Society of International Gas Tanker &Terminal Operators Ltd

Annual Report

Report and Financial Statementsto 31st December 2010

ContentsPresident’s Forward

General Manager’s Report

SIGTTO at a Glance

List of Directors

Industry Facts and Figures

Audited Statement of 2010

Accounts

Annual Report

PRESIDENT’S FORWARD

Our Society consistently and relentlessly seeks to protect the public, our people, the environment and our assets. The public can take additional comfort from the continued safe operations in the gas transportation sector. Members’ commitment to excellence and diligence in execution underpins this success.

While the public can take additional comfort in safe operations, members’ seafarers face heightened exposure transiting the high-risk piracy area off the coast of Somalia, in the Gulf of Aden and the wider Indian Ocean. At this writing, strong interest in privately contracted armed security personnel (PCASP) on board ships has led to approval of Interim Guidance to Shipowners and Interim Recommendations for Flag States regarding use of PCASP in these high risk areas by the IMO’s Maritime Safety Committee (MSC) in its 89th session in May 2011. Use of PCASP is a complex issue which will no doubt receive the highest level scrutiny within members’ organizations. The response to this risk demands a dynamic approach of ongoing assessment and upgrade of measures to current Best Management Practice. Thank you to all members who are engaged throughout our

industry in the evolution of BMP both today and in the future. We must take all prudent measures to safeguard our people.

The Board of Directors has continued with the practice at our meetings every six months of having in-depth dialogue around strategic issues such as piracy, manning and training. This dialogue was initiated at the request of members in late 2008. Our Society must continue to be responsive to the needs of membership. The best way to ensure this outcome is for members to demand the most of our leaders and board members.

Bill Wayne’s General Manager’s report highlights the achievements of our society in 2010. This work occurs because of the passion of the SIGTTO staff and the members’ commitment of time and resources. Your willingness to sustain the work of our Society ensures the needs of members and stakeholders will be met.

In closing, I want to reiterate a message from my 2009 letter; that is the need for prompt sharing of lessons learned from incidents and accidents with the people at highest risk – seafarers and terminal workers. I have followed through with my commitment of placing BG incident information on SIGTTO’s website, but my efforts could have been more timely. It is a challenge to add another reporting requirement to already weighty internal and external obligations. I encourage all members to step up to take advantage of this forum for improvement.

Allyn Risley

June 2011

 

GENERAL MANAGER’S REPORT

2010 was another busy and eventful year for the Society. The Society had nine members resign and six join, thus showing a net decrease of three over the year. This is the first time we have had a net decrease but consider it to be directly linked to the consequences of the banking crisis which occurred in mid 2008. At year end we had a total of 176 Full Members and Associate Members. The Directors met three times during the year as per the Bye-Laws. The spring Board meeting was hosted by in Copenhagen and the autumn meetings were in Houston, kindly hosted by the A.P.Moller and BG LNG Services respectively. The 2010 Report of Accounts is attached and I commend it to the Members. The Society is registered in Bermuda as a “not-for-profit” entity, however we are allowed to retain surplus as reserves. We set the budget each year to generate a small surplus

which goes to reserves. The reserve level we target is about one year’s operating costs and we are just over the target. The Society’s finances remain on a sound footing. The General Purposes Committee (GPC), under the chairmanship of Marc Hopkins, met twice in the year to manage the Society’s affairs. The meetings were in London in April and Denpasar in September. The Society maintains a full program of activities, most of which are addressed by working groups populated by experts selected from the member companies. The Panel meeting was held on the days following the autumn GPC meeting in Denpasar. This is the main meeting forum for the members and was well attended with more than 120 at the meeting. Regional Forum meetings have continued to be held on a regular basis, the timing of such meetings being largely dictated by the members themselves. The Society has ‘observer status’ as a Non-Governmental Organisation (NGO) at the International Maritime Organisation (IMO). The Secretariat attends IMO as appropriate and has written/co-sponsored submissions to IMO on various matters related to the LNG/LPG sector of the industry. The Secretariat maintains close contacts with other NGO’s, principally OCIMF, ICS, Intertanko and BIMCO. Where appropriate, we co-ordinate our activities to ensure a consistent industry message to the wider world. An example of this is in the area of advice to those exposed to the threat of piracy off the coast of Somalia. The industry, together with military input, has developed the “Best Management Practices to Deter Piracy off the Coast of Somalia and in the Arabian Sea Area” (“BMP”). Mid 2009, this was in its third edition and will be further updated as and when appropriate. For the Society over the last 2 years, the single largest commitment has been the co-ordination of the updating of the International Gas Carrier Code (IGC Code). This work has entailed extensive travel as it is a truly international exercise. After a final herculean effort, it was submitted to IMO on schedule. It will be formally presented to the Government delegates at BLG 15 in early 2011. The Secretariat maintains a program of external engagements to promote the Society’s profile. The General Manager also chaired the 4th Annual Lloyd’s List Gas Ship Technology Summit in London.

Capt. Andrew Murray delivered the annual lecture to the LSE port State Control Course. GIIGNL invited the General Manager to their General Assembly at Kochin in India and to advise them on SIGTTO activities and discuss matters of mutual interest. I would like to record the Society’s thanks to two of our Technical Advisers who completed their terms with the Secretariat during 2010, Teo Popa and Capt Andrew Murray. Their places in the Secretariat have been filled by Capt Cherian Oommen and Captain Craig Jackson. I would also like to record my thanks to the Directors, the GPC, the Secretariat staff and all the membership for their support and guidance, without which, the Society would not continue to be the principal voice for the liquefied gas industry. I look forward to meeting with as many of you as possible in the coming year. William S Wayne General Manager June 2011

The London Office address: 17, St. Helen’s Place London, EC3A 6DG 44 + 207 628 1124 www.sigtto.org

SIGTTO at a Glance

SIGTTO was formed in 1979 with 7 members, within one year there were 20 members. At the end of 2010 SIGTTO had 124 Full Members and 52 Associate Members and the overall tonnage and capacity in World terms is provided within these pages.

SIGTTO has been organised to encourage safe and responsible operation of liquefied gas tankers and marine terminals handling liquefied gas; to develop advice and guidance for best industry practice among its members and to promote criteria for best practice to all who have responsibilities for, or an interest in, the continuing safety of gas tankers and terminals.

SIGTTO is a not for profit organisation based in Bermuda with a London liaison office. London is the financial and shipping capital of the World and is also the headquarters of the International Maritime Organisation where SIGTTO has observer status.

The SIGTTO London Office a permanent staff of six and has a Board of Directors presently numbering 20 who meet three times a year. The Annual General Meeting of Members is normally held in the Autumn.

The Society does not seek to promote the sectional interests of any of its Members, nor will it compromise technical standards to secure commercial advantage for any one party.

Our members are involved in all aspects of the safe marine transportation and transfer to and from shore tankage of liquefied gasses.

SIGTTO publishes over 50 books, recommendations and guidelines – an average of two per year have been produced or updated. The SIGTTO website is available to all interested parties and members have free access to further pages.

SIGTTO sponsors Panel Meetings and Regional Forums where members are encouraged to suggest topics for discussion. Members, engineers, specialists and manufacturers are invited to speak at these events. Panel and Regional meetings provide an excellent opportunity for members to network with their peers.

The main technical body of SIGTTO is the General Purposes Committee. General Purposes Committee members are expected to be supportive of the aims of the Society, in promoting safe and responsible operations in the sphere of gas tanker and terminal operations and to reflect this commitment in the conduct of their own operations.

The GPC and the Secretariat provide the vehicle through which the knowledge and information gathering within the organisation can best be promulgated to the members and the regulatory bodies that influence the industry.

List of Directors – December 2010

Mr. A. Richardson IMT

Mr. E. Mortimer Co. Secretary

Mr. Z. Aizawa TEPCO

Mr. Jan van Dijk STASCo

Mr. Rudolf Adamiak GDF SUEZ

Mr. David Furnival Bernard Schulte Shipmanagement

Mr. Yasushi Yamawaki NYK

Mr. Luc Gillet Total SA

Mr. Jim Kelley Chevron Shippping

Mr. Warren Bluestein BGT

Mr. Faisal Ismail MISC

Mr. Allyn Risley BG LNG Services

Mr. Abdullah Al-Sulaiti Qatar Gas

Mr. S. Hirano Osaka Gas

Mr. T. Hashimoto MOL

Mr. Adrian Howard BP Shipping

Mr. P. Pearman Conyers Dill & Pearman

Mr. Øyvind Solem BW Gas

Mr. David Glendinning Teekay Shipping

Mr. Steffen Jacobsen AP Moller

Facts & Figures 2010 LNGCs SIGTTO Members own, operate or have a significant interest in 99% of the World total of 363 ships which has a total capacity of 51.9 million m3 26 of the 27 LNGC new-buildings delivered in 2010 are either owned partially or entirely and/or operated by SIGTTO members. LPGCs Of the World total of 1192 LPG ships, which has a total capacity of 19.3 million m3 SIGTTO members own or operate 301 ships with a capacity totalling 10.8 million m3 This equates to 55.9% of total vessel capacity, i.e. membership heavily loaded towards the larger vessels. Conventional LNG Terminals SIGTTO members have interests in, 87 out of 94 the conventional LNG terminals and all 10 unconventional (i.e. floating and offshore) terminals that are either commissioned or under construction.. LPG Terminals SIGTTO members own or operate 90 terminals with 8.7 million m3 total storage capacity. Sources: GIIGNL “The LNG Industry” Clarkson Research Services Ltd. “The Clarkson Register” SIGTTO Membership Database and other internal records