Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

• Background

• Why choose LNG as fuel?

• Status & Prospect for LNG fuelled ship

• Our goals with LNG fuelled ship

• Future works

Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

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Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 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

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Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

Green-Ship Technologies Offshore Technologies

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Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 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 7th APEC Transportation Ministerial meeting held in San Francisco, 14 Sep. 2011

The 20th APEC Economic Leaders’ declaration in Vladivostok, 8~9 Sep. 2012

Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

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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

(2) Fuel Cost (outlook)

Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 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

Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

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(2) Fuel Cost

LNG Price : 13 USD/mmBTU

LNG price is about 30% cheaper than the bunker price

Source : MAN Diesel

Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

(3) Alternative technologies to meet emission criteria

Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

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Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

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Region 2012 year 2030 year

East Asia - 81

Middle East / Southeast Asia - 12

North America - 21

South America - 10

Europe 0.37 24

FSU - 7

Africa - 5

Total 0.37 161

Source : Gazprom

Unit : million tons

Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

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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

Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

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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

Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

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LNG Bunkering Infra Clean Port Control

Thirty Thirty Eight Eight APEC Transportation APEC Transportation Working Working

Group Meeting, Group Meeting, BaliBali, , IndonesiaIndonesia1 – 5 July 20131 – 5 July 2013

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(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

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Thank you for your attention!