1. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013

2. Background Why choose LNG as fuel? Status & Prospect for LNG fuelled ship Our goals with LNG fuelled ship Future works Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 2

3. 3 Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013  The volume of seaborne trade Abt. 600 million DWT (1985) → 1,200 million DWT (2009)  The volume of seaborne trade by LNG carriers Abt. 3.8 million DWT (1985) → 22.4 million DWT (2009) (Year) (Million DWT) 101% rise (Million DWT) 590% rise

4. 4 Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Green-Ship Technologies Offshore Technologies

5. 5 Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 (1) Promoting sustainable and long-term growth ‘The action agenda to move APEC toward and Energy efficient, Sustainable, Low-Carbon Transport Future’ (2) Intensive cooperation to foster innovative growth ‘Technical and economic cooperation among APEC economies’ The 7 th APEC Transportation Ministerial meeting held in San Francisco, 14 Sep. 2011 The 20 th APEC Economic Leaders’ declaration in Vladivostok, 8~9 Sep. 2012

6. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 6 Regulations for the prevention of air pollution - CO2 → EEDI, EEOI, SEEMP - IMO prohibits NOx & SOx emission (1) Environmental Issues  Global warming  Destroying forest / Acid rain  Melting glacier

7. (2) Fuel Cost (outlook) Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 7 Oil Price Competitiveness LNG Price Competitiveness ► Increase LNG Production in Qatar, Australia and etc. ► Shale gas in U.S.A $13 ~ $22 per mmBtu $3 ~ $15 per mmBtu ► Decrease Oil Production ► Instability of Oil market Vs. Source : Man Diesel, GL

8. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 8 (2) Fuel Cost LNG Price : 13 USD/mmBTU LNG price is about 30% cheaper than the bunker price Source : MAN Diesel

9. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 (3) Alternative technologies to meet emission criteria

10. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 10

11. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 11 Region2012 year 2030 year East Asia-81 Middle East / Southeast Asia-12 North America-21 South America-10 Europe0.3724 FSU-7 Africa-5 Total0.37161 Source : Gazprom Unit : million tons

12. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 12 Phase2. (Feb., 2014) Networking with expertise group  Policy makers of maritime affairs administration in APEC region  Interested person in company of energy, port, shipbuilding, shipping and classification  Academics and researcher Phase 1. (Jan., 2014 ) Analysis on market requirement from environmental aspects  Present state of application for technologies on LNG fuelled ship - Investigation of technology needed to store LNG aboard a ship and fuelling ships with LNG  Study on the trade statistics and analysis on what ship types and sizes that are suitable for LNG as fuel source

13. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 13 Phase4. (Oct, 2014) Hold International joint seminar and suggest the new agenda  Target : people in shipping, shipbuilding, energy and port’s industry  Place / Occasion : Expected in Republic of Korea / Oct. 2014  Subject 1)Global status of LNG fuelled ship 2)Select of LNG fuelled ship service model 3)Proposal of government’s role and task for stimulating LNG fuelled ship Phase3. (Mar~Sep, 2014) Research on market requirements from environment and technologies aspects  Regulation : trends of environment restrictions  Technology : safety, engine, and bunkering etc.  Energy : energy market by increasing in demand of LNG  Service : CDM(Clean Development Mechanism) and bunkering service

14. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 14 LNG Bunkering Infra Clean Port Control

15. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 15 (1)Develop new business model between APEC economies (2)Enhance the competitiveness of seaborne trade in APEC region (3) Find innovative policy for new technologies and cooperative solution

16. 16 Thank you for your attention!