DEMANDSUPPLY

Global LNG demand is expected to growby 39% (12 Bcf/d) faster than supplyat 27%(8.5 Bcf/d) in the next 5 years

39%

IF THE PILOT TESTS PROVE LNG ENGINES RELIABLE,

RAILROADS AND MARINE OPERATORS GAIN THE ADVANTAGE

OF USING A CLEANER, GREENER, AND CHEAPER FUEL

Combined with EGR and wasteheat recovery, LNG easily meetsTier 3 and 4 emission norms

LNG

DIESEL

-40%

LNG EXPECTED TO INCREASE PRESENCE IN RAIL AND MARINE SIGNIFICANTLY:

LNG emission reductions: • NOX up to 40% • PM up to 70% • CO2 up to 20%

Of US natural gas supplywill come from shale gas by 203546%

0

20

40

60

80

100

USA has 4th largest technicallyRECOVERABLE SHALE GAS RESOURCES- over 661 TCF

0 200 400 600 800 1000 1200

China

BrazilRussia

South AfricaAustraliaMexicoCanada

USAAlgeriaArgentina

• 2.9% penetration in the global marine market

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1

2

3

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5

2012

2013

2014

2015

2016

2017

2018

2019

2020

Rail

Marine

By 2020, LNG engines to have :

• 4.3% penetration in the US rail market

4th

• High Pressure Direct Injection System (pressures as high as 30 Mpa)• Dual fuel with diesel in case of rail and diesel / heavy fuel oil for marine• Diesel is used for pilot flame• Double walled stainless steel tanker / tender to hold LNG at -260 ˚F• Conversion of liquid to gas through heat exchanger• Challenges remain in addressing engine size, injection systems and materials

Enabling LNG in rail and marine engines involve:

For more information contact Jeannette Garcia, Corporate Communications | jeannette.garcia@frost.com