Status of the activity - January 2014

Since the announcement from TEN-T (now INEA) of the successful application work has been focused on:

1. Final decision on vessels main parameters and the shipyard tendering process
2. Elaborating and securing commercial financing
3. Preparing  and initiating new building phase which include
    a. Discussions with component manufacturers
    b. Discussions with regulatory bodies
    c. Negotiations and discussions with yards

A LOI (letter of intent) was written with LNG supplier Skangass and Preem for a 10 year time-charter of the vessel. The vessel will be available for end-users of LNG as a maritime fuel and provide LNG bunker service to “any commercial” ship-owner/operator. The bunker vessel will by this be available to third-party access (TPA).

Trading area will be between Stavanger, Frederikstad, Brofjorden, Gothenburg and Skaw. Negotiations for the contract have proceeded during last year.

Main dimensions have been locked and an outline specification produced. Compared to the initial vessel particulars the beam of the vessel has been increased from 18m to 19m, in order to increase the cargo carrying capacity.

With the outline specification completed, negotiation with yards and classification societies has started. Due to high standard demand on technical performance and solutions along with importance of meeting delivery dates, the vessel has been chosen to be built in Europe. Nine European yards was contacted for offers and evaluation of the offers was ongoing during the end of 2013.

Further discussions will be held with the most interesting contractor(s) with the aim to have a signed building contract in March/April 2014. After the building contract is signed the project will enter its most intensive period.

Milestones Activity 2

The project has two milestones, No 4 & No 5. Milestone 4 was postponed to 31st of May 2014 due to previous financial (commercial) uncertainties, which in turn delayed the design of the final ship version. Milestone 5 has also been put forward for the same reason.  Postponing the activity milestones will not affect meeting the final project deadline.