EXMAR report 2023

MGCs, on the other hand, have always been designed to carry ammonia and are expected to remain the workhorses of this segment. The order book-to-fleet ratio is currently around 24%, driven by the prospects of increased ammonia transportation and new ship owners entering this space. 0 10 20 30 40 50 2022 2023 Source: Grieg 5 Jan 2024 NEWBUILD CONTRACTS VLEC LGC MGC Handy 8K-15K cbm 3K-7.99K cbm VLGC VLAC As a world first, EXMAR has ordered two newbuild midsize ammonia carriers, each with a capacity of 46,000 cbm, that can use ammonia as fuel. Using ammonia to fuel the main engine cuts carbon emissions by close to 90%. On the LPG side, in 2023, seaborne LPG volumes totaled 130.2 million metric tons, compared to 124.6 million MT in 2022. The US remained the largest LPG exporter, with approximately 57 million MT exported by sea last year. This increased output was driven by strong production levels combined with a decline in domestic demand and profitable arbitrage opportunities in Europe and China in particular. While the US domestic LPG market is expected to see demand improve again in 2024, any domestic production surplus would have to be exported. The projection for US exports of LPG for 2024 is yet another increase to 59 million tons, according to market indicators, albeit with a lower growth rate than in 2023. 0 20 40 60 80 100 120 2018 2019 2020 2021 2022 2023p 2024p Source: Poten LPGWM Jan 2024 US LPG PRODUCTION AND SEABORN EXPORTS Propane Butanes Seaborne LPG Exports China remained the largest importer at 32 million MT of LPG, up 23% on the previous year despite weak downstream demand. New Propane Dehydrogenation (PDH) plants in China contributed to this growth. However, due to the overall lower demand, some units operated at lower utilization, while others extended turnarounds or resold their cargoes. China is expected to see another year of significant LPG imports in 2024, as a small number of additional PDH plants have come on stream, provided the utilization rates of the existing plants can be ramped up to normal levels. India remains the second-largest LPG importer in the world, at 17.9 million tons in 2023, and is expected to continue growing over the next few years. “Two sailing boats” KMSKA Photographer: Dominique Provost 26 ACTIVITY REPORT