cng industry players in indonesia - raja rafa...

CNG Industry Players in Indonesia “Are they ready for the shift to public transportation sector?”

Presentation on GLG webcast

Presented by Robbi R. Sukardi, MBA

Managing Director PT. Raja Rafa SamudraJakarta, 28 August 2012

MAJOR CNG INDUSTRY PLAYER & MARKET POTENTIAL IN INDONESIA

GO GREEN

1986 - 1992 1993 - 1998 1999 - 2004 2005 - 2008 2009 - Today

Indonesia’s Government Launched the First NGV Program called the “Blue Sky Program “

Lack of incentives for the NGV users and the High Cost of operating the CNG stations resulted to a diminishing number of NGV and CNG Stations.

Although during this period Indonesia’s Oil Consumption exceeded the Country’s Oil production making Indonesia as a Net Oil Importer, the NGV and CNG Stations development did not made it to expand further as NGV and CNG Station owners difficult to convert and buy spare parts due the Indonesian crisis had caused the devalued of the Rupiah causing

The start of developing era of the private sector entering the NGV and Industrial CNG business

Increase government attention toward the development of Indonesia’s NGV market making the rising era of the NGV industry in Indonesia.

GO GREEN

had caused the devalued of the Rupiah causing

ü Driven by Indonesia State Owned Oil Company PT. Pertamina in the development of the CNG Stations.

ü NGV’s were mainly taxi’s.

ü Price of CNG was low, but so was the Petrol Price.

ü Development of CNG Stations owned by PT. Pertamina were in the numbers of below 30 CNG Station across Indonesia.

ü Taxi’s fleets remained the NGV users.

ü Price of CNG was low, while Petrol remain low too as the Government subsidized Petrol Fuel.

ü New CNG Stations from private sector was established in East Java but mainly by owners of the Taxi’s fleet.

ü Most of the other existing CNG Stations was shutting down as the cost to maintain the equipment had exceeded the revenue and not enough sale.

ü DKI Jakarta’s initiated the Corridor new busses using a dedicated natural gas engine.

ü Private owners started to enter the CNG business both for NGV and Industrial usage.

ü A wide gap between Gas price & Petrol price.

ü Petrol Fuel remained being subsidized.

ü APCNGI was established.

ü New policies on the NGV use were develop directly by the Indonesia’s President, which Pertamina will drive new stations development.

ü Price gap between CNG and petrol remained high, but subsidized petrol price and CNG were remained small.

characteristic

GO GREEN

AREA OF CNG OPERATIONS

THE EXISTING PRIVATE ENTERPRISE CNG STATION OWNERS *

1. PT. Aksara Andalan Prima2. PT. Banten Gas Synergy 3. PT. Berkah Mirza Insani4. PT. Cipta Niaga Gas5. PT. Citra Nusantara Energy6. PT. Citra Nusantara Gemilang7. PT. Citra Nusantara Hilir Raya8. PT. Daya Trans Avindo9. PT. Davalti Mugi Utama Gasindo10. PT. Duta Nugraha Pratama11. PT. Global Granary Energy

COMPANY ENTITY AREA OF OPERATION

• DKI Jakarta• Sidoarjo, East Java• Cikarang, West Java• Cikampek, West Java• Surabaya, East Java• Bekasi, West Java• Palembang, South Sumatra• Sidoarjo, East Java• DKI Jakarta• Gempol, East Java• Sidoarjo, East Java11. PT. Global Granary Energy

12. PT. Green Energy Natural Gas13. PT. Indogas Kriya Dwiguna14. PT. IEV15. PT. Java Energy Semesta16. PT. Petross Gas17. PT. Setindo Raya18. PT. Suropati Cahaya Timur19. PT. T Energy20. PT. Titis Sampurna21. PT. Pess22. PT. Zebra Energy

• Sidoarjo, East Java• Gresik, East Java• Sidoarjo, East Java• Bekasi, West Java• Gresik, East Java• DKI Jakarta• Pasuruan, East Java• Pasuruan, East Java• DKI Jakarta• Cepu, West Java• Gresik, East Java• Surabaya, East Java

* Based upon data from APCNGI - 2011

INDUSTRIAL CNG MARKET PLAYERS *

PT. BERKAH MIRZA INSANI• 3,0 mmscfd capacity Mother Station• Supplied by PT. Perusahaan Gas Negara• Gas contract amounted to 2,5 mmsfd and

all already sold to industrial customers.

PT. CITRA NUSANTARA GEMILANG• 3,5 mmscfd capacity Mother Station• Supplied by PT. Pertamina• Gas contract amounted to 3,5 mmsfd and all

already sold to industrial customers.

PT. PETROSS GAS• 1 mmscfd capacity Mother Station• Supplied by PT. Perusahaan Gas Negara • Gas contract amounted to 0,7 mmsfd and sold

to the Bus Transjakarta market (possibly shifting to industrial)

PT. T ENERGY• 1,0 mmscfd capacity Mother Station

PT. CIPTA NIAGA GAS• 4,0 mmscfd capacity Mother Station• Supplied by PT. Perusahaan Gas Negara• Gas contract amounted to 2,5 mmsfd and

all already sold to industrial customers.

• 1,0 mmscfd capacity Mother Station• Supplied by PT. Perusahaan Gas Negara • Gas contract amounted to 1 mmsfd and 0,4 sold

to the Bus Transjakarta market & 0,6 mmscfdto industrial

PT. IEV• 3,5 mmscfd capacity Mother Station• Supplied by PT. Odira Gas• Gas contract amounted to 3,5 mmsfd and all

already sold to industrial customers.

* Based upon data from APCNGI - 2012

Station Rawa Buaya

Station Davalti Station Pemuda

Station Perintis

Station PluitStation Kalideres

CNG STATION IN DKI JAKARTA AREA *

Station Grogol

Station MargondaStation Cimanggis

Station Rambutan

Station T EnergyStation Pancoran

Pertamina

Private Owners

Keterangan

Station Hek

* Based upon data from APCNGI- 2012

GO GREEN

• 13 Private CNG Mother Station • 3 Private Conversion Workshop

CNG Private Players * :

• 22 Established CNG Mother Stations• 5 Plan Development CNG Mother Stations• + 300 units CNG Skids module• + 60 MMSCFD CNG Production Supply• 4 CNG Converter Kits Installation Company• 2 CNG Consultant Company

GO GREEN

• 1 Private CNG Mother Station• 1 Private Conversion Workshop• 1 Government CNG Mother Station• 2 Government CNG Daughter Stations *

• 3 Private Conversion Workshop • 7 Private Transporters • 3 Government CNG Mother Station *

• 9 Private CNG Mother Station • 3 Private Conversion Workshop.• 5 Private CNG Transporters.• + 7-9 Pertamina CNG Station• 3 New Pertamina Mother Station *• 4-6 Pertamina Daughter Stations ** In development

* Based upon 2011 data from APCNGI

GO GREEN

NEW AREA OF OPERATIONS

DOMESTIC CHALLENGES FOR CNG INFRASTRUCTURE IN INDONESIA

GO GREEN

TWO MAIN FACTORS FOR THE SUCCESFULNESS OF THE CNG CONVERSION IN INDONESIA

1. PRICE DEVIATION BETWEEN CNG SALE PRICE AGAINST PETROL SALE PRICE

ü During the development stage, ideally there should be gap difference between CNG Fuel price and Petrol Fuel price;

ü If today’s Petrol Fuel (Non Subsidy) is selling at $0.95/PLE, then assuming a 70% difference from CNG sale price then would be around $ 0.28/PLE $ 0.32/PLE;

2. WIDE SPREAD AVALILABILITY OF CNG FILLING STATIONS

ü Because the amount of gas that can be stored in the cylinders tank is around ¼ of the amount of petrol that can be stored using a type I cylinders, natural gas the amount of petrol that can be stored using a type I cylinders, natural gas vehicles (NGV) need to fill at least twice as much as petrol running vehicles.

CNG Storage Capacity Petrol Strorage Capacity

Small Vehicles 11 ple Small Vehicles 45 liter

- equivalent to 10 m3

- equivalent to 40 wlc

Medium Size Vehicles 17 ple Medium Size Vehices 60liter


- equivalent to 60 wlc

Large Vehicles 275 ple Large Vehicles 500liter


- equivalent to 1,000 wlc

GO GREEN

* Based upon Indonesia’s General Standard

Natural Gas Supplier

Natural Gas Pipeline

CNG On-line Station

CNG Trucking Fleets

Daughter Stations

US$/mmbtu US$/mmbtu US$/mmbtu US$/mmbtu US$/mmbtu

Rp./PLE

+ + + +

ü Private companies is waiting on policy by the Indonesia’s government so that are able to participate in the CNG conversion program to speed up the expandability of the stations.

CNG Sale Price < 60% Petrol Sale Price

the stations.

ü However, private sector will be confronted with the feasibility challenges to operate the CNG Stations if the sale price of CNG are to be regulated and being maintained at 60%-70% below petrol fuel, but on the other hand, the cost of pipeline gas are non regulated and selling at a high price providing limited margin for the CNG Station’s private companies.

GO GREEN

CNG STATIONS CLASSIFICATIONS *Based on Compression & Filling Capacity

GO GREEN

* Based upon APCNGI standards

5 YEAR SMALL SIZE CNG STATION FEASIBLITY PRICING STRUCTURE

Minimum Volume Sale per Day 9,000 Minimum Volume Sale per Month 270,000

Minimum CNG Station Margin $ 0.20 / m3Cost of Pipeline Gas * $ 0.25 / m3Cost of CNG at Station $ 0.45 / m3

VAT 10% $ 0.04 / m3Net Price of CNG at CNG Station $ 0.49 / m3

EQUIVALENT TO MMBTU

Maximum Volume Sale per Day 18,000 Maximum Volume Sale per Month 540,000

Minimum CNG Station Margin $ 0.10 / m3Cost of Pipeline Gas * $ 0.25 / m3Cost of CNG at Station $ 0.35 / m3

VAT $ 0.03 / m3Net Price of CNG at CNG Station $ 0.38 / m3

EQUIVALENT TO MMBTU

Minimum CNG Station Margin ** $ 5.24 / mmbtuCost of Pipeline Gas * $ 6.70 / mmbtuCost of CNG at Station $ 11.94 / mmbtu

VAT 10% $ 1.19 / mmbtuNet Price of CNG at CNG Station $ 13.14 / mmbtu

EQUIVALENT TO MMBTU

Minimum CNG Station Margin ** $ 2.62 / mmbtuCost of Pipeline Gas * $ 6.70 / mmbtuCost of CNG at Station $ 9.32 / mmbtu

VAT 10% $ 0.93 / mmbtu Net Price of CNG at CNG Station $ 10.25 / mmbtu

GO GREEN

* Based on PT. Perusahaan Gas Negara 2011 Gas price in West Java Region** Based upon RRS evaluation assumption on general CNG Station Development

$0.20

$0.30

$0.40

$0.50

$0.60

Targeted CNG Sale Price

US$0.3/m3

: Cost Structure of Small Size CNG Station

Loss Margin

current average pipeline average cost

$-

$0.10

Volume m3/month 270,000 300,000 330,000 360,000 390,000 420,000 450,000 480,000 510,000 540,000

Economical CNG Station Margin ** $ 0.20 $ 0.18 $ 0.16 $ 0.15 $ 0.14 $ 0.13 $ 0.12 $ 0.11 $ 0.10 $ 0.10 Assumption Pipeline Gas * $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 Sale Price before VAT at Station $ 0.45 $ 0.43 $ 0.41 $ 0.40 $ 0.39 $ 0.38 $ 0.37 $ 0.36 $ 0.35 $ 0.35 VAT 10% $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.03 Sale Price of CNG at Station $ 0.49 $ 0.47 $ 0.45 $ 0.44 $ 0.42 $ 0.41 $ 0.40 $ 0.40 $ 0.39 $ 0.38

GO GREEN


CilegonPublic Transport: 261 unit

Kota Bogor

JAVA NGV MARKET POTENTIALS *

SerangPublic Transport1002 unit

Kota BekasiLarge Busses: 264 unitMedium Busses: 211 unitPublic Transport: 1732 unitTaxi: 3100 unit

Kab. TangerangLarge Busses: 162 unitSmall Busses: 2465 unitPublic Transport: 3671 unitTaxi: 3399 unit

Kota TangerangLarge Busses: 89 UnitSmall Busses: 300 unitPublic Transport: 2461 unitTaxi: 3698 unit

Kab. BekasiLarge Busses: 46 unitPublic Transport: 1589 unitTaxi: 1287unit

Kab. KarawangTaxi: 1890 unit

DKI JakartaLarge Busses: 2809 unitMedium Busses: 7821 unitSmall Busses: 26002 unitPublic Transport: 2576 unitTaxi: 19827 unit

Kota CirebonLarge Busses: 363 unitMedium Busses: 136 unitSmall Busses: 146 unitPublic Transport: 979 unitTaxi: 60 unit

Kab. CirebonPublic Transport: 1440unit

Kab. GresikPublic Transport: 288 unitTaxi: 40 unit

Kota SurabayaLarge Busses: 463 unitPublic Transport: 6247 unitTaxi: 3996 unitKota Bogor

Large Busses: 239 unitMedium Busses: 73 unitSmall Busses: 4529 unitPublic Transport: 3459 unit

Kab. BogorLarge Busses: 79 unitMedium Busses: 68 unitSmall Busses: 657 unitPublic Transport: 1351 unit

CimahiSmall Busses: 402 unitPublic Transport: 1289 unit

Kota DepokLarge Busses: 157 unitMedium Busses: 46 unitSmall Busses: 568 unitPublic Transport: 2880 unitTaxi: 4072 unit

Kota BandungLarge Busses: 192 unitMedium Busses: 12 unitSmall Bus: 12 unitPublic Transport: 5521 unitTaxi: 1201 unit

Taxi: 3996 unit

Kab. SidoarjoLarge Busses: 307 unitMedium Busses: 144 unitSmall Busses: 1535 unitPublic Transport: 1426 unitTaxi: 130 unit

Kab. MojokertoPublic Transport: 412 unit

GO GREEN

* Data from Indonesia Department of Transportation 2010 data public transportation vehicle year book.

COST STRUCTURE & ECONOMIC ANALYSIS FOR CNG STATION

GO GREEN

CONSIDERATION INVESTMENT FACTORS OF A CNG STATION

CHOICE & DESIGN OF THE CNG STATION

LAND AREA

ü Gas Supplier Inlet è # of Stages for the Compressors

ü Compressor Capacityè According to your required parameters

ü Availability of Powerè Electrical or Gas Engine Power

ü Gas Quality è Filtering & Gas Dryer Equipments Added

ü Manufacturer Country è Customs Taxes & Currency Exchange

ü Land Ownership è Buy or Rent

ü Size of Land è According to your parameter requirment.

ü Certification è Must be accordance to a approve standardsGOVERNMENT APPROVALS

CAPI

TAL

EXPE

ND

ITU

RE C

OST

TO

BE

DRE

CIAT

ED

GO GREEN

ü Certification è Must be accordance to a approve standards

ü Local Government Licenses or ApprovalGOVERNMENT APPROVALS

TERMS & CONDITION OF THE GAS SUPPLY

ü Cost of Gas from supplier

ü Currency being used.

ü Minimum “Take or Pay” & Maximum Surcharge Penalty

ü Payment Terms & the basis of volume metering used

OPERATIONAL & MAINTENANCE COST

ü Power usage bill.

ü Manpower & Labor Cost.

ü Routine & Non-Routine Maintenance Cost.

ü Loan Interest & Taxes Expenses.

COST

OF

OPE

RATI

NG

&

MA

INTE

NA

NCE

CALCULATING YOUR PRELIMINARY ESTIMATE COST STRUCTURE*

GO GREEN

* Assumption based figure from historical CNG development

CALCULATING PRELIMINARY OPERATING COST VARIABLES

GO GREEN


MOTHER STATION INDUSTRY CUSTOMERSCNG CASCADE CYLINDERDOWNLOADING AT INDUSTRY

CNG CASCADE CYLINDERFILLING

Kilometers distance and ease of traffic

Interval [ ? ] time

[ ? ] filling per day

CONSIDERATION INVESTMENT FACTORS CNG TRANSPORT

GO GREEN

CAPEX:

• Storage Cylinder (type I, II, III, or IV)

• Truck Trailer (10 ft, 20 ft, or 40 ft Module truck carrier)

OPEX :

• Compressed Natural Gas Supply (if bought FOB)

• Transportation cost (travel distance for fuel and operating costs)

• Depreciation of your assets

CAPEX:

• CNG Station

• Land

OPEX :

• Gas supply

• Workers

• Depreciation of the Station

CAPEX:

• Site Development

• Regulators System\

• New Piping ( if needed )

CNG PROVIDER CUSTOMERS

DATA REQUIRED INPUTS :

INDUSTRIAL CLIENT'S GAS CONSUMPTION DATA *

1. Average daily m3 gas volume consumption : m3/day2. Daily Operating Hours : hour3. Average m3 of gas consume per hour : (1) / (2) m3/hour4. Operating days per month : day5. Average monthly gas consumption per month : (1) X (4) m3/month

ESTIMATION OF NUMBER CNG CANISTER SKID NEEDED *

6. CNG Storage Capacity per skid : m3

* Formula Simulation Example made by Presenter for illustration

GO GREEN

6. CNG Storage Capacity per skid : m37. Time to consume gas from skid : (6) / (3) hour8. Estimate KM distance from Jakarta : km9. Average km distance speed in Transporting Time per Hour : km/hour10. Estimation transport time from station to delivery point : (8) / (9) hour11. Time available for canister to refill gas at station : (7) - (10) hour12. Compressor capacity m3/hr available at station : m3/hour13. Estimated filling time at Station : (6) / (12) hour14. Number of CNG Storage Skid needed : (7) / (11) units**

** minimum 2 units

“Designing and custom made the cascade Tube skid capacity, if necessary, toward the customer gas requirement consumption and road conditions….”

DATA REQUIRED INPUTS :

INDUSTRIAL CLIENT'S GAS CONSUMPTION DATA *

Average daily m3 gas volume comsumption : 8,000 m3/dayDaily Operating Hours : 24 hourAverage m3 of gas consume per hour : 333 m3/hourOperating days per month : 25 dayAverage monthly gas consumption per month : 200,000 m3/month

ESTIMATION OF NUMBER CNG CANISTER SKID NEEDED *

CNG Storage Capacity per skid : 2,000 m3

* Result Simulation Example made by Presenter for illustration

GO GREEN

CNG Storage Capacity per skid : 2,000 m3Time to consume gas from skid : 6.0 hourEstimate KM distance from Jakarta : 100.0 kmAverage km distance speed in Transporting Time per Hour : 30.0 km/hourEstimation transport time from station to delivery point : 3.3 hourTime available for canister to refill gas at station : 2.7 hourCompressor capacity m3/hr available at station : 2,000 m3/hourEstimated tIme filling at Station : 1.0 hourNumber of CNG Storage Skid needed : 3.0 unit

Typical Industrial Daughter Reduction Equipment

GO GREEN

MAIN DRIVES FOR FUTURE CNG INDUSTRIAL APPLICATIONS

GO GREEN

(1). INDONESIA’S CONDITION

ü Indonesian dependency on oil fuel , as we’re NO LONGER a Nett Oil Exporter Country;

ü Huge potential gas reserve, with proven reserve of 94,78 TCF* and potential reserve of 87.73 TCF*, Indonesia is considered as country with largest natural gas reserve;

ü Limited pipeline infrastructure;ü LNG is NOT yet available for domestic use;ü Government program to reduce emission level and increase

GO GREEN

ü Government program to reduce emission level and increase the monetization of stranded gas.

ü Industrial gas demand exceeds supply due to lack of pipeline infrastructure.

ü Many stranded small scale gas reserves.

“CNG as another means of gas transportation aside from conventional pipeline and LNG”

* BASED UPON BLUEPRINT PENGELOLAAN ENERGI NASIONAL 2005 – 2025 INDONESIA DEPARTMENT ESDM

(2). VOLUME

With CNG bulk sale selling can reach your economies of scale of the CNG Station.

GO GREEN

Target Sale Price at Mother Stations

: Estimate Cost of Running Your Stations

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

Volume m3/month 1,080,000 1,200,000 1,320,000 1,440,000 1,560,000 1,680,000 1,800,000 1,920,000 2,040,000 2,160,000

Economical CNG Station Margin ** $ 0.14 $ 0.13 $ 0.12 $ 0.11 $ 0.10 $ 0.09 $ 0.09 $ 0.08 $ 0.08 $ 0.07 Assumption Pipeline Gas * $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 Sale Price before VAT at Station $ 0.39 $ 0.38 $ 0.37 $ 0.36 $ 0.35 $ 0.34 $ 0.34 $ 0.33 $ 0.33 $ 0.32 VAT 10% $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 Sale Price of CNG at Station $ 0.43 $ 0.42 $ 0.40 $ 0.39 $ 0.38 $ 0.38 $ 0.37 $ 0.36 $ 0.36 $ 0.35

$-

$0.05

$0.10

GO GREEN


Gas Upstream Infrastructure

Well Head Gas PlantMetering System

Gas Customers / Daughter Stations Gas Customers / FactoriesGO GREEN

NGV CustomersGas Downstream Infrastructure

PIPELINEMETERING

SYSTEMDRYER

COMPRESSOR

COMPRESSOR

BY PASS SYSTEM

GO GREEN

STORAGE

CYLINDERDISPENSER

#2DISPENSER

#1DISPENSER

#3

FILL POINT #1

(3). COMMERCIALLY MORE PROFITABLE

The competitor in selling CNG to industries in Indonesia are other fuel energy that are

more expensive.

GO GREEN

Natural Gas Supplier

Natural Gas Pipeline

CNG On-line Station

CNG Trucking Fleets

Industrial

+ + =$ 5 - $ 6 / mmbtu $ 3 - $ 4 / mmbtu $ 2 - $ 4 / mmbtu $ 2 - $ 4 / mmbtu+ $ XX / mmbtu

GO GREEN

Gas Customers / Factories

* Based on PT. Perusahaan Gas Negara 2012 Gas price in West Java Region & upon RRS evaluation assumption on general CNG Station Operational Cost

Fuel unitHeating Value Price

Btu/unit kcal/unit US$/MMBTU

KEROSENE Liter 35,079 8,840 32.94

GASOLINE Liter 33,000 8,316 28.00

HSD Liter 35,964 9,063 23.06

MFO Liter 36,786 9,270 19.76

HFO Liter 38,754 9,766 21.41

LPG Kg 44,524 11,220 21.97

THE PRICE DEVIATION BETWEEN GAS AND OTHER FUEL IN INDONESIA

NG Pipeline (PT. PGN price Jakarta) m3 36,798 8,919 8.90

NG Pipeline (PT. PGN price Surabaya) m3 37,257 9,031 9.10

NG Pipeline (PT. PGN price Medan) m3 37,257 9,031 10.00

CNG at Mother Station (FOB Price) * m3 35,526 9,224 10.50

CNG transported to Customer < 100 km m3 35,526 9,224 15.00

CNG transported to Customer > 100 km m3 35,526 9,224 18.00

CNG Price

GO GREEN

* 2011 estimate pricing figure from average APCNGI members market price

DISCLAIMER

Pictures used in this presentation are for the purposes of illustration only. Their appearance does not imply endorsement or criticism of their quality or suitability for

any particular CNG project. Figures number are also for illustration purposes that can varied depending on a certain project requirement.

GO GREEN

can varied depending on a certain project requirement.

THANK YOU FOR YOUR ATTENTION

Operational OfficeJl. Danau Tondano No. A1. Bendungan Hilir. Tanah Abang. Jakarta Pusat. 10210.Phone: 021-57902481/021-57902482. Fax: 021-5731609 Email:[email protected]

PT. RAJA RAFA SAMUDRAMailing Address:Jalan Pertani No. 18 / Kavling ADuren Tiga. Pancoran. Jakarta Selatan. IndonesiaPhone / Fax : +62 21 7990467 / +62 21 79199042Website: http://www.rajarafasamudra.com

Member of:

cng industry players in indonesia - raja rafa...

Documents