1

HIGHLIGHTS

VLGC: Rates still in the region of US$ 3 million

Coaster: Continued down-ward pressure on rates

Handy: Handy Size market remains strong

«You don’t have to worry about burning bridges as long as you are building your own!»

Another quiet week in the VLGC segment with limited activity and The Baltic LPG Index has dropped further getting closer to US$ 100. There seems to be some oversup-ply of shipping in August and owners are holding back, waiting for more activity in September. There are no delays nor reduc-tions announced and we can ex-pect more activity next week and the week to come. West of Suez there seems to be more availability of vessels as well and the high “West Premiums” have come off a bit this week with a Western cahretrer securing below US$ 100 basis a VLGC from Houston to Europe. We will see an increase of US LPG export in the months to come and several Hoston cargoes are on the way, and will continue to go East, con-sequentely several VLGC s will have to ballast back to cover the demand.

The Tampa Contact Price for Sep-tember negotiations started this week, there will be an increase for sure, some claim as much as US$ 70. So far we have not seen any Yuzhnyy tons for US destina-tion in August, neither Russian nor Ukrainian origin. In Yuzhnyy prices still remain in the low US$ 450 but expectations for Septem-ber are around US$ 470/500. In The Middle East Gulf has picked up latest Fob sale at US$ 512. The firmer ammonia market is very much affected by the uncer-tainty in Ukraine, but also issues like gas limitations in Egypt as well as Trinidad and shutdowns in Australia as well as Indonesia are certainly adding to the situation. The Clipper Orion are loading a full cargo from Yuzhnyy this week end. This cargo was originally meant for the US market, howev-er, as this is Russian origin, the cargo is now likely to go to Korea. The Yuzhnyy line-up for August is so far at 270 000 tons, a total of 11 shipments out of 2 cargos heading East.

The Handy Size market continues to remain strong with not much activity to report for this week. Focus persists to shift for-wards towards workable vessels available in September. The Mathraki was fixed by Stasco and will once again return to Houston to load cargo, with multiple dis-charge options.

This week saw another slight increase in activity in both the Mediterranean and North West European coaster market. The amounts of cargoes in the market are however far from sufficient to decrease the amount of workable vessels on a prompt basis in North West Europe and the Medi-terranean. Freight rates there-fore still remain under downward pressure.

COASTER

HANDY NH3 VLGC

Week 33

Weekly Gas Report

-Shipbrokers and consultants since 1919-

-500,000

-200,000

100,000

400,000

700,000

1,000,000

1,300,000

1,600,000

1,900,000

2,200,000

2,500,000

2,800,000

3,100,000

3,400,000

3,700,000

4,000,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51

US$/month

Week no

VLGC Timecharter Equivalent (TCE)

5 YR LOW 5 YR HIGH 5 YR AVG 2014 Ytd

2

-Shipbrokers and consultants since 1919-

LPG spot market un-

changed in Asia

North West European propane prices is seeing a decline from last week, but have however picked up towards the week’s end. Cif price for butane has been falling due to weaker naphtha, while the fob level has firmed. As mostly all available storage capacity is filled in North West Europe, it remains to be seen where prompt tonnages can be placed. The Middle Eastern fob dis-counts for September propane rolled over at US$ 5. The pro-pane CP swaps for September are seeing prices at US$ 750

which is an increase from last Thursday. Butane values were reported at US$ 790, up from last week. Despite higher crude oil prices the Asian LPG spot market was unchanged. As a result of high inventory pressure, Chinese traders were indicating their interest in reselling their second- half September cargoes. How-ever possible buyers remained conservative to commit to pur-chases, as they were waiting for VLGC freight rates to stabilize. In the US, propane values at Mont Belvieu fell in tangent with declines in the crude benchmark and ended at US$

102. Despite storage limitations, activity continued to be robust at the LST and EPC terminals. Most volume traded was seen at the EPC terminals, as two large traders were heard in the mar-ket buying propane. The butane values lagged behind the motor gasoline weaknesses and ended at US$ 124.5

LPG

July saw an increase in LNG de-mand from Japanese utility com-panies. Japanese power compa-nies account for two-thirds of the country’s total LNG imports, and import levels of the ten regional power companies rose by 5.2 per cent y-o-y to 5.04 million tons last month. Royal Dutch Shell has agreed on two separate deals leading to the company’s exit of its on-shore gas assets Pinedale and Haynesville. In a transaction with Ultra Petroleum, Shell has trad-ed 155,000 net acres in the Mar-cellus and Utica Shale areas in Pennsylvania and a cash pay-ment of US$0.925 bn in ex-

change for 100 per cent of the company’s assets in Pinedale, Wyoming. In a separate agree-ment Shell is selling its Haynes-ville asset in Louisiana, including associated field facilities and infrastructure, for $1.2 bn to Vine Oil and Gas LP, and its part-ner Blackstone. The marine constructions works on the Aqaba LNG project in Jordan started this week, as Dutch construction company, the Royal Bam Group, an-nounced that the first pile has successfully been driven. The new LNG jetty is expected to be ready for hand over to the Aqa-ba Development Corporation in April 2015. Last week it became known that the Federal Energy Regulatory

Commission (FERC) authorized the application of Freeport LNG Development LP to construct and operate facilities for natural gas liquefaction and export from its LNG import terminal near Freeport, Texas. This makes Freeport LNG Development LP the third project to receive FERC approval for LNG export. The FERC has also recently issued a Draft Environmental Impact Statement for Excelerate Energy and the Puerto Rico Electric Power Authority’s Aguirre Offshore Gasport Project outside Puerto Rico, stating that the project would result in limited adverse environmental impact, mostly occurring during production.

LNG

3

FIXTURES

VALUATIONS We provide expertise valuations for a number of ship owning and banking clients worldwide, covering all types of gas carriers either on a regular basis (quarterly, semi-annually) or on an ad hoc basis. Our experienced team is fully updated on the latest secondhand and new-building price trends and maintain a comprehensive database with historical prices. We strive to maintain an unbiased approach to valua-tions, which are carried out in due diligence and in accordance with established ISO procedures.

RATES

-Shipbrokers and consultants since 1919-

The Baltic Exchange LPG Index 44’LPG Ras Tanura/Chiba Last Week This Week Trend

Weekly Baltic average (US$/pmt) 114.51 105.97 Softening

Baltic TC Equivalent (US$/pcm) 3,073,667 2,788,461 Softening

(US$/pd) 101,041 91,665 Softening

12 months Time Charter - Indicators

Last Week This Week This Week Trend

(US$/pd) (US$/pd) (US$/pcm)

3.200 cbm S/R 8,218 8,218 250,000 Steady

3.500 cbm P/R - East 7,068 7,068 215,000 Steady

3.500 cbm P/R - West 7,396 7,396 225,000 Steady

5.000 cbm P/R 9,862 9,862 300,000 Steady

6.500 cbm S/R 13,971 13,971 425,000 Steady

10.000 cbm ETH 19,395 19,395 590,000 Steady

20.000 cbm S/R 32,380 32,380 985,000 Steady

35.000 cbm 32,051 32,051 975,000 Steady

60.000 cbm 52,597 52,597 1,600,000 Steady

82.000 cbm 59,172 59,172 1,800,000 Steady

SPOTVessel Built Cbm Qty Cargo Load Disch Laycan Rate US$ Charterer

CAPTAIN JOHN NP 2007 80595 44' LPG RAS LAFFAN FAR EAST AUG 17-18 RNR E1

AQUAMARINE PROGRESS 2010 83278 44' LPG RAS LAFFAN ECI AUG 24-25 3.5 MILL BSS 1:3 BPCL

Musanah 2009 81629 44' LPG RAS LAFFAN FAR EAST AUG 23-24 LOW 100S PETREDEC

HELLAS SERENITY 2008 80791 44' LPG BETHOUIA FAR EAST SEPT 3-5 165 VILMA

AURORA LEO 2008 80657 44' LPG HOUSTON SANTOS SEPT 5-6 95 BSS HOUSTON/FLUSHINGPETROBRAS

SUNNY BRIGHT 2004 77340 44' LPG MAA FAR EAST SEPT 6-7 RNR STATOIL

CRYSTAL MARINE 2003 80138 44' LPG WESTERNPORT FAR EAST SEPT 6-8 111 BHP

HAPPY CONDOR 2008 9000 3' ISOBUTANE HOUSTON EC MEXICO 15-17 AUG RNR PMI

GITTA KOSAN 1990 4415 2' PROPANE TEESPORT OPTS 15-17 AUG RNR CSSA

GAS LEGACY 1998 3514 1'8 BUTANE STANLOW ARA 10-12 AUG RNR ESSAR

LADY MARTINE 1998 3441 1'8 BUTANE FAWLEY PORT JEROME 17-18 AUG RNR PETREDEC

SYN TURAIS 2007 3927 1'4 BUTANE-1 ANTWERP DUNKIRK AND BRINDISI18-20 AUG RNR ENI

MATHRAKI 2003 22779 12'5 LPG HOUSTON OPTS 24-26 SEPT RNR STASCO

B GAS LYDIA 1993 1760 1' RAFF 1 ANTWERP OPTS 15-16 AUG RNR CSSA

CESKA 2003 2939 FC PROPANE TEESPORT GDANSK 15-17 AUG RNR SHV

GAS EVOLUZIONE 1996 3514 FC BUTANE STANLOW ARA 17-19 AUG RNR ESSAR

Gas Oriental 2003 35533 FC NH3 RUWAIS RICHARDS BAY 19-20 AUG RNR MUNTAJAT

4

Lorentzen & Stemoco AS Munkedamsveien 45

8th floor, lift E PO Box 2029 Vika,

N-0125 Oslo, Norway

www.lorstem.com

PRODUCTS & PRICES

-Shipbrokers and consultants since 1919-

Name Office Mobile Yahoo Messenger Brokers

Anders Lalim (+47) 2252 7707 (+47) 905 30 930 la_limno Martin Engelsen Hals (+47) 2252 7783 (+47) 909 39 949 martinengelsenhals Katie Du (+47) 2252 7736 (+47) 901 54 760 katiemin1209 Sebastian Isaksen (+47) 2252 7737 (+47) 958 00 214 sebastian.isaksen Henrik Konow Verlo (+47) 2252 7755 (+47) 924 65 307 hkverlo

Research

Knut Stangebye Olsen (+47) 2252 7703 (+47) 952 48 490 knutstangebyeolsen

Operation Håvard Teigland (+47) 2252 7733 (+47) 980 43 763 havardteigland Spyros Bampetas (+30) 2108 9000 62 (+30) 6973 38 2273 spyrosbampetas Email: Phone: Fax:

lorgas@lorstem.no (+47) 2252 77 00 (+47) 2252 78 64

LPG, Natgas, Crude, IFO380 Propane Change from Butane Change from usd/pmt last week usd/pmt last week

NWE CIF ARA Small 635.00 -1.89% 739.00 -5.28% US Mt Belvieu Non-LST 532.03 2.16% 562.99 2.67%

NWE Propane Swaps Q1 forward 691.00 -0.43% Q2 forward 725.00 0.14%

MEG Contract Price 750.00 0.97% 790.00 1.80% Japan CFR 822.50 0.06% 876.50 -0.63%

NG, Crude & IFO380 NG, NYMEX 3.80 0.00% usd/mmbtu WTI, Crude - Spot 95.42 -2.88% usd/bbl IFO380, Fujairah 592.50 -1.69% usd/pmt Various Sources