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KANFER SHIPPING & LNG ATB

Copyright Kanfer Shipping AS, January 2016

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What is an ATB (articulated tug barge)?

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What is an ATB? 500 units in operation in North America

• ATB = Articulated Tug Barge

• ATB consist of a barge and a separate tugboat which connects and locks into the stern of the barge

• This is a cost efficient alternative of carrying goods over relatively short distances

• A “ship-shaped” barge makes the ATB ocean-going

• ATBs are used globally, but less known outside North America where there is about 500 units in operation

The most powerful ATBs built is owned by Crowley Maritime, which operates a large ATB fleet. Powered by a pair of Wärtsilä diesels coupled to CP propellers for a total of 16,320hp and speed of up to 15 knots.

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Company overview Kanfer Shipping - ship owner and operator

• Kanfer Shipping is a Norwegian registered limited company established in 2013

• Management has extensive shipping and offshore experience from all aspects of the LNG logistical chain as well as logistics & international shipping.

• Kanfer Shipping is commercialising the solution globally and is currently creating a global representation network

• Kanfer Shipping brings other maritime partners into projects: • Naviform, a Canadian company among the most merited naval architects within the ATB market

• An influential Norwegian ship owner with extensive experience with liquid fuels

• A US ship owner with experience with ATBs

• Onshore and offshore infrastructure providers

• Suppliers of LNG

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Company overview Our involvement in LNG projects

• Kanfer Shipping has 3 LOIs and working concrete projects in 3 continents

• A global approach

• We have partnership with several companies within the LNG value chain

• We have an exclusivity deal on the design/patent

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Kanfer Shipping LNGATB design LNGATB is reliable & seaworthy

• Fully ocean-going capability

• Reliable as ordinary ships: • All proven and tested technology, but our solution is based on

thinking outside the box

• No oil spill or casualties recorded on ATBs

• The pin system connecting tug to barge has never broken or interrupted operations

• The design has been model tested in rough sea conditions

• Most ATBs are designed for moderate sea conditions while our design has no limits when it comes to sea conditions

Oil majors have been chartering ATBs for a long time already

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Kanfer Shipping LNGATB design LNGATB has Approval in Principle from Class

Approval in Principle is granted by:

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One tug and one barge would work as an ordinary ship

Kanfer Shipping LNGATB Solution I: 1 tug and 1 barge – transportation and/or bunkering

• One barge and one tug would basically be running as a feeder/short sea ship

• Use as a bunkering or distribution vessel

• Robust - it takes rough seas well

• Speed of up to 12 knots

• Somewhat higher consumption than an ordinary ship

• CAPEX less than ordinary small scale LNG ship

• OPEX far less than ordinary small scale LNG ship

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Kanfer Shipping LNGATB Solution II: 1 tug and 2 barges – floating terminal (FSU or FSRU)

• One tug and two barges would be both transportation as well as a storage terminal solution

• Barges can be equipped with regasification unit

• One tug could also take care of more than 2 barges and therefore serve several terminals

• Time to market is competitive

• Flexible and scalable

• Minimize investment in land-based installations and property footprint

• Floating terminals can be moved to other projects, countries and continents if need be

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Kanfer Shipping LNGATB Solution II:

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About USD 80-100 mill

Cost comparison 9,000 cbm terminal & transportation

LAND BASED TERMINAL + 1 LNG VESSEL

• Planning, engineering, construction and permitting is expensive and time consuming

• Investment in real estate is required

• Site location may be an issue

• Scalability may be an issue

• When built the cost is sunk and project is irreversible

• Limited number of small scale LNG ships available

COST ESTIMATE

• 9,000 cbm landbased storage terminal

• Small scale LNG carrier (about 7,500 cbm – NOT 9,000 cbm)

2 LNG BARGES + 1 TUGBOAT

• From decision to delivery, max. 20 months.

• Improved operating efficiency, reliability and flexibility for the small scale LNG market (ship and terminal)

• Movable, scalable and less financial risk

• Limited investment in land based infrastructure required

• Lower OPEX compared to land based LNG terminal and ship

COST ESTIMATE

• 2 x 9000 cbm barges

• 1 Tugboat

• USD 50-60 mill

Land based terminal (North European case) that includes tank system, generators, EPC and property (not including regas, piping etc.)

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+

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COST COMPETITIVE

ROBUST

FLEXIBLE

SCALABLE

Sea and water

LNGATB