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Accelerating Integration of Natural Gas Infrastructure Triharyo Soesilo, Director of Energy Sector Committee for Acceleration of Priority Infrastructure Projects Delivery (KPPIP) August 1 st , 2018 Presentation to Gas Indonesia Summit

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Accelerating Integration of Natural

Gas Infrastructure

Triharyo Soesilo, Director of Energy Sector

Committee for Acceleration of Priority Infrastructure Projects Delivery (KPPIP)

August 1st, 2018

Presentation to Gas Indonesia Summit

Tangguh LNG Train 3 Development

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• Tangguh LNG Train-3 project is further

development of the existing field, which will

be integrated with Train-1 and Train-2. Train-

3 will have the capacity to produce 3.8 MTPA

of LNG.

Location West Papua

Investment Value US$ 7.7 billion (upstream)

Funding Scheme Private (Production Sharing Contract

with BP Berau Ltd)

Project Owner Ministry of Energy and Mineral

Resources

Construction 2017

Operation Target 2020

Deskripsi Latest Status

• The Plan of Development (POD) of Train-3 was issued

in November 2012.

• Environmental Permit was issued in July 2014. Final

Investment Decision (FID) commenced in July 2014.

• As per December 2017, construction progress of

onshore facilites is at 21.9%, and construction progress

of offshore facilities is at 45.3%.

Offshore and Onshore Progress of Tangguh LNG Train-3

3

Based on RUPTL 2018-2027, there is a potential saving of USD 1,96 Billion if all

diesel power plants are converted to gas

4

FUEL

ELECTRICITY

PRODUCTION

(GWh)

CONSUMPTION

(ton, MMBTU,

kL)

FUEL COST

(USD)

FUEL

COST

(cent/kWh)

Coal 134,798 56,850,988 3,979,569,160 2.95

Gas53,562 440,853,000 440,853,000 8.57

Diesel14,550 4,071,845 3,072,026,775

HSD8,549 3,129,480 2,534,879,124 29.65

MFO4,368 942,364 537,147,651 12.30

Sumber: RUPTL 2018-2027 (Kepmen ESDM. No. 1567 K/21/MEM/2018)

4

5

1

2

3

FUEL USD SAVING

DIESEL

HSD ((1-2) x 4) $ 1,802,316,462.71

MFO ((1-3) x 5) $ 162,854,317.92

TOTAL $ 1,965,170,780.63

Rp 26,529,805,538,463.40

Based on estimated calculation, if all power plants with diesel

fuel were converted to gas, therefore estimated potential

saving is about USD 1,96 Billion (IDR 26,53 Trillion).

Sumber: Kompas 29 Desember 2017

About 75% of LNG Tangguh Train-3 capacity will be used by PLN to fulfill the Gas Fired

Power Plant demand

Gas Allocation

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75% of Tangguh Train-3 Gas Production (2.85 mtpa / 407,14 BBTU) will be utilized by PLN for Gas Fired

Power Plant (Under Construction & Existing Power Plant)

LNG TANGGUH 1

20 Std Cargo

(First Phase)

44 Std Cargo

(Second Phase)

LNG TANGGUH 2

16 Std Cargo

Arun Regasification

West Java Regasification

Terminal (NR)

Other regasification

terminals dominated by

PLN

Jawa-1 regasification

Terminal

Power Plant Belawan,

PLTMG Arun

Power Plant Muara

Tawar, Muara Karang,

Tanjung Priok

Power Plant PLN/IPP

Lain

PLTGU Jawa-1

LNG TANGGUH UTILIZATION BY PLN

LNG DES Price

LNG SPA TANGGUH 1 Price = (11.25% REP + 0.75) USD/MMBTU

LNG SPA TANGGUH 2 Price = (11.20% REP + 0.70) USD/MMBTU

1

2

*REP: Realized Export Price

Gas infrastructure development in 6 (six) location by PLN are planned to start

construction in 2019. Main issue is RPP RTRLN.

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PAKET LOKASI STATUS

1. Kr. Raya - Nias Tender schedule to be determined.

2. Babel - Pontianak Pre-Qualification is in progress. Selection result to be announced in Juli 2018.

3. Central Indonesia Pertamina and PGN Consortium is under evaluation. Waiting Proposal Revision submission.

4. FSRU Gorontalo Waiting for tender process to be started.

5. East Indonesia RFP Revision. Proposal evaluation planned on October 2018.

6. Sulawesi Utara, Maluku Utara,

Maluku, Papua BaratIndonesia – Japan collaboration on Gas Infrastructure Study. Location placement dan power capacity.

7. PLTGU Jawa-1 Scheduled to reach Financial Close on September 2018.

8. PLTGU Jawa-3 Partnership process between PT Indonesia Power and potential investor.

1. Kr. Raya - Nias

2. Babel-Pontianak

3. Central Indonesia

4. FSRU

Gorontalo5. East Indonesia

5. Sulawesi Utara, Maluku Utara,

Maluku, Papua Barat

7. PLTGU Jawa-1

8. PLTGU Jawa-3

Details LNG infrastructure development plan and power plants in Papua and West

Papua for Quick Wins

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: LNG Carrier (27.500-30.000) m3 (JV Perusda Papua Barat)

: Onshore / floating LNG storage 4.000-15.000 m3 &

Regasification unit 3-39 mmscfd (PLN)

PLTG Sorong 30 MW (2018)

PLTG Sorong 20 MW (2019)

PLTMG Sorong 50 MW (2025)

MPP Manokwari 20 MW (2018)

PLTMG Manokwari 20 MW (2019)

PLTMG Manokwari 20 MW (2024))

MPP Nabire 20 MW (2017)

PLTG/MG Nabire 2 10 MW (2019)

PLTMG 10 MW (2019)

PLTMG Biak 35 MW (2018)

PLTMG Biak 2 20 MW (2019)

MPP Jayapura 50 MW (2017)

PLTMG Jayapura Peaker 40 MW (2019)

PLTMG Jayapura 50 MW (2020)

30k

Tangguh LNG

Gas Supply:

Tangguh – Sorong – Manokwari – Nabire – Jayapura –

Biak – Tangguh

LNG Carrier Route:

▪ LNG storage and regasification facilities

▪ Jetty/mooring

▪ Pipe

Scope of Work

46.7 BBTUD

Total Gas Demand:

2019 - 2020

COD Target:

▪ FEED has been finalized

▪ Currently in tender process

Latest Status:

NO. LOCATION LNG PLANT TYPEAPPROXIMATELY CAPACITY

LNG TANK (m3)REMARKS

1 Sorong LNG Receiving Terminal Land Based 13,000 Include Jetty and piping connections

2 Manokwari LNG Receiving Terminal Land Based 7,000 Include Jetty and piping connections

3 Nabire LNG Receiving Terminal Land Based 6,000 Include Jetty and piping connections

4 Biak FSRU FSRU 4,000 Include Jetty and pipelines

5 Jayapura FSRU FSRU 15,000 Include Jetty and pipelines

TOTAL 45,000

Abadi Field (Masela Block) Development

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• This upstream oil and gas project is operated by

Inpex Masela Ltd.

• The field has depths of ~800 m below sea level,

and has the largest developed gas reserve in

Indonesia in deepwater.

• An LNG plant of 9.5 MTPA will be built to

process the gas production, and an additional

150 MMSCFD of pipeline gas will be allocated.

Location Maluku

Investment Value US$ 22.3 billion

Funding Scheme Private (Production Sharing Contract

with Inpex Masela, Ltd.)

Project Owner Ministry of Energy and Mineral

Resources

Construction 2018 (POD revision);

2022 (Construction)

Operation Target 2027

Description Latest Status

• Field data gathering (Pre-FEED Survey),

environmental assessment (AMDAL), and technical

studies is expected to be completed by September

2018.

• The Plan of Development (POD) is expected to be

ready for approval by Minister of Energy and Mineral

Resources by end of 2018.

Development of Gendalo, Maha, Gandang, Gehem, and Bangka Fields (Indonesia

Deepwater Development Project/IDD)

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• The Cekungan Kutai Deepwater Plan of

Development (POD) I has been approved in

October 2018, which includes development of

five fields (Gendalo, Maha, Gandang, Gahem

and Bangka) located in the Production Sharing

Contract area of Makassar Strait, Ganal, Rapak,

and Muara Bakau.

• Production is estimated to be a total of 2.7 TCF

gas, and 52 million barrels of condensate.

Location East Kalimantan

Investment Value US$ 9.24 billion

Funding Scheme Private (Production Sharing Contract

with Chevron Indonesia)

Project Owner Ministry of Energy and Mineral

Resources

Construction Bangka: June 2013

Gendalo – Gehem: under reschedule

Operation Target Bangka: August 2016

Gendalo – Gehem: under reschedule

Description Latest Status

• Bangka field has begun production of gas since 2016.

• Pre-FEED for Gendalo, Gandang, Maha, and Gehem

fields are being developed since December 2017.

• Plan of Development (POD) for the aforementioned fields

is expected to be ready for Minister of Energy and Mineral

Resources approval by end of 2018.

Construction of Household Natural Gas Network

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• Construction of natural gas networks for

households in 9 cities/regencies in Sumatera,

Kalimantan, and Java.

Location Sumatera, Kalimantan, Java

Investment Value US$ 196 million

Funding Scheme State Budget (APBN)

Project Owner Ministry of Energy and Mineral

Resources

Construction 2017

Operation Target 2019

Description Latest Status

• Construction progress in the following cities are as

follows:

• Musi Banyuasin: 100%

• Muara Enim: 100%

• Pali: 63%

• Pekanbaru: 100%

• Bontang: 30%

• Bandar Lampung: 43%

• Mojokerto: 100%

• Samarinda: 17.20%

• Kemayoran PUPR

housing: 100%

As per 2017, the target of gaspipeline set by the Ministry of Energy and Mineral

Resources has a realization rate of 20,7%

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Realization Target

Realization vs Target

Renstra 2015-2019

2015-2017

2009-2014

1,140,900 SR

146,485 SR

89,440 SR

Source: Ministry of Energy and Mineral Resources

TERIMA KASIHSekretariat – Komite Percepatan Penyediaan

Infrastruktur Prioritas (KPPIP)

Menara Merdeka,8th Floor - Jalan Budi Kemuliaan I No. 2

Jakarta 10110, Indonesia

T. +62 21 2957 3771, +62 21 2957 3772

F. +62 21 2957 3773