INTEGRATING NATURAL GAS INFRASTRUCTURE TO MARKET PT Perusahaan Gas Negara (Persero) Tbk May 2014 GEO ENERGY CONFERENCE AND EXIBITION : 4th LNG Supply, Transport & Storage
INTRODUCTION PGN IS A STATE OWNED COMPANY WITH SPECIFIC MISSION TO PROMOTE THE DOMESTIC NATURAL GAS UTILIZATION THROUGH NATIONAL GAS MANAGEMENT Exploration and Production Distribution and Retail PGN is a natural gas provider company through infrastructure development such as transmission and distribution pipeline or other gas transportation mode. PGN is a national gas company who owned the biggest infrastructure in Indonesia PGN is developing to a company with complete portfolio of gas management competencies
INTRODUCTION PGN OWNED THE BIGGEST DOWNSTREAM NATURAL GAS INFRASTRUCTURE IN INDONESIA (Kilometer) Duri Panaran Station, Batam 3.686 3.785 3.836 3.865 3.987 KALIMANTAN 2.047 2.047 2.047 2.047 2.047 Grissik Receiving Station 2009 2010 2011 2012 2013 Transmisi Distribusi Floating Storage Regasification Unit Pagardewa Station Terbanggi Besar St. Labuhan Maringgai St. Bojonegara Station Muara Bekasi Station
WORLD ENERGY REFORM OIL PRICE VOLATILITY STIMULATE THE INCREMENT OF NATURAL GAS UTILIZATION DEMAND IN THE WORLD Source: EIA 2012 World natural gas consumption increase more than 100% since 1980 to 2010. The most increased natural gas consumption is in the Asia region, inline with the their economic growth.
INDONESIA DOMESTIC UTILIZATION ANALYSIS OF NATURAL GAS DOMESTIC GAS UTILIZATION IS INCREASING WHILE THE LNG EXPORT IS DECREASING Natural gas production has increased by almost 25% between 2002 and 2012. While Indonesia is still exporting about half of its natural gas production, domestic consumption is increasing in tandem with production
INDONESIA NATURAL GAS RESERVES NATURAL GAS RESEREVE IS SCATTER THROUGHOUT INDONESIA ARCHIPELAGO 5.74 1.28 51.46 8.56 18.33 17.09 4.23 15.22 24.32 3.70 6.40 Source: Indonesia Energy Statistic 2010 by MEMR Indonesia PROVEN = 108.40 POTENTIAL = 48.74 TOTAL = 157.14 Indonesia has 108 TCF of proven gas reserves or equivalent to 12 billion barrels of oil, almost 3 times of current Indonesia s proven oil reserves. It makes Indonesia as 11th largest nation with gas reserves in the world
MAPPING INDONESIA s NATURAL GAS MARKET Development of natural gas market shall be analyzed inline with Indonesia economic development program. The Master Plan for Acceleration and Expansion of Indonesia Economic Development (MP3EI) 2011 2025 arrange all Indonesia s archipelago with the specific focus in economic corridors From the specific characteristics of each economic corridor, the center natural gas demand can be determined
MAPPING INDONESIA s NATURAL GAS MARKET MP3EI DEFINED THE CORRIDOR 2 - JAVA AS THE CENTER OF ENERGY DEMAND Corridor 1 - Sumatera Center for Production and Processing of Natural Resources (National Energy Reserves) I II III IV Corridor 3 - Kalimantan Center for Production and Processing of Natural Resources (National Energy Reserves) VIII Corridor 4 - Sulawesi Center for Production and Processing of National plantation, Agriculture, Fishery, Oil and Gas & Mining IX X Corridor 6 Papua - Maluku Development Center of Food, Fishery, Energy, and Mining XI XII Notes: Corridor 2 (Region V, VI, VII) is defined as center of National energy demand Energy Demand distributed at corridors 1, 3, 4, 5, 6 is less than demand at corridor 2, and can be categorized as City demand City demand consist of transportation, commercial and household V VI VII Corridor 2 - Jawa Driver for National Industry and Service Provision Center of Demand Corridor 5 Bali NT Tourism Gate and National Food Supporting
INDONESIA s SPECIFIC CHALLENGES TO PROMOTE GAS UTILIZATION Thailand Malaysia Demand Locus Malaysia Supply Locus East Indonesia West Indonesia Timor-Leste Papua New Guinea The natural gas reserves are mostly located in eastern part of Indonesia, and center of demand is located at western part of Indonesia The natural gas demand at eastern part of Indonesia are still developing with characteristic of small volume and scattered throughout the islands. Certain areas in western part of Indonesia are also has same type of demand. The aim is to deliver the gas from its sources to the market with right technology considering the Indonesia archipelago natural challenges
NATIONAL GAS INFRASTRUCTURE DEVELOPMENT NATURAL GAS INFRASTRUCTURE DEVELOPMENT REQUIRE SYNCHRONIZATION OF SUPPLY DEMAND INFRASTRUCTURE PLANNING DEMAND ROADMAP SUPPLY PROFILE + INFRASTRUCTURE PLAN : CONECTING SUPPLY AND DEMAND WITH THE RIGHT TECHNOLOGY PIPELINE LNG CNG MINI LNG
PIPELINE DEVELOPMENT AT WESTERN INDONESIA INTEGRATED PIPELINE TO CONNECT SUMATERA AND JAVA MARKET Infrastructure networking development to the customer at North Sumatera Panaran Tanjung Uncang Pipeline Development Distribution networking development at east java Lampung Distribution Networking System Development Distribution backbone development Improving capacity development Improving reability networking system to customer at west java
UTILIZATION OF SUPPLY SOURCE AT EASTERN INDONESIA DELIVERING THE NATURAL GAS FROM EASTERN INDONESIA THROUGH LNG TECHNOLOGY 3 2 1 1 West Java FSRU Capacity 3 MTPA 2 Lampung FSRU Capacity 3 MTPA 3 Arun Regasification Capacity 1.5 MTPA Deficit Surplus Source : Dirjen MIGAS 2012
UTILIZATION OF SUPPLY SOURCE AT EASTERN INDONESIA DEVELOPMENT OF LNG RECEIVING TERMINAL AT WESTERN INDONESIA LNG FSRU LAMPUNG PROJECT 170.000 m3 Storage Capacity
DELIVERING TO SPECIFIC CONDITION DELIVERING SMALL VOLUME TO REMOTE AREAS USING MINI LNG OR CNG TECHNOLOGY Eastern Indonesia LNG MINI LNG PLANT LNG DISTRIBUTION STORAGE & REGAS END CUSTOMERS MINI LNG INFRASTRUCTURE Small islands at Sumatera & Java CNG PLANT CNG DISTRIBUTION CNG INFRASRUCTURE REGULATING STATION END CUSTOMERS
PGN NATURAL GAS INFRASTRUCTURE DEVELOPMENT PLAN FOR INDONESIA: INTEGRATING NATURAL GAS INFRASTRUCTURE TO MARKET Western Indonesia Integrated Pipeline and LNG Receiving Terminal Natuna Timur Eastern Indonesia Optimization of LNG Network 9 6 15 14 Mahakam 8 12 Tangguh Plant FSRU Land Based Network distribution Existing pipeline Planned pipeline Planned pipeline LNG Carrier Route 2 5 1 13 3 4 11 10 7 15 8 15 Masela Infrastructure Poetntial Supply Infrastructure Potential Supply 1 FSRU Lampung Tangguh 8 Inter Island Mini LNG (Pomalaa Halmahera) Tangguh, Masela 2 Distribusi Lampung Tangguh 9 Pipa Transmisi Dumai Medan Grissik, Tangguh 3 Distribusi Semarang Gundih, Kepodang 10 Market Extension Jawa Bagian Timur BD, WMO, Cepu 4 5 6 7 Pipa Kalija Fase I Kepodang Tambak Lorok Market Extension Jawa Bagian Barat Pipa Distribusi Duri Dumai Inland Mini LNG Jawa Timur (Malang) Kepodang Grissik, Tangguh Grissik, Tangguh BD, WMO 11 12 13 Market Expansion Jawa Bagian Tengah dan Timur (Semarang, Jogjakarta, Solo) Pipa Kalija Fase II Bontang Semarang Land Based LNG Receiving Terminal Jawa Barat Gundih, Kepodang, Cepu Mahakam Mahakam, Tangguh, Masela 14 Pipa Transmisi Natuna Jawa Natuna Timur 15 Mini LNG Hub Batam Jatim NTT Mahakam, Tangguh, Masela
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