LNG-terminal Tornio Manga LNG Oy

Shareholders Ownership % Outokumpu 45% Skangas 25% SSAB 25% EPV 5%

Manga Terminal Oy is subsdiary of Manga LNG Oy

Manga LNG Oy will purchase and sell LNG to it’s Shareholders.

Manga Terminal Oy is investing the LNG terminal and will operate the terminal.

2 Terminal project

• Investor Manga Terminal Oy • EPC supplier Wärtsilä Projects Oy • Terminal capacity 50 000 m3 • Investment 110 M€ • LNG deliveries starting from Q1/2018 • 260 man years

3 What is LNG? Fuel oil vs. LNG 100% • LNG = Liquefied Natural Gas 90% • Liquid volume 1/600 comparing to gas volume 80% 70% • LNG temperature -163˚C 60% 50% • Features: 40% • As a fuel similar with natural gas 30% • Enviromental gas. Sulphur content <0,1% 20% 10% • No flaming as a liquid 0% SOx NOx Hiukkaset CO2 • Price steady

LNG is logistical solution to get natural gas available outside of natural gas pipe network.

4 Nordic natural gas network

In EU 24% of primary energy production by natural gas • 8% • 2% Natural gas network in Nordic countries very limited • No plans to extend the existing gas network in Finland

5 Emission control area

Emission controlling:

SOx No emissions allowed since 2015 NOx Emission restrictions (80%) starting from 2021? CO2 Emission restrictions coming Particles Emission restrictions coming

LNG fulfills existing (SOx) and coming emission restrictions already.

6 Tornio Luleå Bay of Bothnia Umeå Sweden Gulf of Finland Bothnia Sweden Gävle Finland Stockholm Nynäshamn Lysekil Göteborg

Klaipeda Cyprus

Świnoujście LNG Terminal Core port Comprehensive port Other port

7 LNG Supply Chain

Vaporization to fuel gas Bunkering BOG

Ship delivery (18000m3)

LNG Vaporization to power plant

Coastal delivery Truck delivery LNG

Satellite terminal Railway delivery

8 Utilization of LNG in industry

Natural gas as a fuel: - energy efficient - low emissions - price steady

Possible utilization in: • Energy production • Industrial processes • Raw material

Natural gas is replacing e.g. oil and liquid gas in industry.

Outside of network requires LNG-tank, vapourizer and modifications in process.

9 LNG in transportation

EU clean strategy 2025: • LNG bunkering capability in 139 core ports in Europe • LNG refueling stations for heavy transport, max 400km • CNG refueling stations for cars, max 150km

Ongoing projects: • 35 new refueling stations for cars • 4 new refueling stations for heavy transport vehicles • Local projects

10 New LNG vessels coming • New LNG fueled vessels are coming to market: • Tallink, Containership, ESL shipping, Terntank/NEOT, Norlines... • The first LNG icebreaker (Polaris) completed in Finland

11 1st LNG delivery to Finland

10.7.2016 arrived 1st LNG delivery to Finland

LNG was unloaded at Pori terminal. Terminal is in commissioning phase, commercial use starting in August 2016

LNG is already now available in Finland outside of natural gas network

12 Kiitos

Mika Kolehmainen 040-8309509 [email protected]

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