pd 1.2 - ditjen migas

© DJMIGAS January 2011

MINISTRY OFMINISTRY OFMINISTRY OFMINISTRY OFMINISTRY OFMINISTRY OFMINISTRY OFMINISTRY OF

EEEEEEEE&MR&MR&MR&MR&MR&MR&MR&MR

Jakarta, 25 January 2011

MINISTRY OF ENERGY AND MINERAL RESOURCESDIRECTORATE GENERAL OF OIL AND GAS

LONGTERM INFRASTRUCTURE DEVELOPMENT PLANLONGTERM INFRASTRUCTURE DEVELOPMENT PLANTO MEET DOMESTIC GAS DEMANDTO MEET DOMESTIC GAS DEMAND

by :

Saryono HadiwidjoyoDirector of Oil and Gas Downstream Development

Delivered at:

The 5th International Indonesian Gas Conference & Exhibition




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AGENDAAGENDAAGENDAAGENDA

�� NATIONAL ENERGY POLICYNATIONAL ENERGY POLICY

�� GAS RESERVEGAS RESERVE

�� INDONESIA GAS BALANCEINDONESIA GAS BALANCE

�� GAS INFRASTRUCTUREGAS INFRASTRUCTURE

�� CONCLUSIONCONCLUSION




3333

NNNNATIONAL ENERGY POLICYATIONAL ENERGY POLICYATIONAL ENERGY POLICYATIONAL ENERGY POLICY



EEEEEEEE&MR&MR&MR&MR&MR&MR&MR&MRINDONESIAINDONESIA’’S ENERGY POLICYS ENERGY POLICY

ImproveEconomicactivities

ImproveEconomicactivities

NationalSecurityNationalSecurity

THE

RO

LE O

F EN

ERG

Y

ENER

GY

SEC

UR

ITY

PRODUCTIONEXPLORATIONPRODUCTIONPRODUCTIONEXPLORATIONEXPLORATION

CONSERVATION(PRODUCTIONOPTIMIZATION)

CONSERVATIONCONSERVATION(PRODUCTION(PRODUCTIONOPTIMIZATION)OPTIMIZATION)

DIVERSIFICATIONDIVERSIFICATIONDIVERSIFICATION

CONSERVATION(EFFICIENCY)

CONSERVATIONCONSERVATION(EFFICIENCY)(EFFICIENCY)

SUPPLY SIDEPOLICY

SUPPLY SIDEPOLICY

DEMAND SIDEPOLICY

DEMAND SIDEPOLICY

SECURITY OFSUPPLY

SECURITY OFSUPPLY

COMMUNITYAWARENESS

COMMUNITYAWARENESS

ENERGY PRICEENERGY PRICE

SHIFTIN

G PA

RA

DIG

M

DIRECTDIRECTSUBSIDYSUBSIDY

HEADS TOWARDHEADS TOWARDECONOMIC PRICEECONOMIC PRICE




TARGET OF ENERGY MIXTARGET OF ENERGY MIX(Presidential Regulation No. 5 of 2006)(Presidential Regulation No. 5 of 2006)

Gas28.57%

Coal15.34%

Oil51.66%

Geothermal1.32%

Hydro Power3.11%

Primary Energy Mix2006

Gas30%

Energy Mix 2025

Energy Elasticity < 1Energy Elasticity = 1,8

Coal 33%

Oil20%

NRE,17%

Biofuel 5%

Geothermal 5%

Biomass, Nuclear, HydroPower, Solar, Wind Power5%Liquefaction Coal 2%

NON FOSSIL ENERGY < 5% NON FOSSIL ENERGYNew & Renewable Energy : 17 %




66

ENERGY Household Transportation Industry Power Plant• Gas

� LPG √ √ √ –� CNG √ √ √ √

• Coal� Coal √ – √ √� Briquette √ – √ –� Liquefied Coal √ √ √ √� Gasified Coal – √ √ √

• Biofuel� Bio-ethanol √ √ – √

� Bio-diesel √ √ √ √

� Bio-oil √ √ √ √

• Geothermal √ – – √• Oher Renewable Energy

� Biomass √ – – √� Nuclear – – – √� Hydro – – – √� Solar √ √ – √� Wind – – – √� Coal Bed Methane (CBM) √ √ √ √� Hydrogen / Fuel Cell – √ – √� Oil Shale/Oil Sand – √ √ √� Biogenic Gas √ – – √

ENERGY DIVERSIFICATION PROGRAM




7777

GASGASGASGAS RESERVERESERVERESERVERESERVE




1.281.281.281.28

17.9017.9017.9017.90

3.703.703.703.70

51.4651.4651.4651.46

18.3318.3318.3318.33

24.3224.3224.3224.32

6.406.406.406.40

PAPUAPAPUAPAPUAPAPUA

GAS RESERVE (TSCF)GAS RESERVE (TSCF)GAS RESERVE (TSCF)GAS RESERVE (TSCF)

NATUNANATUNANATUNANATUNA

MALUKUMALUKUMALUKUMALUKU

PROVENPROVENPROVENPROVEN = 108.40 TSCF= 108.40 TSCF= 108.40 TSCF= 108.40 TSCFPOTENCIALPOTENCIALPOTENCIALPOTENCIAL = 48.74 TSCF= 48.74 TSCF= 48.74 TSCF= 48.74 TSCFTOTALTOTALTOTALTOTAL = 157.14 TSCF= 157.14 TSCF= 157.14 TSCF= 157.14 TSCF

15.2215.2215.2215.224.234.234.234.23

5.745.745.745.74NADNADNADNAD

SUMATERA UTARASUMATERA UTARASUMATERA UTARASUMATERA UTARA

SUMATERA TENGAHSUMATERA TENGAHSUMATERA TENGAHSUMATERA TENGAH

SUMATERA SELATANSUMATERA SELATANSUMATERA SELATANSUMATERA SELATAN

JAWA TIMURJAWA TIMURJAWA TIMURJAWA TIMURJAWA BARATJAWA BARATJAWA BARATJAWA BARAT

SULAWESISULAWESISULAWESISULAWESI

KALIMANTANKALIMANTANKALIMANTANKALIMANTAN

8.568.568.568.56

INDONESIA GAS RESERVEINDONESIA GAS RESERVEINDONESIA GAS RESERVEINDONESIA GAS RESERVE(STATUS : 1 JANUARI 2010)(STATUS : 1 JANUARI 2010)(STATUS : 1 JANUARI 2010)(STATUS : 1 JANUARI 2010)




PROD.9.336 BSCFD

MMSCFD (%)

PEMAKAIAN DOMESTIKPUPUK 618.5 6.6KILANG 78.1 0.8PET. KIMIA 92.4 1.0KONDENSASI 15.2 0.2LPG 57.2 0.6PGN 787.6 8.4PLN 737.0 7.9KRAKATAU STEEL 54.7 0.6INDUSTRI LAIN* 519.8 5.6PEMAKAIAN SENDIRI 1,041.7 11.2LOSSES 506.6 5.4

SUB TOTAL DOMESTIK 4,508.7 48.3

LNG 3,912.1 41.9LPG - -

GAS PIPA 915.0 9.8SUB TOTAL EKSPOR 4,827.2 51.7

T O T A L 9,335.9 100

PER

TAM

INA

1.04

5 B

SCFD

DOMESTIK48.3 %

EKSPOR51.7 %

PRODUKSI DAN PEMANFAATAN GAS BUMIPRODUKSI DAN PEMANFAATAN GAS BUMITAHUN 2010

KPS8.291 BSCFD

*) Penyaluran KKKS ke industri selain pengguna PGN




NATURAL GASNATURAL GASNATURAL GASNATURAL GAS FORDOMESTIC & EXPORT ACCORDING TO

GAS SALES AGREEMENT (GSA)(2003 – 26 Nov 2010)

NATURAL GAS UTILIZATIONNATURAL GAS UTILIZATIONNATURAL GAS UTILIZATIONNATURAL GAS UTILIZATIONBASED ON CONTRACTS (GSA)BASED ON CONTRACTS (GSA)BASED ON CONTRACTS (GSA)BASED ON CONTRACTS (GSA)

5.62 TCF26.3%

15.71 TCF73.7%

2003 2004 2005 2006 2007 2008 2009 2010*Industry 0.1 2.7 4.1 4.2 5.19 5.9 6.15 6.49Power 1.18 2.28 3.17 4.41 5.33 5.83 6.25 6.34Fertilizer 1.1 1.17 1.77 1.94 2.81 2.88 2.88 2.88Total 2.38 6.15 9.04 10.55 13.33 14.61 15.28 15.71

0

2

4

6

8

10

12

14

16

18

0

2

4

6

8

10

12

14

16

18

VOL

(TC

F)(~

100

0 T

BTU

)

VOLUME ACCUMULATION OF DOMESTICUTILIZATON BASED ON CONTRACTS

DURING 2003 – 26 Nov 2010

Source: BPMIGAS

26.3% for export to maintainexisting contract and to achieve

economical value of the fielddevelopment




PRODUKSI DAN PEMANFAATAN GAS 2010

0

2,000

4,000

6,000

8,000

10,000

MM

SCFD

Produksi 8,386.02 9,008.019,230.42 9,386.119,238.01 9,570.389,120.24 9,648.72 9,652.569,405.749,332.089,190.59 9,224.849,335.87

Penyaluran 7,008.63 7,485.577,743.88 7,863.687,663.79 8,033.857,555.99 8,058.19 8,098.877,859.377,791.637,597.30 7,679.637,787.61

Own Use 903.63 1,020.34 990.82 1,031.791,040.52 1,041.931,045.50 1,056.30 1,053.661,035.041,041.601,096.27 1,043.401,041.71

Losses 473.76 502.11 495.71 490.63 533.69 494.6 518.75 534.23 500.02 511.32 498.85 497.02 501.82 506.56

APBNP 7,526.3 7,758 7,758 7,758 7,758 7,758 7,758 7,758 7,758 7,758 7,758 7,758 7,758 7,758

Rata-Rata2009

Jan '10 Feb Mar Apr Mei Jun Jul Agt Sep Okt Nop DesRata-Rata2010



EEEEEEEE&MR&MR&MR&MR&MR&MR&MR&MR��

DOMESTIC

EXPORT

MM

SCFD

MM

SCFD



EEEEEEEE&MR&MR&MR&MR&MR&MR&MR&MROVERVIEWOVERVIEWOVERVIEWOVERVIEW

� Indonesia endowed with potential of variety energy resources conventionalas well as unconventional hydrocarbon

� Government of Indonesia is obliged to guarantee the availability of domesticfeed stock and fuel supply

� Source of gas in Indonesia located far from demand centre




1414

� Most of the gas source is far away from consumer

� Lack of gas infrastructure

� Gas utilization technologies for marginal field are underdeveloped

� Domestic gas demand is progressively increasing

� Purchasing power of most domestic consumers is still below theglobal market gas price

CHALLENGES FOR GAS DEVELOPMENT




1515

GAS for electrical powerGAS for electrical power

GASGASGASGAS UTILIZATION PLANNING

GAS for LNG

INDUSTRYINDUSTRY

CITY GASCITY GAS

CNG forCNG forTRANSPORTATIONTRANSPORTATION

GAS for another domesticGAS for another domesticconsumptionconsumption




1616

LPG FOR DOMESTIC

*) up to nov 2010 (unreconciliation number)

kilo

Litr

e G

asol

ine

Eq. (

kLSP

)

CNG FOR TRANSPORTATION

LGV/ Vigas Consumption

MTo

n pe

r Day

*) up to nov 2010 (unreconciliation number)

DOMESTIC GAS CONSUMPTION



EEEEEEEE&MR&MR&MR&MR&MR&MR&MR&MRGENERAL POLICY OF NATURAL GAS UTILIZATIONGENERAL POLICY OF NATURAL GAS UTILIZATION

1. The government gives priority to the utilization of Natural Gas for domestic needs as a mandateby law no 22/2001 on oil and gas;

2. To create a conducive investment climate to maintain the sustainability of gas supply anddevelopment of its infrastructures. This has been realized by providing a more attractive fiscalincentive;

3. Natural gas development and utilization should be based on economic principles;4. In The Case Of The Gas Reserve In The Certain Area Could Be Utilized As Of Export Or

Domestic, The Utilization Should Be Consuder Economic Principle And National Interest;5. To expand natural gas infrastructure development step by step and scheduled, according to

natural gas distribution and pipeline transmission development master plan, which is relied onnatural gas resource and natural gas utilization master plan in consumer sector;

6. Implementing of Domestic Market Obligation (DMO) for all gas producers to meet domesticneeds should be done before Plan of Development (POD);

7. In order to guarantee natural gas supply, access enhancement would be needed to obtainnatural gas from outside of the country;

8. Accelerate development of Natural Gas Infrastructure such as Gas Transmision and DistributionPipeline, LNG Receiving Terminal, and CNG Transportation in area with immense natural gasdemand;

9. Develop CBM Resources in addition to Natural Gas.




1818

a. Indonesia Natural Gas utilization prioritized for Domestic demand with considereconomic of field development;

b. Allocation for new natural gas reserved, priorities for local demand;

c. If there is an excess can be utilized to supply for other areas;

d. Domestic natural gas utilization consider of the availability of infrastructure,availability of reserve and economic of field development, the priorities are asfollow:

1. Enhanced oil recoveries;2. Fertilizer feedstock;3. Power plant, and;4. Fuel or Feedstock for Industry.

e. When there are natural gas shortage in specific area due to limited natural gasresource and infrastructure, the fulfill supply for this area, existing gas allocationcan be reallocate or swap as contingency plan.

NATURAL GAS ALOCATION POLICYNATURAL GAS ALOCATION POLICYNATURAL GAS ALOCATION POLICYNATURAL GAS ALOCATION POLICY




INDONESIA GAS BALANCE




2020

�

��

��

��

��

��

��

��

�� !"#!$%&%!� ��'%�� (%� ��)%� #!�

��"%� �!*+,��%, ��'%�� (%� ��)%� #!� ��"%� �!*+,��%,

�-�� ./ ��0��./

INDONESIA GAS BALANCEINDONESIA GAS BALANCEINDONESIA GAS BALANCEINDONESIA GAS BALANCE(after adding LNG Receiving Terminal)

(STATUS 1 APRIL 2010)M

MSC

FDFSRUWestJava

FSRU NorthSumatra

FSRU East/Central Java

ExistingSupply

ProjectSupply

Based on Indonesia Gas Balance 2010 - 2025, North Sumatra, West Java, and East/Central Java are needed additional gas supply which cannot fullfill from its areas

FSRU = Floating Storage & Regasification Unit




GAS INFRASTRUCTURE




2222

GAS INFRASTRUCTUREGAS INFRASTRUCTUREGAS INFRASTRUCTUREGAS INFRASTRUCTUREGAS INFRASTRUCTUREGAS INFRASTRUCTUREGAS INFRASTRUCTUREGAS INFRASTRUCTURE

� �� !�� " � � �� # �� " � �� $$�% �� $$�� % �� &

ARUN6.8 MTPA(6 trains) BONTANG

22.59 MTPA(8 trains)

DONGGI-SENOROLNG Plant-Planned(2 MTPA/ 1 train)

TANGGUH7,6 MTPA(2 trains)

MASELALNG Plant-Planned

(4.5 MTPA)

NATUNAIn progress Transmission pipe

(Existing)

Transmission pipe(Plan)

LNG Plant

LNG ReceivingTerminal/ FSRT*

FSRT by PGNcapacity 300

MMSCFD in 2012

FSRT by Consortium ofPGN-PERTAMINA

capacity 500 MMSCFDin 2011

FSRT by PERTAMINAcapacity 500 MMSCFD

in 2014

1 2 3

1

2

3

*) FSRT = Floating Storage and Regasification Terminal

LNG RT in 20184

4




2323

GAS INFRASTRUCTURE DEVELOPMENT PLANGAS INFRASTRUCTURE DEVELOPMENT PLANGAS INFRASTRUCTURE DEVELOPMENT PLANGAS INFRASTRUCTURE DEVELOPMENT PLANGas infrastructure development plan to improve the distribution of gas from source gas to consumers, aswell as to anticipate the possibilities gas supply from other sources:

– Based on Indonesia Gas Balance 2010 - 2025, North Sumatra, West Java, and East Java are neededadditional gas supply which cannot fulfill from its areas. LNG receiving terminal will be built in 3locations, as following:

� West Java : FSRU* by PT Nusantara Regas (JV PT Pertamina & PT PGN);cap. 3 MTPA, completion target end of year 2011

� North Sumatra : FSRU* by PGN; cap. 1,5 - 2 MTPA, completion target 2012� East Java/ Central Java : FSRU* by PERTAMINA; cap. 3 MTPA, completion

target 2013

– In order to provide clean energy and safe for households, the Government plans to build GasDistribution Networks for Household beginning in 2009.

• 2009 : Surabaya (3.311 house connection) and Palembang (2.900 house connection).• 2010 : Tarakan, Depok, Bekasi, and Sidoarjo (under construction phase).• 2011 : - Bontang, Sengkang, flats in Jabodetabek, and Sidoarjo II (plan to construction)

- Bangkalan, Jambi, Pekanbaru, and Prabumulih (plan to FEED & DEDC)• etc.

– The government plans to build the infrastructure to support the utilization of Gas for transportation.

– Plan to build Gas transmission pipeline: Gresik-Semarang, Semarang-Cirebon and Semarang-Kalimantan.

*) FSRU = Floating Storage and Regasification Unit




CONCLUSIONCONCLUSION



EEEEEEEE&MR&MR&MR&MR&MR&MR&MR&MRCONCLUSIONCONCLUSION

• Indonesia will continue its effort to find new reserves of Oil andGas through Exploration, and accelerating Oil and GasProduction;

• Indonesia will optimize gas utilization by providing sufficient gassupply for domestic use and fulfill export commitment;

• In the hike of world oil price, Indonesian Untapped oil, gas andCBM resources bring opportunity to investors in order to exploreand exploit the resources.

• Adequate gas infrastructure support is required to assure supplyand distribution.

• Investors role in infrastructure development is needed




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