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Israel Energy & Business

Convention 2014
Tel Aviv, Israel

3 & 4 November 2014

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Sea NG Alliance

Technology and
Project Developer

Owns all rights to patented


Coselle® System

Finance and
Resource Mobilization

US$63 billion in assets with


6,000 employees

Ship Construction
and Operations

US$11 billion in assets with


6,400 employees

Gas Infrastructure
and Contracting

US$58 billion in assets with


11,000 employees

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Gas markets

Current Market Regional Niche for CNG

DRIVERS PRODUCERS CONSUMERS

Capture/enhance value
ECONOMIC Lower energy cost
of gas reserves

ENVIRONMENTAL Reduce flaring Reduce CO2 emissions

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Marine CNG to Europe from Eastern Mediterranean

E. Med.
Gas

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Coselle dimensions and capacity

4.2 mmscf ~ 120,000


Coselle Capacity
scm ~ 82 t
4000 psi / 275 bar
Pressure
80 oF / 27 oC
OD = 168 mm
Pipe Size
wt = 6.35 mm
Pipe length 21,350 m
Outer Diameter 20.5 m
Inner Diameter 9m
Height 3.1 m
Weight (empty) 630 mt
Steel X80 ERW

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Coselle® System

 A1 Compressed Natural Gas Carrier


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Sea NG Ship Fleet

Ship C16 C20 C25 C30 C36 C42 C48 C56 C64 C72 C84 C96 C112

Length OA (m) 153 153 178 204 210 236 261 267 272 244 267 290 290

Length BP (m) 149 149 173 198 204 229 254 259 264 237 259 282 282
Ship Characteristics

Breadth (m) 26.5 26.5 26.5 26.5 30.0 30.0 30.0 33.0 36.0 47.2 47.2 47.2 47.2

Depth (m) 15.7 18.8 18.8 18.8 22.1 22.1 22.1 25.2 28.3 27.4 27.4 27.4 31.3

Loaded Draft (m) 5.6 6.8 7.0 7.2 7.7 7.8 7.9 8.3 8.6 8.5 8.8 9.1 10.4

Drydock Draft (m) 4.6 5.7 6.0 6.2 6.8 6.8 7.0 7.4 7.7 7.7 7.9 8.2 9.4

Coselles 16 20 25 30 36 42 48 56 64 72 84 96 112
Net Capacity

(million scf)* 66 82 103 123 148 172 197 230 262 295 344 394 459

(million scm)* 1.9 2.3 2.9 3.5 4.2 4.9 5.6 6.5 7.4 8.4 9.8 11.1 13.0

* Net Capacity is net of heel gas and assumes lean gas at 27 oC

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Market Summary
Market Tariff

1300 480
Ploče $/mmBtu $/mmBtu

2,250 km

Market Tariff

1000 360 Southern


$/mmBtu $/mmBtu Italy
Market Tariff

1100 350
$/mmBtu $/mmBtu

1,800 km Market Tariff


Lavrion
Antalya
1000 220
$/mmBtu $/mmBtu

1,175 km

650 km
Atherinolakkos

Market Tariff
Damietta 220 km
? 140 8
$/mmBtu $/mmBtu
Pipeline vs. marine CNG transportation cost comparison

• Pipeline alternative:
• CAPEX assumption: $5 million/km.
• Project term: 15 years.
• IRR: 13% simple PMT calculation (no construction period interest
calculated).
• NO OPEX included

• Marine CNG alternative


• Continuous loading and off-loading.
• Uses same ship type for each of the capacity sensitivities :
• Fleet for a 220 km distance: 3-5 x C48
• Fleet for a 550 km distance: 3-5 x C112
• Project term 15 years @ 13% project IRR
• OPEX for ships and land facilities is included

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Pipeline vs. marine CNG transportation cost comparison – 550 km

Tariff
9.00

8.00

7.00

6.00
$/MMBtu

5.00

4.00

3.00

2.00

1.00

0.00
1 2 3 4 5 6 7 8 9

Delivered volume (bcm/a)

CNG ships Pipeline

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Pipeline vs. marine CNG transportation cost comparison – 220 km

Tariff
4.00

3.50

3.00
$/MMBtu

2.50

2.00

1.50

1.00

0.50

0.00
1 1.5 2 2.5 3 3.5 4 4.5 5

Delivered volume (bcm/a)

CNG ships Pipeline

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Pipeline vs. marine CNG

CNG Pipeline

Higher – has to be built to


Initial Investment Lower
meet final capacity
Has to be built for ultimate
Stepwise investment YES
capacity

Sea NG Alliance assumes Deep water, bilateral issues,


Implementation risks
risks Long distance

Sea NG Alliance will make the Off-taker likely to be required


3rd party investment
investment to invest in pipeline

Flexibility to supply
YES Only fixed destination
alternative markets

Less risk – can be moved,


Geopolitical sensitivity More risk – cannot be moved
less sensitive

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Contacts

Sea NG Corporation
Suite 750, 101-6th Avenue SW
Calgary, Alberta, T2P 3P4, Canada
www.sea-ng.com

Adam Hedayat
Vice President, Mediterranean,
Middle East and Africa

ahedayat@sea-ng.com

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