Bergen / 14.02.2011 REDUCE EMISSIONS EXPAND POTENTIAL LNG fuel, supply and pricing Stein Petter Eriksen
Bergen / 14.02.2011 LNG A CLEAN, COMPETITIVE FUEL TODAY AND IN THE FUTURE REDUCE EMISSIONS EXPAND POTENTIAL
AGENDA Technology Pricing and cost Emissions Safety the leading small scale LNG company Summary and questions
PROVEN TECHNOLOGY 16 feries In operation since 2000 3 coast guard vessels 4 offshore supply ships In operation since 2003 2 tankers No interruption of service due to LNG system By the end of 2010, nearly 40000 transfers of LNG have been made without incidents Owners and operators using LNG are ordering more LNG vessels presentation 2011 / PAGE 4
THE LNG VALUE PROPOSITION REDUCE Cost Emissions EXPAND Safety Brand value presentation 2011 / PAGE 5
REDUCE COST: Company presentation - 2011
REDUCE COST: NATURAL GAS HAS DEMONSTRATED CONSISTENT COMPETITIVENESS European spot prices, daily quotes, Euro / MWh 70 60 50 40 30 20 10 UK natural gas Brent Gasoil Fuel oil Propane 0 jan. 03 jan. 04 jan. 05 jan. 06 jan. 07 jan. 08 jan. 09 brutto varmeverdi presentation 2011 / PAGE 7
REDUCE COST: Company presentation - 2011
REDUCE COST: Company presentation - 2011
REDUCE COST: TOTAL PRICE IS A PRODUCT OF Volume (falling marginal cost) Bunkering solution From shore From barge Bunkering time and volume Choice of terminal technology Export terminal price, including terminal cost Company presentation - 2011
REDUCE COST: THE COMPETITIVENESS OF NATURAL GAS The initial fuel cost is low Taxes is low No need for exhaust gas cleaning An LNG propulsion system is virtually maintenance free and self- cleaning Company presentation - 2011
REDUCE COST: THE COMPETITIVENESS OFNATURAL GAS *Fuel consumption approx. 9000 MT/year Average Platts Jan 10 Jan 11 Bunkering in Norway Fuel cost ex. terminal and bunkering cost Company presentation - 2011
REDUCE COST: NATURAL GAS IS A POWERFUL FUEL Energy density LNG MGO HFO 10 10,5 11 11,5 12 12,5 13 13,5 14 kwh/kg lower heating value presentation 2011 / PAGE 13
REDUCE COST: EFFICIENT COMBUSTION LNG- fuelled engines typically have 5 10% better efficiency than oil- fuelled engines High methane number, allowing a high power ratio within the knocking margin less noisy and less corrosive combustion than traditional marine fuels Nytt bilde - Rolls Royce? presentation 2011 / PAGE 14
REDUCE EMISSIONS: TWO VESSELS TWO DIFFERENT FUELS presentation 2011 / PAGE 15
REDUCE EMISSIONS: SIGNIFICANT ENVIROMENTAL BENEFITS Compared to oil: CO 2 NOx SO 2-25% - 90% - 100% - 100% Climate Health/vegetation LNG is the cleanest marine fuel Soot/particles Health/vegetation Health/vegetation presentation 2011 / PAGE 16
EXPAND SAFETY: LNG IS A SAFE FUEL Non- toxic, no smell, invisible Lighter than air evaporates rapidly to non- flammable concentrations Ignition temperature > 500 C (vs diesel 250 C) The safest of all liquefied/gaseous fuels Company presentation - 2011
EXPAND BRAND VALUE: WHAT IS YOUR CHOICE? Going for LNG demonstrates a willingness to act on behalf of the environment LNG helps build a responsible profile YOUR LOGO? Company presentation - 2011
Bergen / 14.02.2011 GASNOR THE LEADING SCANDINAVIAN SMALL SCALE NATURAL GAS COMPANY
GASNOR KEY FACTS Natural gas pioneer established 1989, first gas delivery 1994 50 employees ISO 9001 and 14001 certified Revenue*: 600 MNOK (73 mill euro) Profit before tax*: 50 MNOK (6 mill euro) Total assets*: 1150 MNOK (140 mill euro) Equity*: 300 MNOK (36 mill euro) * Per 31 December 2009 presentation 2011 / PAGE 20 20
WESERVE CUSTOMERS IN THREE MAIN SEGMENTS Industry Transport Buildings Residential distribution network in Karmøy/ Haugesund area presentation 2011 / PAGE 21
A WELL ESTABLISHED INFRASTRUCTURE LNG supply capacity: 300 000 tonnes/year through 3 LNG production plants 30 terminals 16 semitrailers 2 tankers presentation 2011 / PAGE 22
OWNED BY LEADING ENERGY COMPANIES 20 % 41 % 14 % 7 % 14 % 4 % presentation 2011 / PAGE 23
HOW WE OPERATE LNG production We build and own facilities, and produce, store and distribute «doorstep» Transport Storage Regas Distribution We build gauging and regulation equipment at the customer site We offer assistance in planning, specifyig and installing required customer equipment We offer training of personnel We test, start and deliver a turn- key natural gas installation presentation 2011 / PAGE 24
GASNOR TAKING LNG FROM ZEEBRÜGGE IN MAY 2010
GASNOR TAKING OUT LNG FROM HUELVA WITH SMALL SCALE TANKER IN AUGUST 2010
FIRST LNG FROM HUELVA,SPANIA Bergen / 14.02.2011
BUNKERING OF CORAL METHANE BY PIONEER KNUTSEN AT KOLLSNES
OUR STRATEGY: A KEY SUPPLIER OF LNG TO SHIPS IN NORTHERN EUROPE LNG Terminal under development in Gothenburg Agreement signed for LNG terminal in Hirtshals Targeting the Baltic region LNG bunkering facilities Existing Planned
THERE IS A WELL- ESTABLISHED LNG INFRASTRUCTURE IN EUROPE Tapping contracts from large European LNG-terminals are in place New terminals can be made available in shorter time than normal lead time for a new ship LNG can be supplied to ships in most of Europe Bunkering terminal Regas terminal Small scale Production
THE TERMINAL WILL BE SUPPLIED FROM SEVERAL SOURCES is already sourcing LNG from European terminals Regas terminal Small scale Production
SUMMARY LNG is a clean and competitive maritime fuel today and tomorrow is the LNG pioneer, uniquely positioned for expansion in Northern Europe LNG will REDUCE operational cost and enviromental footprint, and EXPAND potential and profitability presentation 2011 / PAGE 32