Small-scale LNG’s big opportunities 21 April 2021 • 13:00-13:45 BST

LNG SHIPPING & TERMINALS

LNGWebinar Week

Part of

20-22 April 2021

Panellist documents

Page 2: Martina Sabatini, OLT OffshorePage 10: Paul Ocholla, GrainLNGPage 17: Eduardo Perez Orue, Small-LNG

OLT Offshore LNG Toscana“LNG bunkering from FSRUs”

Martina SabatiniTechnical SuperintendentApril 21st, 2021

LNG as a sustainable fuel

Source: Life Cycle GHG Emission Study on the Use of LNG as Marine Fuel

SSLNG service permits the use of LNG as asustainable fuel and capable of reducingpolluting and climate-changing emissions inheavy land and sea transport, as well as forindustrial and civil uses in areas not servedby the national transport network.

European Green Deal: end of the use of fossil

fuels in 2050 and a reduction of at least

40% of greenhouse gas emissions by 2030

LNG is the cleanest fossil fuel

LNG to increase the security and

diversification of energy supply

FSRU TOSCANA SSLNG PROJECT – TIMELINE

2015: pre-feasibility study to verify the technical feasibility

2020: detailed engineering studies, ready for procurement and construction

2020: the competent Autothoritiesissued the decree authorizing OLT to

provide the discharge of LNG into SSLNG carriers

End of 2020: The purchase orders for the components and the necessary works

started

Beginning 2022: launch of SSLNG service

FSRU TOSCANA SSLNG PROJECT – range of SSLNG potentially compatible

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General ParticularsTypical capacity: 7500 m3

3,5 barg max operating pressure90 m -120 m length overall15.0 m - 20.0 m breadth5.5 m - 8.0 m loaded draughtPressurized horizontal cylindrical, Membrane tank type

LNG manifolds

Manifolds According to Category B1 and B2 of SIGTTO(Height of manifolds above swl min 6 m max 18 m)

Mooring

4,5 m min freeboard to mooring deck @ fully loadeddraughtSufficient number of winches in order to complywith minimum number of mooring lines requested byterminal8 mooring lines (2 head lines, 2 fwd spring, 2aft spring, 2stern lines)No less than 45 t minimum breaking loadOnly Nylon tails

Small SSLNG fleet at present time Different types of vessels (multichemicals)

FSRU TRANSFORMATION

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From this…

… to this

Mooring/unmooring study

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Full-mission bridge simulations for SSLNGc, FSRU at Marin (Holland)Maneuvering studies have been done with a model of a SSLNGc of about 120 m in order to identifythe metocean mooring limits and to point out the criticalities of the mooring and unmooringmaneuver.

Terminal modification port side mooring

The Small LNG carriers will be moored on FSRU portside alongside; new mooring equipment(fairleads and quick release hooks) will be installed.

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The existing port manifolds lines will alsobe modified in order to connect 6-inch cryogenic hoses with an emergency release systems in a configuration L-V-L includingan upgrade of ship shore link.

Thank you for your attentionwww.oltoffshore.it

Small Scale LNG Market in the UK

April 2021

Grain LNGThe largest Liquid Natural Gas (LNG) terminal in Europe

1,000,000m3of LNG storage

~£1bn shareholder investment Multiple

JettiesQmax capable jetties12,000m3/h unload

rate

IndependentOperator

645 GWh/d capacity

~ 25% of UK’s gas demand

Liquid Natural Gas (LNG) is natural gas (predominantly methane) cooled down until it is in liquid form at temperatures of -162ᵒC

Our servicesA flexible offering that allows customer to optimise and react to market conditions

Regasification (2005)

Reloading (2015)

Transhipment (2019)

Small Scale LNG – Truck Loading (2015)

Primary service & main revenue generator with capacity sold as a bundle consisting of berthing

slots, storage capacity and regasification capacity

New service introduced in 2015 allowing capacity holders to reload their LNG and move to a higher

priced market

Innovative service introduced in 2019 allowing both capacity holders or 3rd party Shippers to

perform ship to ship transfer without the use of the terminal storage tanks

Launched in 2015, this service allows capacity holders to sell their LNG to the emerging small scale market that includes using LNG as a fuel for road transport,

off-grid industry and marine vessels to reduce environmental pollution and carbon emissions

Introduction to Small Scale LNG (ssLNG) Market

• The UK has committed to a carbon emission target of Net-Zero by 2050

• Transport remains the highest emitting sector at 27% followed closely by industry and business

• ssLNG offers the market a cleaner alternative fuel to diesel or fuel oil

• LNG as a fuel emits 20% less CO2 and up to 85% if substituted with bio-LNG

• LNG also emits 95% less Nitrous dioxide (NOX), 99% less sulphur dioxide (SOX) and 100% less particulates compared to diesel

BEIS Greenhouse report 2019 Element Energy Well to Wheel 2018 Report

ssLNG UK Market Cycle in Transition

Introduction Phase

• Year on year growth in utilisation over 35% and FY21/22 forecast to increase by over 70%

• Significant fleet orders (additional 615 trucks) are being filled and this will lead to yet another significant increase in 2020 and 2021

• Challenge in optimizing to cater for the market transition to a high growth phase

Growth Phase

Dft HGV Registrations 2019

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Processes

Place

Prices

Promotion

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Challenges of a transition to high growth market

Marketing Mix

• Contract update• Capacity review

• Price review• More incentives

• Manning levels• Training & buy-in

• Milestone awards• 10,000th load

• Benchmark• Optimisation

• Expand multi-modal• Traffic management

Questions?

Small-LNG.comc

Small scale LNG Shipping

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Small LNG carriers ≠ smaller LNG carriers

“Normal” LNG carriers● Single product● Membrane or MOSS

tanks● Economics based on

LNG trade exclusively● Dedicated ports

Small LNG carriers● Multigas carriers● Type C (or Membrane)

● Economics based on Petrochemicals trade

● Flexible on ports

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Small-LNG.comc

Small Gas Carriers● Not better; not worse: different● Solve a different problem● They need to be managed differently

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Small-LNG.comc

THANK YOU

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