LNG supply in the Baltic SeaLNG in Baltic Sea Ports II – Final Conference3rd of December 2015Benjamin JankeDirector Sales and Business DevelopmentTel: 49 40 468 959 223Mail: [email protected]

Agenda1. Introduction2. Bomin Linde LNG projects & operations3. LNG pricing & summary07/12/20152

Bomin Linde LNG is a joint venture between The LindeGroup and Marquard & Bahls to supply marine LNGThe Joint VentureCommentsThe Linde Group Founded in 1879 in Munich Leading supplier of industrial,health care and specialty gases Leading supplier of cryogenicequipment and facilitiesMarquard & Bahls Founded in 1947 in Hamburg Largest privately owned naturalresource trader in Europe Global bunkering, fuel storageand handling07/12/2015 Source: Marquard & Bahls, Linde, Bomin Linde LNG3

Agenda1. Introduction2. Bomin Linde LNG projects & operations3. LNG pricing & summary07/12/20154

BLLNG is a front runner in development of the completemarine LNG value chain in North West EuropeBomin Linde LNG in EuropeProjects / OperationsImpressionsStockholm 20,000 cbm LNG terminal World’s first LNG Supply Vessel:SEAGAS1) Long-term supply of Viking GraceBaltics: large-scale LNG capacity &Bunker Supply Vessel (from 2017) Partnership with Klaipedos Nafta LNG Bunker Supply Vessel(under rgCuxhavenEmdenHamburg Flagship small-scale LNG terminal(under development)Cuxhaven Long-term supply of LNG-fuellednewbuildt “Helgoland” from Q3/2015Emden Long-term supply of first seagoing LNGfuelled vessel in GER “MS Ostfriesland”1) Bomin Linde LNG has full access to both the LNG terminal as well as the SEAGAS fueling vessel07/12/2015 Source: AGA, AG EMS, Klaipedos Nafta, Bomin Linde LNG5

20,000 cbm LNG terminal in Nynashamn, Sweden07/12/2015 Source: AGA, Bomin Linde LNG6

The world’s first LNG bunker vessel "SEAGAS"Bunkering operations in StockholmComments Experience: 800 safelycompleted ship-to-shipbunkering operations Fast fuelling operation toViking Grace; finished inca. 45 minutes "State of the art"cryogenic technologymanufactured by TheLinde Group07/12/2015 Source: AGA, Bomin Linde LNG7

Hamburg small-scale LNG terminal:Permit request is currently being processedPremises: Blumensandhafen, HamburgComments Functions of terminal include: Receiving LNG from bunkersupply vessels and trucks Filling of LNG containers,trucks, bunker supply vesselsas well as LNG-fueled vessels Modular construction, capacityexpandable Basic engineering finalized authority approval in process(BImSchG) Planned to be operational by end201707/12/2015 Source: Oiltanking, Bomin Linde LNG8

Bomin Linde LNG has secured the first two marine LNGsupply contracts in GermanyMS OstfrieslandMS HelgolandComments 2014: Development of LNGfuelling procedures incooperation with AG Ems andDNV GL 2015: Start of Truck-to-shipLNG supplyHeligolandBorkumHamburgEmden07/12/2015 Source: AG EMS, Reederei Cassen Eils, Bomin Linde LNGCuxhavenHamburg Port of Emden was the firstport in Germany to grantpermits for regular LNGfuelling operations9

BLLNG and Klaipedos Nafta jointly developing the LNGmarket in the Baltic SeaFSRU “Independence”Comments Q1/2015:Memorandum of Understandingbetween Klaipedos Nafta &Bomin Linde LNG signed Q4/2015:Bomin Linde LNG & KlaipedosNafta established joint-venturefor LNG Bunker Supply VesselNext steps: Signing charter contract / placingorder for the LNG BSV Bomin Linde LNG to becomecapacity holder in theFSRU “Independence”, Klaipeda LNG Bunker Supply Vessel willbe operational in 201712/7/2015 Source: Klaipedos Nafta, Bomin Linde LNG10

LNG Bunker Supply Vessel combines highest safetystandards & superior performanceVesselLNG LOA:110 m Breadth:18 m Draught:5.3 m Crew: Ice class:7,500 cbm (LNG) Speed:13 knots170 cbm (MGO) Generator:3 DF gensets Tank type:Type C Propulsion: 2 x azimuth thrustersmax. 20 Pressure:3.75 bar(g)1A Hose diameter:6 inch (4 8 opt.)Re-liquifaction unit onboard, (no „aging“) Flow rate:60 -1,250 cbm /hNo Gas-Combustion Unit (zero-emission) Delivery height:1 – 20 mDynamic Positioning 2 (DP2) ready07/12/2015 Source: Bomin Linde LNG Capacity:Set-up2 x pump jets11

LNG quality: state-of-the-art equipment onboardensures accurate measurement of LNG quality & massGas ChromatographMeter&Coriolis FlowCommentsGas Chromatograph: LNG quality will beconstantly analyzed by a gaschromatograph Gas chromatograph willregularly re-calibrate viareference gasCoriolis Flow Meter: Flow (mass) will be measuredby a coriolis mass flow meter07/12/2015 Source: Siemens, Bomin Linde LNG12

Official LNG Bunker Delivery NoteIssued by the International Maritime Organization (IMO)07/12/2015 Source: IMO, Bomin Linde LNG13

Flexible LNG Ship-to-Ship bunkering solutionTwo knuckle-boom craneComments Two knuckle-boom crane with telescopicextension using flexible hoses Operating radius: 1 - 20m above water level Fibre-optical and hard wired ESD interfaces Quick release coupling with integrated automaticrelease (ESD2) & break-away coupling Vapor return (high pressure compressor) Flow: 60 – 1,250 cbm/h Compliant with SIGGTO & SGMF regulations aswell as ISO 20519 (specification for bunkering ofgas-fuelled ships)07/12/2015 Source: Bomin Linde LNG14

Bomin Linde LNG ensures availability of LNG for variouscustomer segmentsBreak-bulk hub in the Baltic SeaCommentsStockholm1.LNG bunkering ofmaritime customers2.LNG supply tosmall scale terminals3.LNG supplyvia truckKlaipedaHamburgRotterdamZeebrugge12/7/2015 Source: Klaipedos Nafta, Bomin Linde LNG15

Agenda1. Introduction2. Bomin Linde LNG projects & operations3. LNG pricing & summary07/12/201516

A wide variety of LNG price indexations and flexiblecontract durations are being offeredContract DurationsAvailabilityShort-term contract ( 3 years)Offered by Bomin Linde LNG including specific conditionsMid-term contract (3-5 years)Offered by Bomin Linde LNGLong-term contract (5 – 10 years)Offered by Bomin Linde LNGLNG IndexationsTypeTitle Transfer Facility (TTF)GasNational Balancing Point (NBP)Hub/IndexLocationStatusCommentsThe NetherlandsDefaultGasUnited KingdomDefaultHenry Hub (HH)GasU.S.A.DefaultMarine Gas Oil Futures (ICE)OilEurope/USA/CanadaDefaultBrent Futures (ICE)OilEurope/USA/CanadaDefault CustomisedLNG pricingformulaswill beofferedindexed tothepreferredproduct.12/7/2015 Source: Bomin Linde LNG17

Commercial feasibility:Consider main drivers of LNG pricing at early stageFuel: Cost perspective in shipping (MWh)CommentsMost important drivers for competitive LNG price formaritime customers: Bunker location Bunker frequencyCost ofcapital Small-scale supply chain LNG volume (economies of scale) Long term partnershipFuel costsFuel costsLNG can be offered at an attractive discount to MGO,ensuring payback for additional investments in LNGEquipmentMGO07/12/2015 Source: Bomin Linde LNGLNGSmallScaleLogisticsSmall scale mark-upGasprice18

LNG market outlook:Additional supply in the global LNG market expectedLNG supplies 75% by 2020 (bcm)CommentsMain driver for increasing LNGvolume in the market: U.S. LNG exports: Sabine Pass (start 2015) Cameron LNG (FID) 5 other US terminalshave applied for exportlicenses Australian LNG exportBomin Linde LNG as an independent LNG supplier and its customerswill participate from a “buyer friendly” global market12/7/2015 UBS Research, IEA, Bomin Linde LNG Additional volumesexpected from 201619

Analysts see strong growth of LNG bunkeringMarket forecast (WoodMacKenzie 2014)MillionVolume LNG bunker market North Western Europe [tpa]Share LNG in total bunker market North Western 420272030LNGLNG is predicted to play an important role in the future’s maritime fuel mix,even if HFO/MGO remain dominating fuels12/7/2015 Source: WoodMacKenzie, Bomin Linde LNG20

Bomin Linde LNG GmbH & Co. KGDornbusch 2 - 20095 Hamburg, GermanyTel:Fax:Mail: 49.40.468959-0

Bomin Linde LNG – Profile Summary (1/2)Independent and flexible LNG supplier Partnership approach with tailor-made supply chain solutions Leading LNG bunker supplier in North-West EuropeExperienced and committed shareholders Linde Group:Engineering, industrial gases & cryogenic experience.Worlds’ first LNG barge "SEAGAS" operating in Stockholmconducted over 800 safe ship-to-ship fuelingoperations (AGA) Marquard & Bahls: International bunkering & trading expertise Oiltanking/Bomin: Worldwide storage and bunkering solutions for traditionalmaritime fuelsStrong port network and operational experience in approval process Port of Stockholm:Mid-scale terminal, bunker supply vessel Port of Hamburg:Small-scale terminal Port of Emden & Cuxhaven:Truck-to-ship bunkering Port of Klaipeda:FSRU and bunker supply vessel07/12/2015 Source: Linde, AGA. Marquard & Bahls, HPA, Port of Klaipeda, Port of Stockholm, Nports, Bomin Linde LNG,22

Bomin Linde LNG – Profile Summary (2/2)State-of-the-art LNG bunker supply vessel with proprietary technology DP 2 equipment allows for flexible offshore bunkering operations Re-liquefaction equipment onboard utilizing Brayton cycle technology Able to supply LNG at constant temperatures via sub cooling unit Fast LNG transer with rates of up to 1.250 cbm per hour Highly maneuverable with 2 x azimuth thrusters and 2 pump jets Compliant with all SIMPOS regulations Environmentally friendly operations – no gas combustion unitClosely involved in developing uniform international bunkering standards Committee member at the Society for Gas as Marine Fuel (SGMF) Committee member of DIN & ISO for LNG application in maritime industry Committee member of European Sustainable Shipping Forum (ESSF)Unique access to global LNG markets Multiple locations of supply with attractive commercial terms Large network of reputable multinational LNG suppliers07/12/2015 Source: DIN, ISO, Bomin Linde LNG23

07/12/2015 Source: Siemens, Bomin Linde LNG 12 LNG quality: state-of-the-art equipment onboard ensures accurate measurement of LNG quality & mass Gas Chromatograph & Coriolis Flow Meter Gas Chromatograph: LNG quality will be constantly analyzed by a gas chromatograph Gas chromatograph will regularly re-calibrate via .