1. LNG Bunkering Summit What’s Happening in North America
Keith Meyer

2. North American Gas Supply (Source: McKinsey & Co.)
CONFIDENTIAL

3. Global LNG Bunkering Demand
Europe and the Baltic Sea
Annual North America demand projected to reach 559 to 869 million LNG gallons by 2020 (Equates to 1.5 to 2.4 million LNG gallons per day)
Japan and Korea
North America
0.07 – 0.09 million
1.4 – 2.2 million
China
Middle East and India
0.3 – 0.5 million
0.9 – 1.4 million
0.3 – 0.8 million
0.3 – 0.7 million
Southeast Asia
0.4 – 0.7 million
South America
Australia and New Zealand
0.3 – 0.4 million
0.1 – 0.2 million
LNG bunkering demand 2012
LNG bunkering demand 2020
Source: DNV GL.
CONFIDENTIAL

4. Global Shipping - Trade Routes
In a global shipping market, North America may become an important fuel stop.

5. US Marine Bunkering – Top 10 States
Source: Pace Global, based on 2011 EIA data.

6. Announced NA LNG Bunkering Projects
Associated with large scale facility:
Small scale stand-alone:
CONFIDENTIAL

7. Major LNG Marine Demand News
Company
News
Harvey Gulf International Marine has prepared the launch of the first of at least six natural-gas/diesel fuel offshore supply vessels. These ships will be based out of Port Fourchon, LA, which has vessel movement averaging 270 ships per day.
TOTE has evaluated options for fueling their LNG fueled container ships and is converting two 839-foot vessels to LNG/diesel dual-fuel operations. Each ship will have twin 900-cubic-meter LNG tanks (476,000 LNG gallons per vessel).
Seabulk Tankers Orders Two LNG-Ready Product Tankers from NASSCO. San Diego shipyard General Dynamics NASSCO has entered into a contract with Seabulk Tankers, a wholly owned subsidiary of SEACOR (NYSE: CKH), for the design and construction of two LNG-ready product tankers to operate in the Jones Act market.
Crowley Maritime has ordered as many as eight new petroleum tankers that are constructed with consideration for the use of LNG as fuel in the future.
Matson has recently ordered two 4,000 TEU LNG-fueled ships with the option for three additional ships.
Horizon Lines has proposed to convert two 801-foot container ships to LNG/dual-fuel operations.
United Arab Shipping Company has ordered ten 18,000 TEU LNG-ready vessels with options for seven additional ships, totaling more than $2 billion. An 18,000 TEU ship is estimated to consume more than 115,000 LNG gallons per day.
Source: Press releases; Westlake Securities market research.

8. Bridging natural gas supply and High Horsepower demand.
Providing LNG “time and place utility” for High Horsepower fuel.
LNG where needed, when needed, and in the quantity needed.
Developing reliable supply through a network of intermodal delivery infrastructure and strategic storage depots.
LNG America Target Asset Base
Markets
HD Trucks
Liquefaction
Transport and Logistics
Storage
Asset based infrastructure
Marine
Drill Rigs
Mining
Rail
LNG Production, Transport and Logistics, and Delivery

9. LNG Gulf Coast Supply
LNG from North America’s largest single LNG supply point:
Over 30 million gallons per day of LNG production capacity under construction with over 200 million gallons of LNG storage.
Sabine Pass provides central access to U.S. Gulf Coast.
Provides for tremendous growth in domestic bunkering and fueling business.
Economies of scale provides competitive fuel and higher reliability.
Cheniere’s Sabine Pass LNG facility fully approved, financed, and under construction.

10. US LNG as Marine Fuel – Feasibility Study
LNG America feasibility study conducted to determine viability of U.S. LNG as global marine and HHP fuel.
LNG bunkering happening globally and coming to the U.S.
Adoption rates are impacted by ship type and service routes.
“Soft side” includes operating policies approved by Port & USCG; significant progress in Europe provides blueprint.
Demand will be slow at the start, but will grow steadily.
Rate of change is impacted by availability of LNG bunkering supply.

11. LNG America is centrally positioned on the US Gulf Coast
Major U.S. Gulf Coast Ports
Texas and Louisiana have nine of the top 15 ports in the U.S.
At 4 MTPA, the Port of Houston area is the largest bunkering market in the U.S.
LNG America is centrally positioned on the US Gulf Coast

12. Offshore Service Vessels (OSV’s)
LNG fueled offshore service vessels (OSV’s) are expected to serve the hundreds of offshore platforms in the Gulf of Mexico.
Harvey Gulf has recently ordered six LNG powered Offshore Service Vessels (OSV’s) as sketched above, plus have options for four more. These 310 foot long vessels serve 31 floating drilling units, 29 jackups and 9 platform rigs.
CONFIDENTIAL

13. Hub and Spoke Supply Chain
Storage and Fueling Depots
Marine
Road/Rail
CONFIDENTIAL

14. Make LNG bunkering look like oil bunkering
Common LNG Bunkering Methods
The common bunkering methods used for oil bunkering will also be used for LNG bunkering (Truck-to-Ship (TTS), Tank/Pipeline to Ship (TPS), Ship to ship (STS)).
Make LNG bunkering look like oil bunkering

15. Facility Evolution - Vessel
Coast Guard approved concept of LNG bunker barge.
Tanker barge serves as shuttle vessel and bunker vessel.
Ability to perform “Just In Time” bunkering service.
US waterways very accustomed to barge traffic.
CONFIDENTIAL

16. Challenges of Getting into Operation
Developing a blend of marine competency and LNG competency.
Operating procedures and practices
Look to new existing policies in EU,
Adapt to fit U.S.,
Educate and get “buy-in”.
Developing the industry standard
Coordination with large scale operations
Know what is important, and when it is important.
Sensitivity to the local communities.
Time of day; traffic issues
Sensitivity to marine customer issues.
Our main purpose may be to fuel, but theirs is not.

17. LNG Global Gas Industry LNG Global Fuel Industry
Communicate the Benefits of LNG
Historically
Emerging
LNG Global Gas Industry
Gas and electric utilities
LNG Global Fuel Industry
High horsepower (HHP) engines
Two major industries, Natural Gas and HHP engines, are coming together using LNG as the bridge.
Communicate, Cooperate, Coordinate
CONFIDENTIAL

18. LNG America - Conclusions
LNG Bunkering in North America is beginning to happen.
Using natural gas to displace oil has economic and environmental benefits.
Providing LNG as fuel in major ports creates additional ECA compliance options.
Utilizing a large scale LNG production facility can provide economies of scale and enhanced reliability.
A unique opportunity exists for global collaboration and cooperation to build a bridge between two industries to ensure a safe and smooth transition.

19. Keith Meyer: kmeyer@lngamerica.com
Keith Meyer:
LNG America – 505 N. Sam Houston Pkwy E., Suite 545 Houston, Texas – USA (281)