1. The Impact of the Growing LNG Trade on the Conventional Oil Tanker Industry

2. Guide to the presentation
Introduction
Energy Consumption Overview & Future Trends
Natural Gas Segment of Total Energy
LNG Fundamentals
LNG Impact on Oil Tanker Industry
Conclusions

3. 1. Introduction

4. ANGELICOUSSIS SHIPPING GROUP THE FLEETNO
DWT
Operating 22
2,510,418
On Order 6
1,032,000
Total 28
3,542,418
DRY CARGO
TANKERS
LNG NO
DWT
Operating 31
7,227,251
On Order 2
640,000
Total 33
7,867,251
(Including Managed vessels) NO
DWT
Operating -
On Order 4
292,400
Total
Fleet as at 13 April 2005

5. 2. Energy Consumption Overview & Future Trends

6. Energy Consumption Overview

7. World Primary Energy Consumption
2002

8. Energy, Million Tons of Oil Equivalent (MTOE)
Source : IEA 2004

10. 3. Natural Gas Segment of Total Energy

13. Proven Natural Gas Reserves
Source : IEA 2004
Total: 180 tcm as of Jan 2004

14. LNG Pipeline Vs LNG Carrier

16. 7% per year growth ( )
LNG is about 6% of worldwide natural gas consumption and about 94% of natural gas consumption in Japan.

17. LNG Demand through 2015
Source : Gastech 2005

18. LNG Supply through 2015
Source : Gastech 2005

19. 4. LNG Fundamentals

20. Characteristics of the “OLD” LNG Market
Individual Projects
Long Term Contracts
Shipping Tightly Linked
Reliability Paramount Concern
Relatively Slow Growth

21. Characteristics of the “NEW” LNG Market
New Growth Phase – Common View
Many More Projects
- Expansions
- New Green Field
Cross - Project Competition
More Players and Assets
Increased Cost Focus

22. More Political Government Ownership
Every Liquefaction plant has host government ownership interest (Except in Kenai, Alaska)
Governments benefit by :
Tax Revenue
Job creation
Royalties
Infrastructure Improvements

23. Public Opinion : “LNG is environmentally friendly – but scary”

24. Public Opinion : “LNG is environmentally friendly – but scary”
Facts :
• LNG facilities and terminals have a 45-year record of operation without serious incident
• Worldwide, there have been more than 33,000 LNG carrier voyages without serious incident
• LNG is not explosive because it is not stored under pressure, and it is not toxic
LNG itself does not burn because it contains no oxygen, which is needed for combustion.
• If LNG is released into the air, the liquid immediately warms up and converts back to a gas. Initially, the gas is colder and heavier than the air, so it freezes any water vapour in the air. This can temporarily create an icy fog. As the gas continues to warm, it dissipates and rises harmlessly into the air.

25. Competitive Alternatives - 1. CNG
CNG is a domestically-produced by product of crude production or from gas wells . At the moment, th automotive industry uses natural gas that has been compressed (called compressed natural gas or CNG) and stored in high-pressure cylinders.
             

26. Competitive Alternatives - 2. GTL
Gas To Liquids (GTL) production is based on the Fischer-Tropsch process, which involves the conversion of natural gas to higher hydrocarbons like kerosene, gasoline, and naphtha, depending upon the operating conditions and catalysts used

27. Competitive Alternatives - 3. Bulk Balls - Gas hydrates
Gas clathrates, commonly called gas hydrates, are ice-like mixtures of gases and water, in which the gas molecules are trapped within a framework of cages of water molecules. Each volume of hydrate may contain as much as volumes of gas.

28. 5. LNG Impact on Oil Tanker Industry

29. Oil Routes Oil Routes, 2004 Oil Routes, 2010
Source : DNV MARKET OUTLOOK - Shipping Market Development Trends
Seaborne trade with other commodities will be increasingly dependant on China, but within the next 10 years the supply situation will be basically the same as today.

30. Oil Trade flows 2002 & 2030
Source : IEA 2004

31. Gas Routes Key Global Gas Trades, 2004
Expected Global Gas Trades, 2010
Source : DNV MARKET OUTLOOK - Shipping Market Development Trends
International trade in LNG is set to double to 200 Mt in The strong growth is also expected to continue beyond Some industry watchers believe a global LNG trade of 300 Mt in 2020 is a distinct possibility. Based on the supply/demand situation two markets will develop, one Pacific and one Atlantic Basin market.

32. Gas Trade flows 2002 & 2030
Source : IEA 2004

34. Oil & Gas Demand as a % of Total Energy Demand

35. World Energy Consumption by Fuel

36. Constraints To Growth Financing Man Power Management
Sea Going Officers & Crew
Shipbuilding Capacity

37. Available Newbuilding Capacity 1975-201012 10
S. Korea
Japan 8
China
MCgt 6
Europe 4
ROW 2
1975
1980
1990
2000
2005
2010
SAI Source: AWES

38. 6. CONCLUSIONS

39. CONCLUSIONS World Energy demand will continue to grow strongly
All forms of energy supply will be needed to meet this growing demand
Competition will be for building berths, man-power, financing, – impacting on costs and rates
China’s continuing development will increase energy demand, but also add to ship production base.
The LNG industry will not cannibalize the Oil Tanker industry