lng: the economic, environmental and evolutionary marine ......number of lng fuelled ships growing...

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LNG: The economic, environmental and evolutionary marine fuel available now

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Page 1: LNG: The economic, environmental and evolutionary marine ......Number of LNG fuelled ships growing strongly: • 144 in operation • 139 on order • 20%-40% annual growth since 2010

LNG: The economic, environmental and evolutionary marine fuel available

now

Page 3: LNG: The economic, environmental and evolutionary marine ......Number of LNG fuelled ships growing strongly: • 144 in operation • 139 on order • 20%-40% annual growth since 2010

LNG AS A MARINE FUEL

• Infrastructure – global LNG infrastructure is growing fast

• Economics – LNG offers a compelling commercial case

• Environment – LNG is a superior and future fit fuel

• Safe - with known and proven technology

THE STRATEGIC OPPORTUNITY

Page 4: LNG: The economic, environmental and evolutionary marine ......Number of LNG fuelled ships growing strongly: • 144 in operation • 139 on order • 20%-40% annual growth since 2010

INFRASTRUCTURE CASEBULK INFRASTRUCTURE ALREADY EXISTS – ‘LAST MILE’ INVESTMENTS HAPPENING

• Plentiful and growing LNG supply

• Bulk LNG infrastructure exists and is in the right places

• ‘Last mile’ investments are happening (globally)

• LNG bunkering available or planned in 9 of top 10 bunkering locations

• Bunker vessels – 9 in operation and many more on order

Source: SEA\LNG Bunker Navigator

Page 5: LNG: The economic, environmental and evolutionary marine ......Number of LNG fuelled ships growing strongly: • 144 in operation • 139 on order • 20%-40% annual growth since 2010

ECONOMICS – ENERGY COSTS OUTWEIGH CAPEX CONSERVATIVE ASSUMPTIONS REINFORCE BUSINESS CASE

• Diminishing LNG DF CAPEX hurdle- expected to continue

• LNG’s greater energy content provides advantage

• Competitive Energy Costs with much less volatility

• Don’t underestimate the operational cost of scrubbers and other auxiliary equipment

Page 6: LNG: The economic, environmental and evolutionary marine ......Number of LNG fuelled ships growing strongly: • 144 in operation • 139 on order • 20%-40% annual growth since 2010

ECONOMICS – MORE WIDELY RECOGNISEDGROWING ADOPTION OF INVESTMENT CASE

• Number of LNG fuelled ships growing strongly: • 144 in operation

• 139 on order

• 20%-40% annual growth since 2010

• Advancing across a range of vessel types

• Move from short-sea shipping to

deep-sea shipping spaceSource: DNV GL LNGi, January 2019

“LNG is the fuel of the future for shipping,” Rodolphe Saade, Chairman & CEO CMA CGM

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Page 7: LNG: The economic, environmental and evolutionary marine ......Number of LNG fuelled ships growing strongly: • 144 in operation • 139 on order • 20%-40% annual growth since 2010

ENVIRONMENT – POSITIVE WAY FORWARD

• Provides a proven local emissions solution

• Superior air quality benefits

• Only marine fuel providing Greenhouse

Gas benefits

• Relatively stable pricing

LNG MEETS THE NEEDS OF TODAY AND TOMORROW

Page 8: LNG: The economic, environmental and evolutionary marine ......Number of LNG fuelled ships growing strongly: • 144 in operation • 139 on order • 20%-40% annual growth since 2010