This document discusses factors that will influence which ship types and routes are early adopters of LNG fuel, including ship volume and weight limitations, voyage length, fuel price savings potential, gas availability, and cargo space requirements. It presents a matrix positioning different ship types based on these attributes, and suggests that container ships, car carriers, ferries, and cruise ships may be early adopters, while bulkers and tankers may be last or slow to adopt LNG fuel due to challenges around space requirements and gas availability on global routes.

1. © Wärtsilä INTERNAL 5.8.2016 [Presentation name / Author]1
LNG Fuel Marine Adoption;
How soon,
Which routes,
& Vessel types?
LNG18
PERTH CONVENTION CENTER
11-15 APRIL, 2016
PERTH, AUSTRALIA
#GasBassador #WartsilaKnowsGas
@wartsilacorp

2. © Wärtsilä INTERNAL
19 May 2014
“… occupy too much space, so the ship will
hardly be able to carry cargo anymore…”
5.8.2016 [Presentation name / Author]2
Source: Ship Bunker World News
19 May 2014
“…. carrying enough supply of the fuel is too
difficult”
Respectfully agreed & a definitive LNG fuel view… but where is this
positioning relative to other vessel & trade perspectives?

3. © Wärtsilä INTERNAL
Positioning Map Ship Volume
Limited
5.8.2016 [Presentation name / Author]3
Ship Weight
Limited
Long
Oceans
Voyage
Short
Coastal
Voyage
(ECA?)
2 Ship Types: Volume out before draft marks, weight out at draft marks;
2 Voyages: long oceans or short coastal

4. © Wärtsilä INTERNAL
Ship & Voyage Attributes Ship Volume
Limited
5.8.2016 [Presentation name / Author]4
Ship Weight
Limited
Long
Oceans
Voyage
Short
Coastal
Voyage
(ECA?)
Ship positioning's; typical with many gradations
BOX LINER
LNG ( on gas )
CAR CARRIER
BOX FEEDER
RORO
FERRY / CRUISE
PRODUCT
SHUTTLE
GREAT LAKER
ATB
TANKER
BULKER
OBO

5. © Wärtsilä INTERNAL
Ship Range & Gas Availability Ship Volume
Limited
5.8.2016 [Presentation name / Author]5
Ship Weight
Limited
Long
Oceans
Voyage
Short
Coastal
Voyage
(ECA?)
CONTAINER
LNG ( on gas )
CAR CARRIER
BOX FEEDER
RORO
FERRY / CRUISE
PRODUCT
SHUTTLE
GREAT LAKER
ATB
TANKER
BULKER
OBO
Regional gas easier Global gas challenging
Gas
Compelling
Remain
Traditional
Fuel

6. © Wärtsilä INTERNAL
Liner Trade / Tramp Service
5.8.2016 [Presentation name / Author]6
Fixed
Fixed schedules and ports = repeatability, early gas infrastructure seeks steady demand ports
Fixed
Ports
Random
Schedule
Random
Remain
Traditional
Fuel
Gas
Compelling

7. © Wärtsilä INTERNAL
Vessel Range & Fuel Price Savings
5.8.2016 [Presentation name / Author]7
Weak
Greater fuel cost impact ( quantity x price ) = greater gain for adopting gas fuel
Low
Price Savings
Strong
Ship energy
intensity
Speed & Power
High
Remain
Traditional
Fuel
Gas
Compelling

8. © Wärtsilä INTERNAL
Ship & Voyage Attributes Ship Volume
Limited
5.8.2016 [Presentation name / Author]8
Ship Weight
Limited
Long
Oceans
Voyage
Short
Coastal
Voyage
(ECA?)
Gas availability & affordability issues… frequency bunker sites, route
Gas
Compelling
Greater
Gas
Spread
Savings
CONTAINER
LNG ( on gas )
CAR CARRIER
BOX FEEDER
RORO
FERRY / CRUISE
PRODUCT
SHUTTLE
GREAT LAKER
ATB
TANKER
BULKER
OBO

9. © Wärtsilä INTERNAL
Ship & Voyage Attributes Ship Volume
Limited
5.8.2016 [Presentation name / Author]9
Ship Weight
Limited
Long
Oceans
Voyage
Short
Coastal
Voyage
(ECA?)
Gas availability & affordability issues… frequency bunker sites, route
Remain
Traditional
Fuel
CONTAINER
LNG ( on gas )
CAR CARRIER
BOX FEEDER
RORO
FERRY / CRUISE
PRODUCT
SHUTTLE
GREAT LAKER
ATB
TANKER
BULKER
OBO
Small
Gas
Spread
Savings

10. © Wärtsilä INTERNAL
Vessel Space Requirements
5.8.2016 [Presentation name / Author]11
Weight
Does gas cannibalize cargo space, it depends. Cruise may find passenger’s halo effect for
green emissions themes.
Low
Payload
Limit Volume
High
Remain
Traditional
Fuel
Gas
Compelling
Ship energy
intensity
Speed & Power

11. © Wärtsilä INTERNAL
Ship & Voyage Attributes Ship Volume
Limited
5.8.2016 [Presentation name / Author]12
Ship Weight
Limited
Long
Oceans
Voyage
Short
Coastal
Voyage
(ECA?)
Positioning and LNG fuel adoption rates, it depends !
BOX LINER
LNG ( on gas )
CAR CARRIER
BOX FEEDER
RORO
FERRY / CRUISE
PRODUCT
SHUTTLE
GREAT LAKER
ATB
TANKER
BULKER
OBO
EARLY
LASTFAST
SLOW