Philly Shipyard Holds Ceremonial Keel Laying for First Product Tanker for Kinder Morgan

PHILADELPHIA

Philly Shipyard, Inc. (PSINC), the wholly-owned U.S. subsidiary of Philly Shipyard ASA (Oslo: PHLY), held a ceremonial Keel Laying for the first product tanker in a four vessel order for American Petroleum Tankers (APT), a Kinder Morgan, Inc. subsidiary. When completed at the end of this year, the vessel will be 600 feet long and capable of carrying 50,000 tons of crude oil or refined petroleum products.

Keeping with long held shipbuilding tradition, coins were placed on one of the keel blocks before the 650 ton unit was lowered into place in the dry dock. Representatives and guests from Philly Shipyard, Kinder Morgan and the United States Coast Guard were in attendance to place the coins as a sign of good fortune and safe travels. Philly Shipyard representatives included the most recent recipients of the company’s “Safety Team of the Quarter” award, who were recognized for exemplifying safe operation during the fourth quarter of 2015.

Steinar Nerbovik, Philly Shipyard’s President and CEO, remarked, “Today marks our 25^th Keel Laying celebration and I couldn’t be more proud of the 1,200 men and women of Philly Shipyard for their unyielding pride and passion that continues to bring all of our vessels to life.”

“This is an exciting day for Kinder Morgan. We look forward to taking delivery of this state-of-the-art vessel at the end of 2016,” said Robert Kurz, vice president of Kinder Morgan Terminals and president of APT.

The Tier II 50,000 dead weight ton (dwt) product tankers are based on a proven Hyundai Mipo Dockyards (HMD) design which incorporates numerous fuel efficiency features, flexible cargo capability and the latest regulatory requirements. The vessels will be constructed with consideration for the use of LNG for propulsion in the future.

Philly Shipyard has delivered 22 ships in its 17 year history. The four product tankers for APT are currently under construction and have planned deliveries in 2016 and 2017. Also under construction at the shipyard are two 50,000 dwt product tankers for Crowley Maritime Corporation with planned deliveries during 2016 and two 3,600 TEU containerships for Matson Navigation Company, Inc. with planned deliveries in 2018. For more information on the shipyard and its projects, please visit www.phillyshipyard.com.

Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure company in North America. It owns an interest in or operates approximately 84,000 miles of pipelines and approximately 165 terminals. The company’s pipelines transport natural gas, gasoline, crude oil, CO₂ and other products, and its terminals store petroleum products and chemicals, and handle bulk materials like coal and petroleum coke. For more information please visit www.kindermorgan.com.

Philly Shipyard is a leading U.S. commercial shipyard constructing vessels for operation in the Jones Act market. It possesses a state-of-the-art shipbuilding facility and has earned a reputation as the preferred provider of oceangoing merchant vessels with a track record of delivering quality ships. Philly Shipyard is listed on the Oslo Stock Exchange and is majority-owned by Aker Capital II AS, which in turn is majority-owned by Aker ASA. Aker is a Norwegian industrial investment company that creates value through active ownership. Aker’s investment portfolio is concentrated on key Norwegian industries that are international in scope: oil and gas, fisheries and biotechnology, and marine assets. Aker’s industrial holdings comprise ownership interests in Aker Solutions, Kvaerner, Det norske oljeselskap, Aker BioMarine, Ocean Yield, Havfisk and Akastor.

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Philly Shipyard, Inc.
Kelly Whitaker, +1 215-875-2640
kelly.whitaker@phillyshipyard.com