen family Managing 38 vessels More than 20 nationalities 2000 employees USD 240m annual turnover and 461m assets 2
a history of innovation and partnerships 1916-1938 1946-1959 1960-1968 1968-1988 1971-1980 1981-1988 Early adopter of Steam and Diesel technology, first tanker Conversion of ships to refugee carriers after WWII, First Diesel Electric engines Pioneer in bulk shipment of cement and large scale ship-to-ship transfers Pioneered the specialised cruise concept - RCCL State-of-theart Rig and Supply vessels for offshore oil&gas activities New design concept: «Pure Car Carrier» 1988-1996 1996-2000 2003 2007 2009-2012 First Sinoforeign JV Design and ordering of the Super-Coolers ethylene carriers First purposebuilt lightering tankers and pioneered STGS activities in the US gulf Start of design and concept of smallscale LNG Pioneering gas transportation by developing LPG/Ethylene/LNG ( Multigas ) vessels 3
Solid long term niche strategy, long-haul petrochemical and regional LNG trade; - Gas transportation is our core business Overview of liquefied gases and their origin Characteristics IMS fleet Natural Gas production Methane Ethane Propane Butane Naphta Gas Oil Liquefaction plant Optional gas feeds Optional liquid feeds Liquefaction plant Steam cracker Steam cracker Petchem gases LNG Ethylene Propylene VCM 1 Butadiene 1 Boiling temp -163-104 -48-15 -4 Vessel type 2 LPG/E/LNG LPG/E LPG 6x Multigas Avg. age 2.3 years 2x 12,000 cbm 4x 10,000 cbm 3x Wintergas Avg. age 4.0 years 3x 5,800 cbm 6x Somargas Avg. age 10.0 years 2x 10,000 cbm 4x 8,500 cbm Petroleum Refinery Crude Oil, petroleum refinery LPG -43 2x Noble Avg. age 23 years 2x 8,200 cbm 1x Vintage Avg. age 29.5 years 1x 8,200 cbm 1 Produced only by cracking any of the optional liquid feeds 2 Boiling temperature of gas determines type of vessel that can transport it and the cost e.g. LPG/E can transport LPG and Ethylene, but not LNG 15% of World s Ethylene fleet 4
Organized through strategic partnerships and joint ventures around our core business Manage assets with a book value of USD461 million and with gross turnover of USD240million. Core Business Liquefied Gas Transportation - Norgas LPG transportation/petrochemical gases/chemicals/small Scale LNG Abt 2000 employees world wide of which 700 in our core business 38 vessels in operations of which 18 gas carriers our core fleet Listed on the Oslo stockexchange; ticker IMSK Marine Transfer Activities Crude oil lightering and transfer services LNG transfer services LNG terminal ops and mgt China activities Crew training and recruitment LPG transport Cryogenic equipment Mnf JV 5
IMS committed to developing Small scale LNG IMS positioning Gas is the «fuel of the future» With the right technology, gas in the form of LNG can be made available as easy as any other fuel The key missing link was the ships; all other technologies like LNG plants&terminals, LNG trucks and other distribution equipment were available «off the shelf» By building our fleet of now six LNG carriers, the shipping element is also now available «off the shelf» Due to our Multigas design, the ships can trade in the petchem market and then be ready for LNG as and when needed 6
SPT a world leader in ship-to-ship transfer of LNG Innovator and leader in ship-to-ship transfer of LNG SPT, did perform the first ship to ship transfer of LNG ever made and has done several more since then SPT has developed equipment and procedures to perform safe ship-toship transfer of LNG SPT has a global network of bases close to all major bunkerig hubs. SPT is a JV between IM Skaugen and Teekay Corp. 7
Tons per year Small scale LNG making gas as easy available as any other fuel for regional customers Yearly Capacity MG12K and MG10K 1 000 000 900 000 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 0 MG12K MG10K 0 200 400 600 800 1000 1200 One-way distance NM Ideal for regional supply up to 1200 nm from source Several hundred thousands of tons yearly capacity with one vessel Supply directly to end-users Providing an energy solution previously not available 8
One Multigas shipload (12 000cbm) of LNG can; - provide fuel for about 6 000 cars for a year - provide power for more than 4 100 housholds for a year
Small scale LNG markets regional distribution Gas where there is no gas - Stranded customers too small or too far away from pipelines and currently using other fuels like diesel and fuel oil. Gas where it is needed yesterday - Developing regions - where speed of getting energy supply in place will impact economical growth and laying a pipeline will take time... 10
«Stranded» customer key regions for future growth 11
Emission values [%] The LNG bunkering market Gas when it is needed in its liquid form as LNG LNG as marine fuel will eliminate SOx, reduce NOx with 80-90% and cut CO2 with 25-30% compared with fuel oil and diesel Diesel engine running on MDO, 1% Sulphur content 120 Dual-fuel engine running on gas New supply chains will needed as ECA zones will be expanding. A MG vessel will be the ideal bulk breaker to supply LNG to bunkering hubs or can act as the bunkering vessel 100 80 60 40 20 0 NOx SOx CO2 Particulate Key bunkering hubs Source: DNV 2011 Report, Greener Shipping for North America 12
Ship-to-ship bunkering of LNG A tried and tested methode for the safe transfer of LNG Bunkering of LNG will be no different compared to normal bunkering LNG bunkering will be easy since we know how complicated it is Hoses will be used - as safe and reliable as any arm based solution for LNG Based on current legislation for marine STS and SIGTTO 13
Small scale LNG supply chain LNG plant LNG terminal Small scale LNG ship End user Rail car Local storage Semi-trailer Small scale LNG Terminal 14 Pipeline
The innovative Multigas vessels Key data, MG12.000 cbm; LOA 152,3m B 19,8m Draft LNG 6,3m DWT 12.570t Speed 17 knots Pump Cap. 2 x 640 cbm/hour Key features; Designed for loading at conventional LNG terminals Re-liq unit to handle boil-off Bow-thruster and becker rudder for high manoeverability Sloshing not an issue due to Type-C tanks Cargo system designed for easy change of grade On-board Nitrogen plant 15
12,000 cbm Multigas Main Data Loa: 152,3 m Lpp: 142,4 m B: 19,8 m D: 11,5 m T D : 6,7 m T S : 8,3 m T LNG : 6,3 m Germanischer Lloyd * ; DWT: 12,570 GT: 11,320 NRT: 3,395 Main engine: Shaft generator: Aux. engines: Service speed: 8,200 kw 1,900 kw 3 x 920 kwe 17,0 knots Cargo tank no.1: Cargo tank no.2: Max pressure: Max density: 6,000 m3 6,000 m3 5.2/3.8 bar g 0.97 ton/m3 Min temp.: - 163 C Pump capacity: 640/640 m3/h 100 A5, E, Liquefied Gas Tanker Pump Type-2G, head: IW, BWM MC AUT, RI, INERT 120/220 mlc
Loading at a «Q-Max» LNG terminal LNG PLATFORM LNG PLATFORM LNG/ETHYLEN/ LPG PLATFORM
The World s Largest Small Scale LNG Fleet Vessel Capacity (m 3 ) Delivery Built Class Norgas Innovation 10 000 1/2010 China GL Norgas Creation 10 000 8/2010 China GL Norgas Invention 10 000 1/2011 China GL Norgas Conception 10 000 12/2011 China GL Norgas Unikum 12 000 4/2011 China GL Bahrain Vision 12 000 11/2011 China GL
IMS offering growth opportunities in Small scale LNG LNG value proposition World s largest small scale LNG fleet 2x12,000 cbm and 4x10,000 cbm LNG/E/LPG vessels and for immediate availability Key enabler for; Regional supply chains within 1,200 nautical miles of LNG source Early entry to LNG marine bunkering markets Small scale LNG Key advantages: Opens new LNG markets; gas and liquids More flexible and scalable Cost and capital efficient Direct to end customer Un-bundles the supply chain Through SPT LNG lightering and STS, including bunkering solution LNG terminal operations 19
The I.M. Skaugen Company Founded in 1916 Listed on Oslo Stock Exchange (ticker: IMSK) Steady as she goes