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.