MINI LNG TRANSPORT MINI LNG TRANSPORT SOLUTIONSOLUTION

Mini – LNG OpportunityMini – LNG Opportunity Mini - LNG BenefitsMini - LNG Benefits LOVENERGY LTD Solution - Case LOVENERGY LTD Solution - Case

StudiesStudies

Mini – LNG OpportunityMini – LNG Opportunity

Natural gas is highly efficient and environmental Natural gas is highly efficient and environmental friendly energy sourcefriendly energy source

Demand for natural gas is increasingDemand for natural gas is increasing Existing LNG or gas pipeline infrastructure is focused Existing LNG or gas pipeline infrastructure is focused

on the large scale consumerson the large scale consumers Small and isolated energy markets are not connected Small and isolated energy markets are not connected

to existing infrastructure – connecting to existing to existing infrastructure – connecting to existing infrastructure is not economically viableinfrastructure is not economically viable

Isolated energy centres are utilizing more expensive Isolated energy centres are utilizing more expensive diesel oil or more polluting heavy fuel oildiesel oil or more polluting heavy fuel oil

Several companies have developed small to mid size Several companies have developed small to mid size units capable of purification and liquefaction of gas, units capable of purification and liquefaction of gas, using scalable modular designs that will produce using scalable modular designs that will produce between (100 and 1000T/day) of LNG.between (100 and 1000T/day) of LNG.

Alongside the LNG liquefaction and processing Alongside the LNG liquefaction and processing technology, the means of transporting such volumes technology, the means of transporting such volumes has also developed. The first and simplest technique is has also developed. The first and simplest technique is that of road transportation via road tankers (USA, that of road transportation via road tankers (USA, Australia and Europe). On a larger scale, sea and river Australia and Europe). On a larger scale, sea and river transportation via barges is also developing.transportation via barges is also developing.

The basis of the LOVENERGY LTD business model is to The basis of the LOVENERGY LTD business model is to exploit the above technology and adapt it further in exploit the above technology and adapt it further in terms of scale and modes of transportation to terms of scale and modes of transportation to capitalise on a market arbitrage that the company capitalise on a market arbitrage that the company believes it is uniquely positioned to capture.believes it is uniquely positioned to capture.

Mini - LNG Opportunity - ContinuedMini - LNG Opportunity - Continued

Mini - LNG Opportunity - ContinuedMini - LNG Opportunity - Continued

MINI – LNG SUPPLY TRAIN – STRANDED GAS FIELD

Mini - LNG Opportunity - ContinuedMini - LNG Opportunity - Continued

MINI – LNG SUPPLY TRAIN from LNG TERMINAL

Mini - LNG BenefitsMini - LNG Benefits

Lower infrastructure and shipping cost, also Lower infrastructure and shipping cost, also infrastructure can be adjusted to meet demand.infrastructure can be adjusted to meet demand.

Capable of serving costumers that will never be Capable of serving costumers that will never be served by gas pipeline allowing the use of a more served by gas pipeline allowing the use of a more efficient and environmental friendly energy source. efficient and environmental friendly energy source.

Multiple ships can be used to increase capacity, Multiple ships can be used to increase capacity, hence a good solution for the markets where changes hence a good solution for the markets where changes in demand can be expected (tourist destinations). in demand can be expected (tourist destinations).

Short lead time.Short lead time. Supply flexibility – can be used in case of the Supply flexibility – can be used in case of the

problems with gas supply pipeline.problems with gas supply pipeline.

LOVENERGY LTD – LNG Solution – LOVENERGY LTD – LNG Solution – Case StudiesCase Studies

Key idea: use already established Key idea: use already established (proven) technology to supply LNG to (proven) technology to supply LNG to isolated markets or isolated energy isolated markets or isolated energy centres at low cost.centres at low cost.

Mini re – gas plant and mini LNG storage – technology Mini re – gas plant and mini LNG storage – technology already existingalready existing

Mini LNG Plant – technology already existing.Mini LNG Plant – technology already existing. Mini LNG transport solution – technology already Mini LNG transport solution – technology already

existing – RAM LNG has developed and patented a low existing – RAM LNG has developed and patented a low cost LNG ship design -standard loading / offloading cost LNG ship design -standard loading / offloading system.system.

LOVENERGY LTD – LNG Solution – LOVENERGY LTD – LNG Solution – Case StudiesCase Studies

INDEPENDENT LNG TANKS AT OPEN DECK

STANDARD LOADING /OFFLOADING MANIFOLD

STANDARD DECK CARGO SHIP

LOVENERGY LTD – LNG Solution – LOVENERGY LTD – LNG Solution – Case StudiesCase Studies

CASE STUDY 1. - 200MW @ 500 km from hubCASE STUDY 1. - 200MW @ 500 km from hub

Power Station capacity 200 MWPower Station capacity 200 MW Distance from LNG storage facility 500kmDistance from LNG storage facility 500km LNG consumption 1000 - 1200 tonnes per day (50-60 mmscf/d) LNG consumption 1000 - 1200 tonnes per day (50-60 mmscf/d) ––

this will depend upon the efficiency/type of generators and this will depend upon the efficiency/type of generators and calorific value of the feedstock. Annual consumption is function of calorific value of the feedstock. Annual consumption is function of load factor.load factor.

Vessel maximum speed 13 knotsVessel maximum speed 13 knots Time at loading point 12 hours, time at discharge point 12 hoursTime at loading point 12 hours, time at discharge point 12 hours Voyage duration from storage facility to power plant 24 hours Voyage duration from storage facility to power plant 24 hours

(average 11 knots)(average 11 knots) Round trip including loading and discharge 3 daysRound trip including loading and discharge 3 days

LOVENERGY LTD – LNG Solution – LOVENERGY LTD – LNG Solution – Case StudiesCase Studies

Infrastructure at the power plant:Infrastructure at the power plant:

1.1. Unloading jettyUnloading jetty

2.2. LNG storage LNG storage –– 20,000 m3 (approx 20,000 m3 (approx 7 days consumption at 200MW)7 days consumption at 200MW)

3.3. Diesel or fuel oil back up storage Diesel or fuel oil back up storage (existing).(existing).

4.4. Re-gasification plant Re-gasification plant –– 60 mmscf/d 60 mmscf/d

LOVENERGY LTD – LNG Solution – Case LOVENERGY LTD – LNG Solution – Case StudiesStudies Conversion of generators to duel fuel – this will Conversion of generators to duel fuel – this will

depend upon the type and age of the units currently depend upon the type and age of the units currently installed.installed.

By increasing the size of the ship the frequency of By increasing the size of the ship the frequency of deliveries can be reduced however storage deliveries can be reduced however storage requirements will increase.requirements will increase.

As part of a feasibility study a risk assessment would As part of a feasibility study a risk assessment would be included looking at ways to mitigate downtime and be included looking at ways to mitigate downtime and environmental risks. For example, number of vessels, environmental risks. For example, number of vessels, voyage frequency, vessel capacity, LNG storage, back voyage frequency, vessel capacity, LNG storage, back up fuel capacity, local generating capacity etc.up fuel capacity, local generating capacity etc.

LNG fuel price < diesel or fuel oil equivalentLNG fuel price < diesel or fuel oil equivalent Carbon saving 4-500,000 tpa = Eu5-10 million pa.Carbon saving 4-500,000 tpa = Eu5-10 million pa.