REQUEST FOR INFORMATION RE: CHARTER OF LNG VESSEL WITH REGASIFICATION CAPABILITY TO THE ISRAEL ELECTRIC CORPORATION LTD. Purpose of Procedure The Israel Electric Corporation Ltd ("IEC") is chartering a vessel capable of shipping and re-gasifying liquefied natural gas ("LNG") on its board, connecting to an existing offshore buoy and pipeline at the port of Hadera, utilizing a submerged turret loading ("STL") system. The location of the STL is 10 km offshore at a water depth of 75 meters. The purpose of this invitation is to register all parties able and willing to charter an LNG vessel with regasification capabilities, for participation in any future IEC charter process. A. General Information 1. IEC is the sole integrated electric utility in Israel and generates, transmits, distributes and supplies approximately 80% the electricity used in the State of Israel. IEC is owned by the State of Israel. 2. IEC s primary sources of fuel for electricity generation are coal and natural gas. 3. As of the end of 2012, IEC has been chartering an LNG vessel with on-board regasifying capability and has been purchasing LNG cargoes from various providers. The LNG cargo is transferred to the re-gas vessel by way of ship to ship transfer ("STS") in the waters of the Port of Limassol. The current charter ends on October 2017. 1
B. IEC s requirements Commencement of Service - October 25, 2017. Term 24 months with an option, at IEC's sole discretion, for additional 3 periods of 12 months each. Vessel Capacity minimum of 125,000 m^3. Peak Regasification Capacity - 590,000 Sm^3 /hour with pressure of up to 80 bar. LNG Delivery Point STL system at the open Port of Hadera. Please provide proof of experience in regasification from an STL. Cargo Transfer STS either at the open Port of Hadera (subject to appropriate Israeli government approvals), at Limassol Port Cyprus or at open sea waters. The re-gas vessel and the cargo carrier must be mutually approved for STS. Dual Capacity the vessel must have dual LNG cargo carrier and on-board re-gas capability. Replacement Vessel during Scheduled Maintenance proven ability to make available a replacement vessel during periods of scheduled maintenance requiring the re-gas vessel to be absent from the STL for more than two weeks. Replacement of Vessel due to Unscheduled Maintenance proven ability to provide replacement vessel for unscheduled maintenance events requiring the absence of the re-gas vessel from the STL for more than three weeks. Existing or Newly Build Vessel if existing, please provide operating history of the re-gas vessel, including any STS performed; if new, please provide details of the shipyard and the expected completion date. Port of Hadera Sea Conditions enclosed are general Hadera sea conditions (Hadera Gas Import Terminal Metocean Conditions. The report was written by DHI) ; please provide IEC with the description of sea conditions which limit the 2
use of the proposed LNG vessel and proof of your experience of re-gas in high sea conditions of up to 8 meters significant waves. Additional Experience in addition to the above requests, please provide: Proof of your provision of at least 3 LNG re-gasification vessels with the described above capacity in the past 10 years. Participants should state the particulars of each vessel delivered: capacity, peak capacity, technology used, beginning of vessel operations, term, name and details of client contact person. A list of your LNG fleet vessels which are compatible for STS operation withyour proposed vessel and/or can replace the proposed vessel due to maintenance. Vessel Details please provide the following information for the proposed vessel(s): builder, construction date, ship manager, flag, containment system, length, beam, laden draft, scantling draft, ballast draft, air draft in ballast, deadweight tons at scantling draft, gross tons, speed, boil-off rate/day, cargo capacity, cool down volume, cool down time, regasification ramp rates- including start from idle state. Commercial Terms IEC contemplates that this RFI shall be subject to the Israeli law and the Israeli jurisdiction. Corporate Information please provide the following corporate information: a. Company's history with special emphasis upon corporate reorganization in the last ten years, licensee and licensor agreements. b. Annual audited reports(or the equivalent thereof if not available) for the past three years, products catalogues, company description and any other information relevant to your company, its financial, commercial or professional status/situation. c. Company s place within the corporate structure (if applicable), with indications regarding affiliates. parent companies, subsidiaries and/or 3
d. Affidavit by legal counsel or accountant that the company is in good standing with no current actions or claims regarding bankruptcy, insolvency, liquidation, voluntary or otherwise placing under administration, receivership, trusteeship or judicial management. e. Local Israeli agent name (if applicable), address, phone, fax, E-mail, availability of technical support in Israel. C. Instructions to the Participants A participant who wishes to be considered for further evaluation towards inclusion in the contemplated purchasing process shall provide all the details and information requested in this RFI and other prequalification document which may be sent to you. The sole propose of this RFI and prequalification process is to provide IEC with certain information. Neither participation in this RFI and prequalification process nor the provision of any information to IEC hereunder or otherwise shall grant participant any right, legal or otherwise, regarding participation in any current and/or future purchasing process conducted by IEC. Based on participant s responses to this questionnaire, the information stated therein, the opinions received from references listed herein and all other relevant information gathered by IEC, IEC will determine whether to include participant in its list of approved suppliers for this type of project. IEC shall keep all information provided in this RFI confidential and shall use it only for its own purpose, in connection with this RFI and prequalification process and/or any other purchasing process undertaken by IEC. IEC shall be under no obligation to enter any transaction with any party whomsoever who responds to or participates in any procedure for the RFI to be used for the purposes of acquisition of 4
services/equipment/systems/goods or data which is the subject of the RFI or for purposes of their development, application, production or construction. IEC shall be entitled to use the information obtained by way of the RFI, as well as any data, solution, process, technique or suggestion contained in any of the responses or documents/response material submitted to IEC related thereto, for its own needs. Without derogating from the above, IEC shall keep any information/data received from any person responding to the RFI in strict confidence and shall not permit the use or use same for any purpose than for its own needs unless such information must be disclosed subject to a right granted by law. A response to an RFI shall not bestow upon any person responding thereto any advantage in any procurement procedure, if such procedure should be publicized at all, and IEC shall not be obliged to include the respondent in the procurement process. Any exceptions, changes or additions to these above instructions (whether contained in any response to the RFI or otherwise) shall be devoid of validity and legal effect and shall not obligate IEC. D. Submission Dead Line You are requested to submit your response to this RFI by July 29th, 2015 to the following address: Yaron Ronai The Israel Electric Corporation Ltd. P.O.BOX 10 Haifa, 31000, Israel Attention: Mr. Yaron Ronai Email: yaron.ronai@iec.co.il Submissions may be provided either by hand delivery, regular mail, or email. 5