pgn business presentation
TRANSCRIPT
Perusahaan Gas NegaraPerusahaan Gas NegaraAugust 2008August 2008
AGENDAAGENDA
II.. PGN’s Overview & The Year in ReviewPGN’s Overview & The Year in Review
II.II. Indonesian Gas IndustryIndonesian Gas Industry
i ii iIII.III. Business Review Business Review
IV.IV. Project ProgressProject Progressj gj g
V.V. OOperational and Financial Resultsperational and Financial Results
VI.VI. Future PlanFuture Plan
I.I. PGN’s Overview & Recent PGN’s Overview & Recent UpdateUpdate
PGN’s OVERVIEWPGN’s OVERVIEW
• A national leading gas transmission and distribution company.
• Engaged in domestic downstream natural gas business to provide natural gas for industrial, commercial and household customers.
• As of Q1 2008, PGN control 87% market share of transmission business and 93% of distribution.
A f Q1 2008 716 39 MMS fd f t l t t d th h t i i• As of Q1 2008, 716.39 MMScfd of natural gas were transported through transmission pipeline and 526.64 MMScfd gas sold to domestic customers using distribution network.
• Listing on JSX and SSX (now Indonesia Stock Exchange), known as PGAS, on DecemberListing on JSX and SSX (now Indonesia Stock Exchange), known as PGAS, on December 15, 2003 with IPO price of IDR 1,500 per share.
• The Republic of Indonesia owns 55% of shares while Public holds 45% of shares.
• On August 4, 2008, PGN’s market capitalization was IDR 48.8 trillion (USD 5.4 billion), g , , p ( ),ranked 9 among top ten listed companies and ranked 4 among top ten listed SOE, in Indonesia Stock Exchange.
• PGAS exercised a 5:1 ratio stock split (Closing Price at Rp.2,125) on August 4, 2008.
11
RECENT UPDATERECENT UPDATE
South Sumatra West Java (“SSWJ”) Gas Pipeline Project
Pagardewa – Labuhan Maringgai – Bojonegara and Labuhan Maringgai – Muara Bekasi gas pipelinesections have been in operation since March and July 2007. Grissik – Pagardewa gas pipeline sectionh b i ti i O t b 2007has been in operation since October 2007.
Pagardewa Compressor Station is in operation since April 2008.
Currently, the South Sumatra West Java (the system) gas pipeline is capable to transport gas up to470 MMScfd.
The 463 km of West Java Main Gas Distribution Pipeline is scheduled to complete in 2009. Going forward,the gas distribution expansion will be adjusted in line with the market demand.
New gas supply and sales agreements.
A 50 MMScfd Head of Agreement signed with ConocoPhillips to supply gas from Ketapang block forg g p pp y g p gEast Java network. The gas delivery is scheduled to start in 2011 with 5 years contract period.
150 MMScfd firm basis and 100 MMScfd interruptible basis Gas Sales Agreement with PLN signed inApril 2008 for 3 years. These new gas contracts are an addition to the previous 50 MMScfd firm basisGas Sales Agreement signed in July 2007 for 5 years period. The gas will be used for PLN power plantg g y y p g p pin Muara Tawar.
11.75 million ton LNG supply MoA, from Mahakam Blok PSC, signed by Total E&P Indonesie‐INPEXCorporation and PGN LNG consortium in July 2008.
22
IIII. . Indonesia Gas IndustryIndonesia Gas Industry
INDONESIAN GAS MARKET OVERVIEW INDONESIAN GAS MARKET OVERVIEW • Indonesia has the largest proven natural gas reserves in Asia Pacific
– As of Jan 2007, proven gas reserves in Indonesia were 106.01 trillion cubic feet and potentialgas reserves in Indonesia were 58.98 trillion cubic feet
Th t i i d di t ib ti i f t t h i ifi t l i th d ti i d t• The transmission and distribution infrastructure has a significant role in the domestic gas industry
– Majority of the gas reserves are located in Sumatra and Kalimantan, far away from the fuel‐consuming, industrial areas like Java
– Natural gas utilization (export and domestic) has reached 2.71 TSCF in 2007 and is expected toincrease going forward. This rising trend would require a further expansion of the nation’spipeline network.Indonesian Gas Reserves as of 1 Jan 2007
Proven = 106.01 TSCF
Gas Reserves (TSCF)
33
Potential = 58.98 TSCF
Total = 164.99 TSCF
Source: BPH Migas
POTENTIAL SHIFT FROM OIL TO GAS CONSUMPTION POTENTIAL SHIFT FROM OIL TO GAS CONSUMPTION • Primary energy consumption in Indonesia has reached 11.8 BScfd in 2006• Oil contribution in total energy consumption continue to decline due to the
surging oil price and the reduction of oil subsidies in Indonesia– Indonesian government reduced the oil subsidies in October 2005 and
May 2008. As a result, the subsidized HSD price has jumped from
Indonesia’s Primary Energy Consumption by Energy Type
May 2008. As a result, the subsidized HSD price has jumped fromUSD 5.84/MMBtu in September 2005 to USD 16.37 /MMBtu in May2008, representing a price increase of more than 100%
– Gas has a strong price advantage against oil and the oil‐related subsidyreduction resulted in a major industry shift from oil to gas consumption
– The new gas transmission pipeline is predicted to accelerate the shiftfrom oil to gas consumption
Source: BP Statistical Review of World Energy 2007
Relative Energy Price (as of July 15, 2008) PGN Gas Price Vs HSD Price
US$/MMBtu
33.51
21.2
33.7
35.2
36.2
33.0
Gasoline (subsidized)
Diesel (non‐subsidized)
HSD (non‐subsidized)
Kerosene (non‐subsidized)
Gasoline (non‐subsidized)
20.00
30.00
40.00
5.49
16.84
7 8
13.0
20.9
16.8
18.1
Kerosene (subsidized)
LPG (subsidized)
MFO (non‐subsidized)
HSD (subsidized)
LPG (non‐subsidized)
8/1/2008
0.00
10.00
20.00
1/31/2002 9/23/2003 5/15/2005 1/5/2007
44Source: Pertamina
5.5
7.8
0 5 10 15 20 25 30 35 40
Distributed Gas
Kerosene (subsidized)
USD / MMBtu
Note: based on crude oil price of USD 124/barrel
HSD Subsidized Price (US$/MMBtu)HSD Unsubsidized Price (US$/MMBtu)PGN Average Sales Price (US$/MMBtu)
INDONESIAN GAS INDONESIAN GAS MARKET OUTLOOKMARKET OUTLOOK
Contracted, Committed and Potential Gas Supply & Demand for Major Regions in Indonesia
S o u rc e : D irje n M ig a sR E G I I (N O R T H S U M A T E R A )R E G I I (N O R T H S U M A T E R A )REG II (NORTH SUMATERA)
Year 2007 2009 2011
M e d a n
-1 1 8 .7-1 9 2 .2-1 8 3 .5B a la n c e
2 1 9 .72 1 9 .72 1 8 .5D e m a n d
1 0 12 7 .53 5S u p p ly
2 0 1 12 0 0 92 0 0 7Y e a r
-1 1 8 .7-1 9 2 .2-1 8 3 .5B a la n c e
2 1 9 .72 1 9 .72 1 8 .5D e m a n d
1 0 12 7 .53 5S u p p ly
2 0 1 12 0 0 92 0 0 7Y e a rYear 2007 2009 2011
Supply 35 27.5 101
Demand 481.5 526.7 535.7
Balance -446.5 -499.2 -434.7
G r is s ik
D u r i
D u m a i
M e d a n
K A L IM A N T A N
SUMATERA S U L A W E S I
IR I A N J A Y A
J a k a r ta
P a g a r d e w a
J A W A
R E G IV (C E N T R A L J A V A )R E G IV (C E N T R A L J A V A )R E G II I (C E N T R A L , S O U T H S U M A T E R A & W E S T J A V A )R E G II I (C E N T R A L , S O U T H S U M A T E R A & W E S T J A V A ) 9 6 3 .77 4 7 .35 6 5 .4D e m a n d
8 2 1 .97 9 4 .84 1 9 .8S u p p ly
2 0 1 12 0 0 92 0 0 7Y e a r
R E G V (E A S T J A V A )
9 6 3 .77 4 7 .35 6 5 .4D e m a n d
8 2 1 .97 9 4 .84 1 9 .8S u p p ly
2 0 1 12 0 0 92 0 0 7Y e a r
R E G V (E A S T J A V A )
REG III (CENTRAL, SOUTH SUMATERA & WEST JAVA) REG IV (CENTRAL JAVA)
REG V (EAST JAVA)
Year 2007 2009 2011
Supply 419.8 794.8 981.9
Demand 926.4 1,155.3 1,351.7
2-2 6-1 4 2 .3B a la n c e
1 9 31 9 5 .71 4 3D e m a n d
1 9 51 6 7 .90 .7S u p p ly
2 0 1 12 0 0 92 0 0 7Y e a r
( )
2-2 6-1 4 2 .3B a la n c e
1 9 31 9 5 .71 4 3D e m a n d
1 9 51 6 7 .90 .7S u p p ly
2 0 1 12 0 0 92 0 0 7Y e a r
( )
-7 9 1 .3-7 2 9 .7-5 6 7 .8B a la n c e
3 4 9 1 .83 4 9 1 .72 9 8 1 .6D e m a n d
2 7 0 0 .52 7 6 1 .92 4 1 3 .8S u p p ly
2 0 1 12 0 0 92 0 0 7Y e a r
-7 9 1 .3-7 2 9 .7-5 6 7 .8B a la n c e
3 4 9 1 .83 4 9 1 .72 9 8 1 .6D e m a n d
2 7 0 0 .52 7 6 1 .92 4 1 3 .8S u p p ly
2 0 1 12 0 0 92 0 0 7Y e a r -1 4 1 .7-4 7 .6-1 4 5 .6B a la n c e -1 4 1 .7-4 7 .6-1 4 5 .6B a la n c eYear 2007 2009 2011
Supply 2,413.8 2,761.9 3,100.5
Demand 3,557.6 4,408.6 4,467.3
Balance -1,143.8 -1,646.7 -1,366.8
Year 2007 2009 2011
Supply 0.7 167.9 195.0
Demand 198 256.3 259.9
Balance 197 3 86 6 64 9
, ,
Balance -506.6 -360.4 -369.7
55
, , , Balance -197.3 -86.6 -64.9
IIIIII. . Business Business ReviewReview
PGN’s EXISTING BUSINESSPGN’s EXISTING BUSINESS
• PGN has a dominant market position in gas distribution and transmission in Indonesia• The SSWJ Project will provide greater control over volumes delivered to the distribution business and
generate stable earnings from the transmission volume
Gas PurchaseGas Purchase
m
PGNDistribution
SSWJ
PGNDistribution
SSWJ
• Retail & Industry
Customers
• IPP
• Retail & Industry
Customers
• IPP
Sales (GSA)GSPAGSPA
Upstream
• SSWJ (PGN)• Grissik – Duri (TGI)
IPPIPP
PGNT i i
PGNT i i
• Chevron• ChevronGTAGTA
TransportationTransportation Singapore (TGI)( )
• Grissik – Singapore (TGI)TransmissionTransmission • Singapore• Singapore
Gas Supply for Distribution Business Distribution – Sale of Gas to End User TTransmission – Transport Third Party’s Gas
• Gas Transmission Contract (GTA)– Long-term contract– Minimum ship-or-pay volumes– Tariffs in US$
• Gas Transmission Contract (GTA)– Long-term contract– Minimum ship-or-pay volumes– Tariffs in US$
• Gas Sales & Purchase Agreement (GSPA)
– Long-term contract– Take-or-pay volumes
• Gas Sales & Purchase Agreement (GSPA)
– Long-term contract– Take-or-pay volumes
• Gas Sales Agreements (GSA)– Minimum pay volumes– Price in US$ & IDR
• Gas Sales Agreements (GSA)– Minimum pay volumes– Price in US$ & IDR
66
– Fix price in US$– Fix price in US$
EXISTING TRANSMISSION NETWORKEXISTING TRANSMISSION NETWORK• PGN and its 60%-owned subsidiary TGI operate transmission pipelines with a total length of 1,074km and a
combined capacity of 869 mmscfd. After completion of the SSWJ Project, the capacity will increase to 1,839 mmscfd, representing an increase of more than 100%
Grissik – SingaporeCapacity = 364 mmscfd
PLN – MedanCapacity = 80 mmscfd
Duri
Medan Grissik – Pagardewa – Labuhan Maringgai – Muara Bekasi – Rawamaju (SSWJ II)Capacity = 440 mmscfd
Grissik
Pagardewa
KALIMANTAN
SULAWESI
PAPUA
Grissik – Duri
JakartaJAWA
Capacity = 425 mmscfd
Pagardewa – Labuhan Maringgai – Cilegon (SSWJ I)Capacity = 530 mmscfd
77
EXISTING DISTRIBUTION NETWORKEXISTING DISTRIBUTION NETWORK
• PGN has developed an extensive distribution network covering 9 major cities in Indonesia• The network and facilities are managed by three SBUs – West Java (SBU I), East Java (SBU II) and Sumatra (SBU III)• Household selling price increased by 60%, in December 1, 2007, to USD 7.53/MMbtu.• Industrial selling price increased by 9.73%, in August 1, 2007, to USD 5.49/MMBTU.g p y , g , ,
Medan – SBU IIICapacity = 46 mmscfdCapacity = 46 mmscfd
Batam – SBU IIICapacity = 75 mmscfd
PAPUA
Surabaya & Surrounding – SBU II
Pekanbaru – SBU IIICapacity = 65 mmscfd
Palembang – SBU IC it 4 fd
Bekasi + Karawang – SBU IC it 70 fd
KALIMANTAN
SULAWESI
Cirebon – SBU ICapacity = 8 mmscfd
Capacity = 230 mmscfd
Jakarta + Bogor – SBU ICapacity = 175 mmscfd
Capacity = 4 mmscfd
Banten – SBU ICapacity = 79 mmscfd
Capacity = 70 mmscfd
JAWA
Capacity 8 mmscfdCapacity 175 mmscfdTotal Capacity : 752 MMScfd
Total Length : 3,212 km
88
STRONG DISTRIBUTION CUSTOMER BASESTRONG DISTRIBUTION CUSTOMER BASE
• Industrial customers continue to dominate PGN’s customer base and drive PGN’s distribution business growth. As of March 31, 2008, sales volume of industrial customers was 519 MMScfd or equal to 98 6% of PGN’s salesMMScfd or equal to 98.6% of PGN s sales.
Q1 2008 I d t i l C t C ti2007 I d t i l C t C ti Q1 2008 Industrial Customer Consumption 2007 Industrial Customer Consumption
Chemical 18%
Power Plant 20%
Chemical 10%
Power Plant 21%
Textile 4%
Food 8%
Ceramic 16%
Textile 5%
Food 9%
Ceramic 12%
Fabric Metal 6%
Fabric Metal 3%
Basic Metal 5%
Glass 6%
Others 9%
Basic Metal 8%
Glass 9%
99
Glass 6%
Paper 13%
Paper 9%
Wood 2%
PGN’s MARKET SHAREPGN’s MARKET SHARE
Q1 2008 DistributionQ1 2008 Transmission
PGN 87% Pertagas 13% PGN 93% Manggala 1%
Bayu Buana 1% Rabana 1%
Sadikun 1% EHK 2%
Banten Inti Gasindo 1%
1010
VOLUME PROJECTIONVOLUME PROJECTION
((MMScfdMMScfd))
Distribution 2008E
SBU I 380
SBU II 144SBU II 144
SBU III 76
Total 600
Transmission 765Note :- 2008 average Distribution volume includes potential new contracts of 200 MMScfd with PLN
1111
g pwhich is expected to start flowing the gas in the mid of August 2008.
IVIV. . Project ProgressProject Progress
SSWJ PROGRESS & KEY MILESTONESSSWJ PROGRESS & KEY MILESTONES
Pagardewa – Labuhan Labuhan Maringgai – Muara Pagardewa Gas Compressor was
The overall SSWJ Project is expected to be completed by Oct 2008 with the completion of the Pagardewa-Labuhan Maringgai parallel line. The total capacity of SSWJ is expected to be 970 MMScfd
March 2007 July 2007 October 2007 –Completion of SSWJ II
March 2008 October 2008 –Completion of SSWJ I
Maringgai –Bojonegara sections were completed and
commenced operation
Bekasi section was completed and gas flow from Pertamina began. The gas pipelines can transport 230 mmscfd of gas from South Sumatra to West
Java
Grissik-Pagardewasection was
completed and gas flow from Conoco
Phillips began
completed and will maximize the flow rate of gas from Conoco Phillips and Pertamina. The
compressor will increase the total capacity from 230 mmscfd to approximately 470 mmscfd
Pagardewa-Labuhan Maringgai Parallel Line section is expected to
be completed
230 MMScfd 470 MMScfd 970 MMScfd 230 MMScfd Transmission Capacity:
ConocoPhillips ConocoPhillips Gas PlantGas Plant
Latest status (as of July 29, 2008):- Cleaning & gauging (KP4 to KP271), hydrostatic test (KP4 to KP271), sectional valves installation, future connectionsinstallation, drying, nitrogen purging and mechanicalcompletion were completed
Pertamina Gas Pertamina Gas PlantPlant
completion were completed.
- Target for commissioning: end of August 2008
- Construction progress : 99 %
- Overall progress (including material) : 99.6%
Operated
- Target for completion : October 2008
Parallel LinePagardewa Compressor
1212
WEST JAVA DISTRIBUTION EXPANSION WEST JAVA DISTRIBUTION EXPANSION
• PGN is expanding its distribution
The West Java Distribution Expansion Project with 463km main pipelines commenced in 2005. The project aims to distribute the gas from SSWJ and is expected to be fully completed in 2009
The West Java Distribution Expansion Project with 463km main pipelines commenced in 2005. The project aims to distribute the gas from SSWJ and is expected to be fully completed in 2009
p gnetwork in Jakarta, Bekasi, Cikampek, Bogor, Banten and the surrounding areas
• The expansion started in 2005 and is
Palembang
The expansion started in 2005 and is scheduled to reach completion in 2009. The Project will expand the distribution network in West Java by 463 km in line with increasing gas volume transported from South Sumatra.
Karawang
Lampung
Bekasi
• After completion PGN total distribution capacity will reach +1,500 MMScfd.
Th j t i f d d b W ld B k i
BantenBogor Cirebon
• The project is funded by World Bank via IBRD (USD 80 million) and PGN’s internal cash flow
1313
WEST JAVA DISTRIBUTION PROGRESS & KEY MILESTONESWEST JAVA DISTRIBUTION PROGRESS & KEY MILESTONES
Distribution mainline for Bitung-
Batu Ceper was
Distribution mainline for Bitung-Batuceper
and distribution
Sept 2007 Dec 2007Aug 2007Distribution mainlines for
Rawamaju-Kalimalang-Kedep-Pondok Ungu and Rawamaju
Distribution mainlines for
Mar & Jun 2008
Oct 2008 – Pipeline Completion of World Bank
Packages Feb 2009 – PipelineBatu Ceper was
partially completed and commenced
operations to strengthen the
existing network
and distribution branchlines for Banten, Bogor, Jakarta, Bekasi
and Karawang are expected to complete
by Dec 2007
Pondok Ungu and Rawamaju-Walahar were partially
completed and commenced operations. The pipelines
received gas from SSWJ to PGN’s existing and new
customers
Banten and Greater
Jakarta are expected to
complete
Feb 2009 Pipeline Completion of PGN
PackagesDec 2009 – Completion of Bojonegoro-Serpong transmission mainline
*
1414
PROJECTED CAPEXPROJECTED CAPEX
j 2008
(Million USD)
Project 2008E
Transmission 163.7
Distribution 103.0
LNG 0.9
Total 267.6
1515
VV. . Operational & Financial ResultsOperational & Financial Results
OPERATING PERFORMANCE HIGHLIGHTSOPERATING PERFORMANCE HIGHLIGHTS
Transmission Volume Distribution Volume
69%78% 84% 81% 82%
750
1,000
70%
90%
110%
46% 47%
56% 53%
70%
350
400450
500
60%
70%
80%
602 681 735 707 716250
500
mm
scfd
-10%
10%
30%
50%
308 323422
369
527
46% 47%
150200
250
300
mm
scfd
20%
30%
40%
50%
0
250
2005 2006 2007 Q1 2007 Q1 2008-50%
-30%
-10%
Transmission Volume Transmission Utilization (RHS)
0
50100
2005 2006 2007 Q1 2007 Q1 20080%
10%
20%
Di t ib ti V l Di t ib ti Utili ti (RHS)Transmission Volume Transmission Utilization (RHS) Distribution Volume Distribution Utilization (RHS)
1616
FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS
Revenue Trend
1,208
8,802
6,6327 0008,0009,000
10,000
39%
44%47% 52%
53%
40%
50%
4,000
4,500
5,000
EBITDA and EBIT Trend
4,2805,531
7,594
2863211,846
2,768
1,101
1,154
5,434
6,632
2,0003,0004,0005,0006,0007,000
In R
p. b
illion
s
2 1412,929
4,094
2,3933,082
20%
30%
40%
1 000
1,500
2,000
2,500
3,000
3,500
In R
p b
illio
ns
1,5602,447
286
01,0002,000
2005 2006 2007 Q1 2007 Q1 2008Distribution revenue Transmission revenue
2,141
9601,4721,552
,
809 1,125
0%
10%
0
500
1,000
2005 2006 2007 Q1 2007 Q1 2008
EBITDA EBIT EBITDA margin (RHS)
Net Income
1,500
2,000
s
Net Income
862
1,893 1,573
514 4360
500
1,000
Rp
. billio
ns
02005 2006 2007 Q1 2007 Q1 2008
In
1717
INCOME STATEMENT Q107 INCOME STATEMENT Q107 vsvs Q108Q108
2,768
(billion rupiah)
FX Gain/Loss
L Loss
1,846
LossRp 95 bio
Q1 2007
LossRp 211 bio
Q1 2008Forex as of :- 31 March 2007 US$ 1 = Rp. 9.118- 31 March 2008 US$ 1 = Rp. 9.217
960
1,472
1,125
31 March 2008 US$ 1 Rp. 9.217- 31 March 2007 JPY 1 = IDR 77.58- 31 March 2008 JPY 1 = IDR 92.27
960
295
809
514487 436295
Revenue EBITDA OperatingExpense
Operating Income Net IncomeExpense
Q1 2007 Q1 2008
1818
CONSOLIDATED BALANCE SHEETCONSOLIDATED BALANCE SHEET
(in billion Rupiah) 2007 Q1 2007 Q1 2008 %
Current Assets 3.715 2.860 4.498 57Non Current Assets 16.633 14,404 16.255 13
Total Assets 20.348 17.264 20.753 20
Current Liabilities 3.169 2.752 2.367 (14)Non Current LiabilitiesMinority Interest In Net Assets of a SubsidiaryGovernment Project Funds
10.015729
127
7.644732
127
10.293718
127
35(2)
-Total Shareholders Equity 6.308 6.009 7.248 21
Total Liabilities And Shareholders Equity
20.348 17.264 20.753 20
Forex as of :- 31 March 2007 US$ 1 = Rp. 9.118- 31 March 2008 US$ 1 = Rp. 9.217- 31 December 2007 US$ 1 = Rp. 9.419
1919
IVIV. . Future PlanFuture Plan
LNG RECEIVING TERMINALLNG RECEIVING TERMINAL
LNG Receiving LNG Receiving TerminalTerminalCapacity : 2Capacity : 2 –– 3 MTPA3 MTPA
RegasificationRegasification
Gas Source :Gas Source :Domestic / Domestic / OverseasOverseas
LNG VesselLNG Vessel
Capacity : 2 Capacity : 2 –– 3 MTPA 3 MTPA (250 (250 –– 400 400
mmscfd)mmscfd)
Customers :Customers :-- HouseholdHousehold Distributed through Distributed through
• Based on feasibility study in 2003, to fulfill increasing demand and to secure gas supply in Java, PGN plan to
-- CommercialCommercial-- IndustrialIndustrial
existing pipelineexisting pipeline
y y , g g pp y , pbuild LNG Receiving Terminal that will start to operate in 2014.
• Implementation program:- Deepening Feasibility Study.- Proceed of FEED and EIA.- Socio-cultural study for preparation of land acquisition.- Secure of gas supply from domestic (Bontang-Kalimantan or Tangguh-Papua) or overseas.- 11.75 million ton LNG supply MoA, from Mahakam Blok PSC, signed by Total E&P Indonesie INPEX
Corporation and PGN LNG consortium in July 2008.
2020
DURI DURI –– MEDAN TRANSMISSION PIPELINEMEDAN TRANSMISSION PIPELINE
Project ScopeProject ScopeDuri ‐Medan transmission pipeline (28” ‐ 509km)Additional:
Compressor : Simpang Dumai (9 000 HP)
LocationLocation
Compressor : Simpang Dumai (9,000 HP)Kondur spurline : BY ‐ Simpang Dumai (20” ‐155km)
JustificationJustificationA critical step in sustaining and expanding the North‐Sumatra gas distribution marketStrategic opportunity to establish PGN’s Sumatra gas dominance by locking‐up gas supply Complete the integration of the Sumatra island‐wideComplete the integration of the Sumatra island‐wide transmission network
StatusStatusFeasibility study and FEED have been completed
h d l h b d b GO
Date of Completion: Target 2012
Total Length: 664 km (incl spurline)
Key StatisticsKey Statistics
EIA Methodology has been approved by GOIPrincipal permits from the MEMR has been receivedFinancing arrangements underwayGas supply status from South Sumatera is being negotiated with potential sources like ConocoPhillips
Total Length: 664 km (incl. spurline)
Capacity: 250 mmscfd
2121
negotiated with potential sources like ConocoPhillips and Kondur Dumai
Integrated CBM Development with Pipeline TransmissionIntegrated CBM Development with Pipeline Transmission
South Sumatra
ImplementationImplementation ProgramProgram::
‐ Geological study in Muara Enim, SouthSumatra to identify potential drilling location( ti ll t d b J i tit ti )
Lampung
Bengkulu
(partially supported by Japanese institution)was completed in 2007
‐ Conduct CBM study in South Sumatra andKalimantan to identify potential CBMlocation, inventory CBM drilling, preliminary
Legend:
: CBM Field
drilling design, establish environmentalconsideration, identify regulatory for CBMdevelopment, and recommend CBM modelcontract
CBM supply for existing SSWJ P/LCBM supply for existing SSWJ P/L
• CBM reserves in South Sumatra of 183 TCF
• The CBM fields in South Sumatra are located near the SouthSumatra West Java (SSWJ) transmission pipelines which can betili d ff t k f f CBM d l t d th futilized as off taker of gas from CBM development, and therefore
support CBM upstream activities.
2222
PILOT PROJECT CNG PONDOK UNGUPILOT PROJECT CNG PONDOK UNGU
Dispenser (2 unit)Dispenser (2 unit) TaxiTaxi
CompressorCompressorMRS MRS Gas DryerGas Dryer
k/ lk/ l
Storage TankStorage Tank Priority PanelPriority Panel
FillFill‐‐Post (2 unit)Post (2 unit)Truck/Trailer to Truck/Trailer to
IndustriesIndustries
1. CNG system is developed as a market expansion strategy to meet gas demand outside the PGN’s gas
pipeline network.
2 Site Location at Pondok Ungu Bekasi West Java2. Site Location at Pondok Ungu – Bekasi, West Java.
3. CNG Station is owned and will be operated by PGN to sell the CNG to private distributor company.
4. Station Capacity is 3 MMSCFD to fulfill demand industries and NGV.
5. Start construction in 2008.
2323
6. Start operation in 2009.
7. Status: process of EPC Contractor Bidding.
Thank YouThank YouThank YouThank You
PT Perusahaan Gas Negara (Persero) TbkInvestor RelationsJl K H Zainul Arifin No 20 Jakarta 11140Jl. K H Zainul Arifin No. 20, Jakarta 11140IndonesiaPh: 62 21 6334838 Fax: 62 21 6331632www pgn co idwww.pgn.co.id