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INTEGRATING OFFSHORE AND ONSHORE NATURAL GAS INFRASTRUCTURES TO MARKETSby
Danny PradityaDirector of Commerce PT. Perusahaan Gas Negara (Persero) Tbk
Disclaimer:The information contained in our presentation is intended solely for your personal reference. In addition, such information contains projections and forward-lookingstatements that reflect the Company’s current views with respect to future events and financial performance. These views are based on assumptions subject to variousrisk. No assurance can be given that further events will occur, that projections will be achieved, or that the Company’s assumptions are correct. Actual results may differmaterially from those projected.
Table of content1. PGN and the history of Indonesia Domestic Gas Utilization2. PGN Business Model3. PGN Network Infrastructure – Transmission and Distribution4. Challenges in Providing Natural Gas for Power Market
5. Challenges in Providing Natural Gas for Industrial Estate Market6. Business Opportunity- Multi Modal Gas Supply7. Closing Remarks
PGN and the history of Indonesia Domestic Gas UtilisationPGN is Indonesia Gas SOE with strong commitment to increase domestic gas utilization through national strategic gas infrastructure development and gas market initiator
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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
The Growth of Infrastructure and Gas Utilisation in Indonesia
Pipa Gas Hilir Pipa Hulu Menjadi Hilir Konsumsi Gas Domestik Ekspor Gas
SSWJ Transmission Developed
Grissik – BatamTransmission
Developed
FSRU LampungDeveloped
FSRU NRDeveloped
PGN Business ModelLeading Player in Indonesia Natural Gas Transmission and Distribution
PGN manages more than 120.000 of
Indonesia domestic gas clients. We serve
all segment of gas user from industrial,
power plant, commercial to household and transportation.
PGN Network Infrastructure – Transmission and Distribution
North Sumatera and Riau Island
distribution network 761 km
Western Java, Lampung, Palembangdistribution network 2,707 km
East Javadistribution network 761
km
Tarakan
Sorong
1. Area Medan2. Area Batam3. Area Pekanbaru4. Area Palembang5. Area Lampung6. Area Cilegon7. Area Tangerang8. Area Jakarta9. Area Bogor10.Area Bekasi11.Area Karawang12.Area Cirebon13.Area Semarang14.Area Surabaya15.Area Pasuruan16.Area Sidoarjo17.Area Tarakan18.Area Sorong
Area of OperationPGN Gas Infrastructure represent more
than 70% natural gas downstream infrastructure in Indonesia
This only covers of 30% infrastructure required
Challenges in Providing Natural Gas for Industrial Estate Market
Sourcer: RPJMN 2015-2019
Bintuni Bay Industrial Estate
Oil and Gas Industry and Fertilizer
Bitung Bay Industrial Estate
Agro Industry and Logistic
Morowali Industrial Estate
Smelter Ferronickel,Stainless steel industry
and its derivatives
PaluIndustrial Estate
Rattan, Rubber, Cacao (agro) Based Industry
and Smelter
Konawe Industrial Estate
Ferronickel Smelter Industry, Stainless Steel
and Downstream Product
Buli Industrial Estate
Smelter Ferronickel,Stainless steel industry
and its derivatives
Bantaeng Industrial Estate
Ferronickel Smelter Industry, Stainless Steel
and Downstream Product
Batu Licin Industrial Estete
Steel Industry
LandakIndustrial Estate
Rubber Industry, CPO
Ketapang Industrial Estate
Alumina Industry
Kuala TanjungIndustrial Estate
Aluminums Industry, CPO
Tanggamus Industrial Estate
Maritime Industry and Logistics
Sei Mangkei Industrial Estate
CPO Processing Industry
Jorong Industrial Estate
Downstream of Mineral Resources (Bauxite),
Palm Oil
Ref: World Bank, BI, BPS
Indonesia Continuous Economic Growth Means Continuous EnergyDemand: Increase Electricity Demand
The growth of Electricity Demand and the Indonesia energy mix for Electricity Generation plan define the gas demand for electricity in 2022 will reach 440.000 Gwh
Economic Growth and Rapid Electricity Demand Growth
Challenges in Providing Natural Gas for Power Market
GAS RESERVE (TSCF)PROVEN = 108.40 TSCFPOTENCIAL = 48.74 TSCFTOTAL = 157.14 TSCF
The electricity demand is spread out through the archipelago making PLN as a gas user with multi destination requirement.The diverse location will define the diverse infrastructure cost and PGN as National Gas company is striving its best effortsto serve the demand.
Recommendation Multi Modal Gas SupplyTo serve potential customers who have high ability to pay, low demand and located in scatteredlocation, PGN will use multi-moda gas transportation, this includes CNG and Mini LNG.
IPP§ Eastern Sumatera§ Southern Sumatera§ Bangka – Belitung § Pontianak
§ Northern Sumatera§ Dumai § Pontianak§ Bangka – Belitung§ Southern Sumatera
§ Bali§ Lombok – NTB§ NTT
§ Lampung§ Southern Sumatera§ Bali§ Lombok
§ Break-Bulking § Mini LNG Ship § Mini LNG Ship§ CNG Trucking§ CNG Marine
Moda
CNG PeakerMini LNG Eastern Mini LNG WesternFSRU Lampung
Key Recommendations• The most promising markets which are in proximity to PGN’s planned Mini LNG terminals in Western & Eastern area and can be
supplied either through LNG trucks or via a ISO tank intermoda/LCT carrier• Based on the gas supplies it can secure, Gagas can also examine the potential of establishing multi-moda gas supply chains to other
markets like Bali, North / Central Sumatra and Sulawesi in the future
Closing Remarks
1. Indonesian gas market still continue to grow, align with government plan to develop industrial estate and increasing
demand from power sector. Based on the National Energy Mix Policy, by 2025 natural gas is expected to take up to 30
part of total energy demand, twice of todays volume at 3800 Mmscfd.
2. To meet above target, extensive natural gas infrastructure development is a must. This include CNG, LNG receiving
terminal, FSRU, small/medium-scale LNG logistic and land based LNG trucking. Ooprtunity for technology provider and
infrastructure provider.
3. An efficient and reliable natural gas infrastructure that will serve the whole nation can only be developed through Nation
Grid Infrastructure. PGN will continuously play its role as state’s owned enterp.rise to serve the nation by propagating and
developing natural gas infrastructure.
4. Synergy between state’s owned enterprise is required to have integrated and solid infrastructure. A joint planning is
mandatory to avoid unnecessary duplication and inefficiency. Public- Private Partnership scheme is also encouraged tpo
accelerate infrastructure growth.