Title: Cooperation program of clean energy shipping with LNG fuelled ship

1. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Title: Cooperation program of clean energy shipping with LNG fuelled ship Name: Ms. Lee Nan Organization: Ministry of Oceans and Fisheries Economy: Republic of Korea

2. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Contents • Background • Why choose LNG as fuel? • Status & Prospect for LNG fuelled ship • Our goals with LNG fuelled ship • Future works

3. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Background (1/3) • 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) (Million DWT) (Million DWT) 101% rise 590% rise (Year)

4. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Background (2/3) Green-Ship Technologies Offshore Technologies

5. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Background (3/3) (1) Promoting sustainable and long-term growth The 7th APEC Transportation Ministerial meeting held in San Francisco, 14 Sep. 2011 ‘The action agenda to move APEC toward and Energy efficient, Sustainable, Low-Carbon Transport Future’ (2) Intensive cooperation to foster innovative growth The 20th APEC Economic Leaders’ declaration in Vladivostok, 8~9 Sep. 2012 ‘Technical and economic cooperation among APEC economies’

6. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Why choose LNG as fuel? • Environmental Issues • Global warming • Destroying forest / Acid rain • Melting glacier Regulations for the prevention of air pollution - CO2 → EEDI, EEOI, SEEMP - IMO prohibits NOx & SOx emission

7. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Why choose LNG as fuel? (2) Fuel Cost (outlook) $13 ~ $22 per mmBtu $3 ~ $15 per mmBtu Vs. Oil Price Competitiveness LNG Price Competitiveness ►Decrease Oil Production ►Instability of Oil market ►Increase LNG Production in Qatar, Australia and etc. ►Shale gas in U.S.A Source : Man Diesel, GL

8. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Why choose LNG as fuel? (2) Fuel Cost LNG Price : 13 USD/mmBTU Source : MAN Diesel LNG price is about 30% cheaper than the bunker price

9. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Why choose LNG as fuel? (3) Alternative technologies to meet emission criteria

10. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Euro-centric LNG fuelled ship

11. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 LNG demand outlook for ship fuel Unit: million tons Source : Gazprom

12. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Our Goals with LNG fuelled ship (1/2) 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 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

13. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Our Goals with LNG fuelled ship (2/2) 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 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 • Global status of LNG fuelled ship • Select of LNG fuelled ship service model • Proposal of government’s role and task for stimulating LNG fuelled ship

14. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Further to be discussed Clean Port Control LNG Bunkering Infra

15. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Future Works • Develop new business model between APEC economies • Enhance the competitiveness of seaborne trade • in APEC region • (3) Find innovative policy for new technologies and • cooperative solution

16. “Will you join us the cooperation program of clean energy shipping with LNG fueled ship?” Thank you for your attention!