IMSK SSLNG update - the concept of gas for stranded customers

The IMS SSLNG or small-scale LNG project (as initially announced on 23rd of January 2017) is continuing to make good progress towards implementation. In monitoring and helping out in the execution of this "Proof of Concept" SSLNG project in Africa we have seen that all site-specific equipment required has been shipped to its location and installed - or for some parts already manufactured and modular ready to be installed. All equipment is site specific and made for this SSLNG solution and paid for by the clients. The power plant clients, with support of the IMS team of professionals, are getting ready with all these facilities to receive and consume gas in the form of LNG. Complete gassing up and cooldown of the receiving and regas facilities with liquid nitrogen has been performed for the first power plant and no major deficiencies has been observed.

In line with the project progression on site, the first gas was expected to be transported in July 2017 under the reconfirmed agreements of 24 May 2017 and 1 June 2017. Financial close under the agreements has been pending completion of the full package of project agreements, which in turn been reliant on finalization of all relevant government approvals. We are confident that our client is able to obtain these Government approvals. However, these transactions are located in Africa where such commercial deals are prone to prevarications and delays. In anticipation of these approvals the commissioning for "first gas" has been deferred and we expect financial close to occur in August rather than in July and with the results that our ships will load first LNG for the client in August.

If you have any questions, please contact:
Bente FlÝ, Chief Financial Officer, on telephone +47 23 12 04 00 /+47 91 64 56 08 or by e-mail: bente.flo@skaugen.com.

I.M. Skaugen SE is a Norway based Marine Transportation Service Company, with a focus on Innovative Maritime Solutions. Our core business activity is to provide logistics solutions for seaborne regional distribution of liquefied gases such as LNG, petrochemical gases, ethane as well as LPG.

The Skaugen Group currently operates a fleet of 15 advanced gas carriers. In this fleet we have 6 innovative and unique vessels with the capacity to transport LNG in addition to petrochemical gases and LPG. We have pioneered the Small Scale LNG distribution business with this unique development project. We recruit, train and employ our own team of seafarers.
IMS employs approximately 500 team members globally and with nearly 30 nationalities represented. We manage and operate our global activities and service our clients from our offices in Singapore and Oslo.