Transaction Lifecycle

Closed-loop cargo model.

Each AIC LNG transaction follows a structured eight-step lifecycle — from demand aggregation through settlement and residual cash distribution. The model is designed to be self-liquidating: customer receipts repay senior financing within the cargo delivery cycle.

8Transaction Steps
~25Day Cargo Cycle
100%Self-Liquidating
Origination
Procurement
Contracting
Finance
Logistics
Transit
Delivery
Settlement
01
Origination

Demand Aggregation

Asia EntitiesUtilitiesRegas TerminalsIndustrial Users

AIC Asia companies and regional partners identify demand from utilities, regas terminals, industrial users, power generators, city gas distributors, and other buyers across Japan, South Korea, Taiwan, China, India, and Southeast Asia. Aggregated demand signals inform cargo sizing, delivery windows, and pricing parameters.

02
Procurement

Global Tender / RFEOI

Singapore Trading Co.U.S. SuppliersTrade Finance BanksShipping Providers

AIC LNG Trading Ltd. issues a structured tender or Request for Expression of Interest to LNG suppliers, trade finance banks, shipping providers, and offtakers. The tender specifies cargo size, loading window, delivery terms, pricing basis, and credit requirements.

03
Contracting

HOA / SPA Execution

HOAMaster SPACargo ConfirmationU.S. Gulf Coast

AIC negotiates a heads of agreement, master sale and purchase agreement, or cargo confirmation with a U.S. LNG supplier. The agreement specifies cargo volume, pricing formula, loading terminal, laycan, delivery basis, and payment terms. Execution is subject to trade finance close.

04
Finance

Trade Finance Close

Letters of CreditBorrowing BaseReceivables SupportWorking Capital

AIC arranges letters of credit, cargo finance, borrowing base facilities, receivables support, and working-capital facilities through trade finance banks. The Hong Kong trading entity is the principal borrower. Finance structures are self-liquidating: cargo sale proceeds repay the facility within the delivery cycle.

05
Logistics

Vessel Nomination and Loading

Shipping SPVVessel VettingLaycan ConfirmationBills of Lading

The shipping SPV or chartering partner nominates an LNG carrier, completes vessel vetting, confirms laycan, and coordinates with the U.S. Gulf Coast export terminal for loading. Cargo insurance, bills of lading, and shipping documents are arranged. The vessel departs under voyage management.

06
Transit

Ocean Transit

Vessel MonitoringMarine InsuranceSanctions ScreeningVoyage Management

The cargo moves across the Pacific under continuous vessel monitoring, marine insurance, sanctions screening, and voyage management. AIC coordinates with the shipping SPV, insurance brokers, and compliance teams throughout the transit period. Estimated transit time: 18 to 25 days.

07
Delivery

Discharge, Regas, and Delivery

Regas TerminalsDischarge SchedulingTitle TransferAsia Delivery

The cargo is delivered into Asia regas terminals or downstream customer arrangements. AIC coordinates discharge scheduling, regas slot confirmation, and downstream delivery logistics with the Asia entity network and terminal operators. Title transfers at the agreed delivery point.

08
Settlement

Settlement and Distribution

Trade Finance RepaymentOperating CostsResidual MarginUpstream Distribution

Customer receipts repay senior trade finance facilities, operating costs, freight, insurance, regas fees, and applicable taxes. Residual cash — the trading margin net of all costs — is retained at the Hong Kong trading entity or distributed upstream to the ADGM holding company and ultimately to investors.

Regulatory Authorization

DOE Export Authorization.

AIC Energy Corp has filed an application with the U.S. Department of Energy for authority to export liquefied natural gas to Canada and Mexico. The application is currently pending before the DOE Office of Fossil Energy and Carbon Management.

Docket Number26-82-LNGDOE/FE Docket
Application Number103733DOE Reference
ApplicantAIC Energy CorpLegal Applicant of Record
Application Scope

The application requests authority to export liquefied natural gas to Canada and Mexico in a volume up to 61.07 billion cubic feet over a period of two years, pursuant to Section 3 of the Natural Gas Act.

61.07 Bcf Authorized VolumeCanada & Mexico2-Year TermSection 3 NGA
Current Status
Pending

The application is pending before the DOE Office of Fossil Energy and Carbon Management. Upon approval, the authorization will enable AIC to execute LNG export transactions to Canadian and Mexican counterparties under the terms of the Natural Gas Act.

Capital Structure

Flow of Funds.

The diagram below illustrates the five principal flows in each AIC cargo transaction: equity capital from investors through the ADGM holding company; debt and letter-of-credit facilities from trade finance banks; physical LNG from U.S. suppliers to Asia customers; customer receipts flowing back to the Hong Kong trading entity; and residual cash distributed upstream after all senior obligations are satisfied.

Equity Flow
Debt / Financing
Physical LNG
Customer Receipts
Operating Payments
Residual / Dividends
Equity CapitalEquity / IntercoDebt / LC FacilityCargo PaymentPhysical LNG FlowFreight PaymentCustomer ReceiptsDebt RepaymentSenior RepaymentResidual / DividendInvestor DistributionInvestorsEquity CapitalAIC Energy CorpADGM HoldCoAIC LNG Trading Ltd.Hong Kong — Principal BookTrade Finance BanksLetters of Credit / DebtAIC LNG Shipping SPVVessel CharteringU.S. LNG SuppliersGulf Coast ExportAsia CustomersUtilities / NOCs / IndustrySenior LendersRepayment Priority
1st PrioritySenior Lenders

Trade finance repayment, LC fees, and interest

2nd PriorityOperating Costs

Freight, insurance, regas, taxes, and platform costs

3rd PriorityADGM HoldCo

Intercompany repayment and holding-level obligations

4th PriorityInvestors

Residual cash and equity distributions after all senior obligations

Architecture Principles

Designed to close.

Self-Liquidating

Customer receipts repay senior financing within the cargo delivery cycle. No permanent capital is consumed by individual transactions.

Ring-Fenced

Shipping, trading, and holding entities are legally separated. Freight risk, trading risk, and equity risk are isolated by entity.

Waterfall-Structured

Settlement follows a defined priority waterfall: senior lenders, operating costs, intercompany, then equity distributions.

Scalable

The lifecycle repeats for each cargo. As trade finance capacity and counterparty depth grow, cargo volume scales without structural change.

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