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Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution Zeus Intelligence June 26, 2013 Gary W. Van Tassel Manager, LNG Technical Argent Marine Companies

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Page 1: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies Argent Marine Companies

Emerging LNG ISO Container Markets

Inland and Intercoastal Intermodal Distribution

Zeus Intelligence

June 26, 2013

Gary W. Van Tassel

Manager, LNG Technical

Argent Marine Companies

Page 2: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

Joint Venture

Argent Marine Maersk Line, Limited

• Specialist in LNG marine vessels and related engineering services

• Advisor to domestic and international LNG marine operations

• Service provider to major oil & gas companies

• U.S. flag Jones Act

qualified company

• Ship design and engineering expert

• 28 years of experience in:

o Tanker operations o Vessel management o Maritime technical

services

• Global intermodal capability

• Established U.S. flag network

State-of-the-art

marine/land-based

technology for the

safe and economical

distribution of LNG

Our partnership brings a unique solution to the LNG value chain

Page 3: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

Intermodal LNG

Trucking Rail

ISO Tanktainers: efficient storage, loading and transport

Page 4: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

Intermodal LNG

• Reduced transport cost model for small parcels of LNG

• Minimal to no new infrastructure required

• Reach markets not previously accessible or addressed by traditional approach to LNG distribution

Transportation fuel

Power production

Industrial Users

Conversion from LPG

• Covered under existing regulations

International – IMDG Code

Page 5: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

ISO LNG Container On Container Ship

1. Fill ISO LNG Container @ Liquefaction Facility

2. Transit to Port Container Terminal

3. Lift ISO LNG Container off Chassis (rail) and Stage for Ship Arrival

4. Transport ISO LNG Container from Staging Area To Ship Side

5. Load ISO LNG Container on to Ship (Regulated under IMDG Code)

6. Containership Transits to Delivery Port(s)

7. Unload ISO LNG Container from Ship

8. Transport ISO LNG Container to Staging Area

9. Onward Delivery via Established Intermodal Systems • Road

• Rail

• Inland Marine

Page 6: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

ISO LNG Container On Container Ship

10. Transit Empty ISO LNG Container to Port Container Terminal

11. Lift ISO LNG Container off Chassis and Stage for Ship Arrival

12. Transport ISO LNG Container from Staging Area To Ship Side

13. Load ISO LNG Container on to Ship

14. Containership Transits to Loading Port

15. Unload Empty ISO LNG Container from Ship

16. Transport ISO LNG Container to Staging Area

17. Load Empty ISO LNG Container onto Chassis (or rail)

18. Transit Empty ISO LNG Container to Liquefaction Facility

19. Fill ISO LNG Container @ Liquefaction Facility

Page 7: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

Container Handling Costs

Cost Element US East Coast US Gulf Coast US West Coast

#2 Transport from Liquefaction1 $450-$550 $450-$550 $450-$550

#3 Gate In to Terminal

$250 $215 $335 #4 Stage at Terminal

#5 Load onto Ship

#15 Unload from Ship

$250 $215 $335 #16 Stage at Terminal

#17 Gate Out from Terminal

#18 Transport to Liquefaction1 $450-$550 $450-$550 $450-$550

Total $ / LNG Tanktainer $1,400 $1,330 $1,570

$ / mmBTU (~85% fill lvl)2 $1.82 $1.73 $2.04

1. Local drayage cost ~ 25 miles each way

2. Does not include cost/labor at LNG source

Page 8: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

Additional Impacts

1. Loading bay occupancy at LNG source

2. Increased road traffic

3. Tanktainer hold time

4. LNG heat gain and LNG equilibrium conditions at delivery point

5. Storage location on ship limited (on deck only)

Page 9: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

Intermodal LNGC Transport System

1. Fill ISO LNG Container @ Liquefaction Facility

2. Transit to Port Container Terminal

3. Lift ISO LNG Container off Chassis (Rail) and Stage for Ship Arrival

4. Transport ISO LNG Container from Staging Area To Ship Side

5. Load ISO LNG Container on to Ship (Regulated under IMDG Code)

6. Containership Transits to Delivery Port(s)

7. Unload ISO LNG Container from Ship

8. Transport ISO LNG Container to Staging Area

9. Onward Delivery via Established Intermodal Systems • Road

• Rail

• Inland Marine

Combine Multiple Steps to Single

Evolution to Reduce LNG Delivery Cost

Page 10: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

ISO LNG Container On Container Ship

10. Transit Empty ISO LNG Container to Port Container Terminal

11. Lift ISO LNG Container off Chassis and Stage for Ship Arrival

12. Transport ISO LNG Container from Staging Area To Ship Side

13. Load ISO LNG Container on to Ship

14. Containership Transits to Loading Port

15. Unload Empty ISO LNG Container from Ship

16. Transport ISO LNG Container to Staging Area

17. Load Empty ISO LNG Container onto Chassis (or rail)

18. Transit Empty ISO LNG Container to Liquefaction Facility

19. Fill ISO LNG Container @ Liquefaction Facility

Combine Multiple Steps to Single

Evolution to Reduce LNG Delivery Cost

Page 11: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

Intermodal LNGC Transport System

Intermodal LNGC

Page 12: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

Intermodal AT/B LNGC

Patented

Page 13: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

Intermodal AT/B LNGC

Page 14: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

Intermodal AT/B LNGC

• Designed as a Gas Carrier – IGC code

• Reduced man-power to load tanktainers

• Holding time prior to final delivery limited

Tanks locked in after loading – hold time starts with departure from loading terminal

Boil-off management during voyage – hold time starts with discharge of tanktainer from vessel

• Multiple delivery ports

• Capability to discharge LNG in bulk

• Designs for ocean and inland/river

• Bunker Vessel

Page 15: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

LNG Delivered Cost - Trends

$

/

m

m

B

T

U

Delivered Volume

ISO LNG Container on Container Ship

Page 16: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

1. Includes all landside delivery/tankage costs

Indicative Transport Economics (up to 1,000 NM)

$2.00-$4.00/mmbtu(1)

($.17 - $.34/gallon)

Maersk-Argent Intermodal

Page 17: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

1. Includes all landside delivery/tankage costs

Indicative Transport Economics (up to 1,000 NM)

$.35 - $1.10/mmbtu

($.03 -$.09/gallon

Bulk

$2.00-$4.00/mmbtu(1)

($.17 - $.34/gallon)

Intermodal

Page 18: Emerging LNG ISO Container Markets Inland and … · Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution

Argent Marine Companies

Thank You

www.maersklinelimited.com

www.ArgentMarine.com