4ANGELICOUSSIS SHIPPING GROUP THE FLEET NODWTOperating222,510,418On Order61,032,000Total283,542,418DRY CARGOTANKERSLNGNODWTOperating317,227,251On Order2640,000Total337,867,251(Including Managed vessels)NODWTOperating-On Order4292,400TotalFleet as at 13 April 2005
20Characteristics of the “OLD” LNG Market Individual ProjectsLong Term ContractsShipping Tightly LinkedReliability Paramount ConcernRelatively Slow Growth
21Characteristics of the “NEW” LNG Market New Growth Phase – Common ViewMany More Projects- Expansions- New Green FieldCross - Project CompetitionMore Players and AssetsIncreased Cost Focus
22More Political Government Ownership Every Liquefaction plant has host government ownership interest (Except in Kenai, Alaska)Governments benefit by :Tax RevenueJob creationRoyaltiesInfrastructure Improvements
23Public Opinion : “LNG is environmentally friendly – but scary”
24Public 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 toxicLNG 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.
25Competitive 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.
26Competitive 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
27Competitive 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.
29Oil Routes Oil Routes, 2004 Oil Routes, 2010 Source : DNV MARKET OUTLOOK - Shipping Market Development TrendsSeaborne 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.
31Gas Routes Key Global Gas Trades, 2004 Expected Global Gas Trades, 2010Source : DNV MARKET OUTLOOK - Shipping Market Development TrendsInternational 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.
39CONCLUSIONS World Energy demand will continue to grow strongly All forms of energy supply will be needed to meet this growing demandCompetition will be for building berths, man-power, financing, – impacting on costs and ratesChina’s continuing development will increase energy demand, but also add to ship production base.The LNG industry will not cannibalize the Oil Tanker industry