FSRU Toscana A History in the Making

60th SIGTTO Panel Meeting 8th - 9th October 2014 Giovanni Giorgi OLT Operations Manager

The Project from dream to reality

Conversion of the LNG carrier 'Golar Frost' H1444 into a Floating Storage Regasification Terminal FSRU Toscana moored 12 nmiles from the Italian coast between Livorno and Pisa, in sea depth of 120 meters, connected to the national gas grid through a pipeline of 36.5 km, built and operated by Snam Rete Gas

The Authorization process and the Conceptual/Feasibility studies started on 2002

EPCIC Contract awarded March 2008, Golar Frost purchased June 2008, conversion started June 2009 in DDW (Dubai)

Terminal arrived offshore Livorno July 2013, 4 StS Cargo Transfers done during Commissioning and has been fully operational since 20th December 2013

FSRU Toscana aerial view

Why Offshore LNG Regas?

Why offshore? Difficulty to find a suitable

location along the Italian coast for an onshore LNG regasification terminal that would be approved for construction and operation

6 onshore terminal locations were studied during 2002, yet the location considered most likely to succeed was the offshore one

Zero environmental / safety impact on coastal cities

Minimal visual impact from coastline

Why FSRU? Moss Maritime had been

investigating the concept early 2002 and had done feasibility studies which became the starting basis of the project

Why offshore Livorno? Strategic entry point into

Italian Gas Grid with most consumers in northern Italy

Exact location had been used to dispose the dredged waste from expansion of Port of Livorno many years earlier, hence undersea life is minimal

Close proximity and full availability of all required marine support services from Port of Livorno

Galsi

TMPC

Porto Empedocle

Greenstream

Priolo

Gioia Tauro

San Ferdinando

Igi

Brindisi

TAP

Falconara

Rovigo

TAG

Zaule

Monfalcone

Transitgas

Panigaglia

Rosignano Marittimo

Distribution of gas demand and infrastructure in Italy

Consumption of Gas by Region Existing and planned gas infrastructure in Italy

Italian demand for gas is concentrated in the central northern regions

Existing and planned importation capacity is concentrated on the Ionian / Adriatic side

80% of the demand comes from the Centre-North OLT is a strategic entry point into national grid resulting in lower connection costs compared to south and east

Puglia

Calibrata Sicilia

Lombardia

Abruzzo

Friuli Venezia Giulia

Marche

Emilia-Romagna

Veneto

Molise

Basilicata Campania

Lazio

Toscana

Liguria

Piemonte

Valle dAosta

Umbria

Trentino-Alto Adige

Existing pipeline

Planned pipeline

Existing regas terminal

Planned regas terminal

OLT

Location of the Terminal - Offshore

Main Features

Thruster Wobbe Index Corrector

Turbo generator

Blister

Unloading arms

Regasification plant

Single point mooring

Complex Design & Construction Aspects

Newly built turret welded to the bow of the FSRU acts as single point mooring to allow the unit to weather vane, designed for the 100Y condition

Huge bilge keels added in order to stabilise the FSRU

Regasification module built offsite and installed with single 2,000 tonnes lift, max capacity of 450 t/hr (15 MSm3/d Gas), keep-cool mode via micro-sendout for instantaneous sendout

Significant structural changes to existing LNG carrier were required for conversion into a Floating Storage & Regasification Unit (FSRU)

Tanks Consists of 4 spherical Moss-type tanks More suitable for partially-filled terminal in offshore environment (anti-sloshing)

2 x 10 MW Steam Turbogenerators installed in engine room in addition to the 2 x 3,5 MW ones

Very Low Environmental limits: Max DT of SW is -4.6 K, Max free chlorine in SW of 0.05 mg/l (drinking water for human consumption is 0.2 mg/l), No venting except for emergency , NOx emissions limit of 150 mg/ Nm3, max limit of NOx emissions of 100 ton/y

Smaller module for nitrogen generation (Wobbe Index Correction) also built offsite to deliver on-spec sales gas + fiscal quality control and measurement module

DCS, ESD, F&G completely re-designed

LNG loading arms (traditional Jetty-type) designed with largest ever motion capability for offshore use in side by side up to 2,5m Hs @ 12000 cm/h for LNGC 65k to 155k cm

New high capacity transfer pump installed in each aluminium Moss sphere tank

Terminal is completely self-sufficient and has the same operational features as typical onshore regasification terminals

Detailed Motions Analysis

Model Test vs Reality

Side by Side video 1 Model Test Side by Side video 2 - Reality

Model Test vs Reality

Loading Arms video 1 Model Test (courtesy by FMC)

Loading Arms video 2 - Reality

Rules Compliance

The Terminal complies with International regulations as well as Italian National and Local requirements:

Italian Law and Permits (Extensive)

IGC code

Recognised Industry guidelines, SIGTTO and OCIMF

RINA Class Rules (for LNG Floating Units)

SOLAS

MARPOL

ISM & ISPS

And by incorporating the necessary local safety and environmental requirements

Conversion work in progress

Conversion work in progress

FSRU conversion completed in Dubai

16

Works progress offshore works

17

Works progress 32 onshore pipeline

FSRU towed from Dubai to Livorno

FSRU Installation Complete

First Side-by-Side Mooring Operation

First Ship-to-Ship LNG Transfer

Operations & Maintenance

Management and responsibility for all operations has been subcontracted to ECOS Srl a joint venture company founded in 2010 by Fratelli Cosulich SpA (40%) and EXMAR (60%)

ECOS has sole responsibility as Armatore for the terminal

Fratelli Neri SpA provides all the marine support service:

Custom-built Guardian Vessel with fast rescue boat and emergency evacuation for 40 persons

2 x Custom built tugs of 110 tonnes bollard pull

Custom Built Crew Boat max. speed 28 knots

Berthing Operations Training

Full-mission bridge simulations for LNGC, FSRU and Tugs at Marin (Holland)

Training provided for FSRU, LNGC, Tugs Captains, Mooring/Loading Masters, Port of Livorno Pilots

Berthing Operations Training

From training to reality

Safety & Security

Significant rules imposed by Maritime Authority must be respected:

2 mile exclusion zone to be enforced 24/7 via Guardian Vessel

All transfer of personnel and materials must be prior-approved by Maritime Authority and originate only from dedicated onshore base, design and operated in accordance with ISPS rules

24/7 watch from wheelhouse despite radar monitoring in CCR and on Guardian Vessel

Port of Livorno Pilots onboard LNG Carrier during whole maneuver and LNG transfer operation

Port of Livorno Mooring Gang onboard terminal during ship-to-ship mooring operation

Integrated Radar and CCTV system of Maritime Authority to become operational in future

OLT Energy Toscana (3.73%) The company that originally developed the project

OLT Energy

Offshore LNG Toscana SpA (OLT) Shareholders

Golar LNG (2.69%) Shipowner specialized in the management of LPG carrier and LNG tanker fleets, belonging to the Fredriksen Group (owner of the largest oil tanker fleet in the world)

IREN Group (46.79%) Iren Mercato 41,71% and ASA Livorno 5,08% IREN listed on the Italian Stock Exchange and founded in July 2010 from the union between IRIDE and ENI

E.ON Global Commodities (46.79%) Company belonging to the E.ON Group, one of the worlds largest private energy group, listed on the Frankfurt stock exchange

Where now?

Terminal is fully operational and open for business

Regasification capacity slots are marketed on a monthly basis on the company website

The terminal is currently with LNG and available for gas export at short notice

Italian government has declared OLT terminal as a strategic infrastructure for the Italian energy system due to the peak-shaving availability in the event of interruption of pipeline gas supply during critical winter months

Expectation is for increased utilisation resulting new LNG export projects from North America, East Africa and Australia from 2017 onwards

LNG bulk-breaking service for evolving LNG bunkering infrastructure in Mediterranean under study

Thank you for your attention www.oltoffshore.it

FSRU ToscanaA History in the MakingThe Project from dream to reality FSRU Toscana aerial viewWhy Offshore LNG Regas?Distribution of gas demand and infrastructure in ItalyLocation of the Terminal - OffshoreMain FeaturesComplex Design & Construction AspectsDetailed Motions AnalysisModel Test vs RealityModel Test vs RealityRules ComplianceConversion work in progressConversion work in progressFSRU conversion completed in DubaiSlide Number 16Slide Number 17FSRU towed from Dubai to LivornoFSRU Installation CompleteFirst Side-by-Side Mooring OperationFirst Ship-to-Ship LNG Transfer Operations & MaintenanceBerthing Operations TrainingBerthing Operations TrainingFrom training to reality Safety & SecurityOffshore LNG Toscana SpA (OLT) ShareholdersWhere now?Thank you for your attentionwww.oltoffshore.it