Gas Infrastructure Development in Indonesia

Hendra Jaya Hendra Jaya Hendra Jaya Hendra Jaya –––– President Director President Director President Director President Director PertaminaPertaminaPertaminaPertamina Gas Gas Gas Gas

The 7th International Indonesia Gas

Conference & Exhibition, 29 Januari 2015

Domestic gas demand expected to grow at 5.2% p.a, with power and

industry sectors accounting for ~70% of demand by 2025

1,530

1,530 Fertilizers

5.2% p.a.

Refinery

City Gas

9,040

224~9567,942

224~760

CAGR

(%)

18.0

28.3

3.4

Demand growth in Indonesia by industry

MMSCFD

1

1,783 1,965 2,122

9621,180

1,890

2,5553,0081,097

1,530

Industry

Power (Grid)

Power (Captive)

202520202015

5,453

491

Source: Pertamina

4.8

1.8

9.2

70%

7,000

8,000

9,000

10,0009,0408,7848,7698,5368,322

7,942

7,1476,9586,450

5,733

MMSCFD

New Pertamina

Existing Pertamina

Existing OthersCBM

Discovered yet to be commercialized

Contracted for Exports New others - Jangkrik

New others - Krueng Mane

New others - Madura Strait

New others - Masela PSC

New others - Others

New others - IDD

However given large export commitments, domestic supply will fall short

of the demand

Domestic demand

2

0

1,000

2,000

3,000

4,000

5,000

6,0005,733

5,453

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Source: Pertamina

Deficit -78 -658-784 -74 -594 -1568 -648 -1885-1170 -2363 -2768

Given archipelago nature of Indonesia and regional mismatch in demand

and supply, there is a need to develop pipelines and LNG infrastructureMMSCFD Deficit regionSurplus region

Other

North Sumatra

Central Sumatra

Central Java

-342-283 -240

-433

-182

-471 543

267218

94

128

1,620916

910-191 -266

-411

-168

-271

-138

-205

2520152012

3Source: Pertamina

Central Sumatra

South Sumatra West Java East Java

0

-37

-122

-341

-427

-207

-232

0000

-372-175-545

-869

-278

-541-1,208

-1,524

-804

-1,091

-689

-965

-468

-592

Gas and LNG infrastructure

West Java

• MK – MT – TG

• West Java Distribution Pipe

• FSRU Jawa Barat (NR)

• FSRU Cilamaya

Central Java

• Gresik - Semarang pipe

• Central Java Regas : FSRU

Cilacap

East Java • EJGP Grati Pipe

Sumatera• Arun Receiving & Regasification

• Arun – Belawan – KIM – KEK

Pipe

East

Indonesia

• LNG KTI

• Mini LNG Plant Nunukan

Arun

Trans Sumatera

pipeline

HalmaheraSemberah Bontang

Pipeline, regas, and LNG development

Planned pipelineExisting pipeline

Existing Regas Planned Regas

LNG KTI development

Pertamina is investing heavily in regasification terminals and pipeline

infrastructure to support Indonesia’s demand

Luwuk

Donggi Senoro LNG

44Source: Pertamina

Indonesia• Mini LNG Plant Nunukan

• DS LNG

Other

infrastructure

• IPPs

• Tempino – Plaju oil pipe

Value chain

expansion

• NGL plant Sumsel (NGL Perta

Samtan)

• LPG plant Pondok Tengah

• LPG Mundu

Maximize

downstream

• CNG Transport

• CNG Industry

• City Gas

• LNG for Mining

• LNG for Vehicle

• LNG for Marine

Sourcing &

trading• LNG Trading & Sourcing

FSRU CilamayaFSRU NR

LNG KTI Bali

Halmahera

Pomalaa

Makassar

Pesanggaran

Batakan

Tanjong Batu

FSRU Cilacap

Luwuk

Support and coordination is required from various stakeholders to ensure

infrastructure ramp up can happen at a fast pace

Government

▪ Accelerate / simplify

issuance of permits and

licenses

▪ Formalize Pertamina’s

Contractors

▪ Given limitations of

domestic EPC contractors,

need to partner with

international players to add

5Source: Pertamina

▪ Formalize Pertamina’s

strategic role as gas

aggregator to ensure cost

competitive sourcing

international players to add

capacity and capability

Closing Remarks

• Indonesia’s domestic gas demand will continue to grow at 5% driven

by power and industry segments

• However, given export commitments domestic supply will fall short of

demand

• Given mismatch in demand and supply and archipelago nature of

Indonesia, developing pipelines and LNG infrastructure is critical to

meet the demand

1

2

3

6Source: Pertamina

meet the demand

• Pertamina is taking significant steps towards building infrastructure to

support Indonesia’s demand

• Support and coordination is required from various stakeholders to

ensure infrastructure ramp up can happen at a fast pace

4

5