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Doha Natural Gas Conference & Exhibition

MARPOL ANNEX VI – impact on LNG transportation 11 March 2009 Glenn O’Brien Clyde & Co LLP Doha Office Level 9, Qatar Financial Centre West Bay, Doha The State of Qatar

MARPOL Annex VI  MARPOL 73/78 Annex VI  What is it?

 When did it enter into force?

 Who does it apply to?

MARPOL Annex VI  The obligations and requirements under Regulation 13 & 14:  The sulphur cap 4.5% m/m  Establishment of SOx Emission Control Areas

MARPOL Annex VI  SECA’s  The Baltic Sea  The North Sea / English Channel

MARPOL Annex VI  Additional National Requirements  EU Council Directive 2005/33/EC By 1 January 2010 all ships berthed at EU Ports 0.1% Cold-ironing exemption From 1 January 2008 to 31 December 2009 0.1% for MGO in EU territorial waters From 1 January 2010 sale of MGO with a sulphur content in excess of 0.1% banned in EU member States

MARPOL Annex IV  Recent Developments  MEPC meeting 6-10 th October 2008 SOx reduction to 3.5% 0.5% by 1 January 2020  SECA’s SOx reduction to 1% from 1 July 2010 0.10% by 1 January 2015  US ratification – 8 February 2009 Compliance inspections introduced Marine Vessel Emissions Reduction Act 2008 (not passed) proposed a reduction to 0.1% from 1 January 2010

MARPOL Annex VI  Effects on LNG shipments and transport documents?

 Qatar has not acceded to Annex VI  LNG shipments from Qatar into Europe & the US  Flag State requirements  Monitoring and compliance inspections  Liabilities?

MARPOL Annex VI  How to Comply?

 Storage and testing  Accuracy of Documents  Bunker Delivery Notes  Voyage monitoring / planning  Switching of fuels to comply at point of entry to SECA’s  Ensuring compliant bunkers available enroute & at ports of loading/discharge

MARPOL Annex VI  REVIEW Transportation Documents  Charterparty clauses BIMCO Bunker Fuel Sulphur Content Clause INTERTANKO Bunker Emission Clause  Bunker Supply Contracts Intertanko Annex VI Clause for Bunker Supply Contracts

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