Indonesia’s Future Potential for

LNG Carriers & FSRU’s

by Ari Rahim
PT. Khatulistiwa Mandala Energi

LNG Carrier & FSRU Conference 2013

Grand Hyatt Shanghai, China
18-19 June 2014
Disclaimer:
The information contained in our
presentation is intended solely for
your personal reference. In addition,
such information contains
projections and forward‐looking
statements that reflect the Company’s
current views with respect to future
events and
financial performance. These views are
based on assumptions subject to
various risk. 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 differ materially from
those projected.
 Content :

1. Introduction

2. Current situation in Indonesia

3. Natural Gas Demand & Supply

4. Electricity, Existing & Development

5. Indonesia’s FSRU Market Potential

6. The Planning Updates

7. The Opportunities & The Plan

8. The Project Summary

(1) Introduction
• The outlook for long-term gas demand remains high. Overall
global Capex on LNG facilities in the World for the 2010-2014
period is forecast to total over more than $108 billion - a growth
of 10% relative to the 2005-2009 period.

• LNG facilities will be a great business in this decade.

• The current global situation that the LNG industry has

experienced significant growth in recent years and has
featured:
– Large-scale demand growth
– Emerging new supply sources
– Emerging new import markets
– Increased investment in LNG infrastructure
– Increased contract flexibility
– Speculative LNG carrier newbuilding orders
– Continued increase in average vessel size
– Development of containment and propulsion systems
(2) Current situation in Indonesia
• Indonesian geography and demography :
Indonesia is an archipelago in Southeast Asia consisting of 17,000 islands (6,000
inhabited) and straddling the equator. The largest islands are Sumatra, Java (the
most populous), Bali, Kalimantan (Indonesia's part of Borneo), Sulawesi
(Celebes), the Nusa Tenggara islands, the Moluccas Islands, and Irian Jaya (also
called West Papua), Land area: 699,548 sq mi (1,811,831 sq km); total area:
741,096 sq mi (1,919,440 sq km). Population (2014 est.): 251 million (growth
rate: 1.04%); birth rate: 17.76/1000; mortality rate: 26.99/1000;

• Indonesia’s economic growth

Has grown by more than 6 percent since 2010, expand by 6.5% in year 2011, by
6.3% in year 2012, 6.5% in 2013 and may between 5.7 to 6.0 percent in this year
(2014) projected by Bank Indonesian (BI), it’s mean that more energy is going to
be needed to support the higher growth
Current situation in Indonesia
About Indonesian Gas :

1. Indonesian’s Proven gas reserve about :

107.35 trillion standard cubic feet (TSCF) in year 2011

2. Indonesian Gas production : 8,922 mmscfd in year 2011

3. Gas domestic demand in Indonesia : 4,277 mmscfd in year 2011

(its mean that able to generate 56 GW)

4. Average Domestic allocation 45% (predicted to grow by 5% per year) and

Commitment for export 55%.

5. Indonesian lack of LNG Storages and Re-gasification.

6. Indonesia faced tremendous challenges, both Internal and External, for the
future development of its Gas and LNG Refining Industry

7. The Internal Challenges Include the additional proven Gas reserve for LNG
refining capacity, Domestic Receiving Facilities and capital availability.

8. The External challenge is mainly the participation of Foreign Investment in

the process of high-tech Indonesia’s LNG Refining Industry for Natuna Gas
field, and Indonesia’s LNG supply security in the future.
Gas Domestic Utilization
Indonesia’s needs for LNG Carriers
Indonesia’s needs for LNG Carriers depend on the Indonesian
Natural Gas (NG) Demand and Supply
The year was also the first for decades in which domestic consumption
equal more than half of output (51%): export, mainly in liquefied natural
gas (LNG) form, had hitherto predominated.
Indonesia’s need for LNG Carrier
• Depend on increasing of output capacity
production of LNG from the gas field in
Indonesia
(currently only Tangguh gas field develop new train/Train 3 in
Papua, Indonesia)

• We think, ideally required 2 new LNG

Carriers for transporting the output.
 Gas Infrastructure in Indonesia
Despite substantial gas discovery and increasing production
infrastructure remains a challenge for the country.
Here are the key points:

• Based on Indonesia's Gas Balance 2011-2025, North Sumatra, West

Java, Central/ East Java will require additional gas supply from other
areas. FSRU and pipeline are being developed for this
• Unlike in Java and Sumatra, construction of extensive gas transmission
pipelines in eastern Indonesia is not feasible as the relatively low gas
demand does not justify the high CAPEX
• Gas pipeline networks are not well established in eastern Indonesia,
LNG is the most strategic solution to balance the supply-demand gap in
respect to geographical condition and distance between gas supply to
demand points across the country
• Due to marginal demand in the range 3 to 30 MMSCFD in the eastern
part of Indonesia, mini/ small scale LNG plant is the most suited and
efficient way for gas distribution

Gas as Cheaper energy, Clean energy, Saving energy and

integrated with the Power Plant are no longer an option…
it’s a must !.
(3) Natural Gas Demand & Supply
Global Natural Gas (NG) Demand

• Global energy demand will be about 30 percent higher in 2040

compared to 2010, - as economic output more than doubles and prosperity
expands across a world whose population will grow to nearly 9 billion people.

• Natural gas will grow fast enough to overtake coal for the number-two
position behind oil. Demand for natural gas will rise by more than 60
percent through 2040. - For both oil and natural gas, an increasing share of
global supply will come from unconventional sources such as those produced
from shale formations.

• Demand for LNG for the next 5 years is expected to remain strong as
evidenced by several countries advancing plans to begin to import
LNG. - In Latin America, Southeast Asia and the Middle East, importers are
emerging quickly, as floating re-gasification terminals allow them to shorten the
time required to receive cargoes.

• LNG trade volumes are forecast to increase by over 180% by 2020

and by approximately 250% by 2030. - The LNG sector is in a period of
large-scale expansion.

• The LNG Industry and LNG Infrastructures still will be a great

business
 Natural Gas Demand & Supply
For Example; Jakarta City (capital of Indonesia) NG Demand & Supply

Estimated additional gas from new local fields is as follows :

1. Pager Dewa, South Sumatera (proven reserve...TCF) flowing 500 mmscfd
2. CNOOC SES Field (400 BCF) flowing 50 mmscfd
3. BP/NWJ Field (700 BCF) flowing 100 mmscfd
4. Pertamina West Java flowing 135 mmscfd
5. Others West Java flowing 15 mmscfd
6. West Java FSRU flowing 150 mmscfd
Total Available of Gas 950 mmscfd

Meanwhile, estimated gas demand for end user and buyer is as follows :
1. PLN – PLTGU Muara Tawar 500 mmscfd
2. PLN – PLTGU Tanjung Priuk 500 mmscfd
3. PLN – PLTGU Muara Karang 300 mmscfd
4. PLN – PLTGU Marunda 300 mmscfd
5. Industrial Estate at West Java 500 mmscfd
6. Industrial Estate at Banten 500 mmscfd
7. New Gas Power Plant 800 MW (planned in near Jakarta) 150 mmscfd
Total Estimated Demand 2750 mmscfd

Base on the above data, gas shortage in this area is 1800 mmscfd, its mean
that Indonesia now need to import and its mean that any opportunities for
LNG Receiving And Re-gasification Terminal project, or FSRU (Floating
Storage and Re-gasification Unit).
Current situation in Indonesia
About Indonesian Electricity :

1. Indonesia government will always planning to increase the electrification

ratio, now only 71.3 percent (slightly above the government target of 70.4
percent) of the 237 million people of Indonesia can enjoy electricity
meanwhile the growth of supply only about 9 – 10% per year, ideally
supply about 4000 – 5000 MW peryear

2. Indonesia have problem with the subsidy of electricity, In year 2010

electricity subsidies about Rp. 57.6 Trillion and increasing in 2011 Rp.90.4
Trillion (USD 9.5 Billion) and in 2012 about Rp. 89.1 Trillion (USD 9.4
Billion).

3. Continue subsidy every year or stopped is hard decision by government,

the solution are; Increasing electricity price step by step and by coal and oil
to gas replacement program in the power plants.

4. Government calculation suggest that the state power firm demand from the
state owned company PT. Perusahaan Listrik Negara (PT. PLN) for gas in
2010 runs to 2432 mmscfd with actual supply at only 1471 mmscfd. The
deficit will be even higher in 2011 and 2012, exceeding 1100 mmscfd.

5. PT. PLN Persero have been planning to expand the capacity by 10,000 MW
Phase I and 17,000 Phase II Program, as explain in his RUPTL/ Rencana
Usaha Penyediaan Tenaga Listrik (Power Supply Business Plan) 2011 –
2020.
Current situation in Indonesia
And What The Next ?

1. Indonesia Assuming the energy needs grow at conservative rate 7%,

Indonesia’s energy demand will reach 8 million barrel of oil equivalent per
day (boepd) in 2025, where will we get supplies from? And if the oil price
still increase every year how biggest the subsidy should government paid ?.

2. PT. PLN have urgent plan to build Gas Fired Power Plan 800 MW for
Jakarta area in 2015 – 2018. This plan still possible for IPP or by Public
Private Partnership scheme and starting immediately is more suitable.

3. Meanwhile, domestic gas demand increase sharply, but lack of Receiving

Facility especially at Java Island as the largest gas users

4. In the year 2025 utilization of gas in Indonesian Energy Mix will be 30%
from 20% in year 2010, it mean that required terminal and re-gasification
facilities.

5. Indonesian government planned to speed up and support the development

of infrastructure facilities nationwide and boost the capacity of domestic gas
industry because larger gas supply for domestic demands would need more
infrastructures.

6. The combination between gas infrastructures and gas power plant will be a
great opportunity in Indonesia at the moment and the next decade.
(4) Electricity, Existing &
Development
Electricity Existing Installed Capacity in Indonesia
• In year 2011, existing installed capacity : 37.2 GW
(by PT.PLN: 29.2 GW and by IPP: 8 GW) and predicted Total new additional
generation capacity by 2020 about 55.34 GW
(by PLN: 31 MW & by IPP: 24 MW), average about 5.500 MW/year

New Additional Power Plant Plan (PT. PLN + IPP)

• New Additional Power Plants to 2020 about 55,345 MW (by 57% PLN’s)
detail : by CFPP: 35,573.MW, by Hydro : 5,723 MW, by GeoPP : 6,247 MW,
by CCPP : 3,263 MW and by GTPP : 4,093 M
Electricity, Existing & Development
Growing Electricity Demand and Reduce Subsidy in Indonesia
• PT. PLN (state owned company) as the main player should anticipate
the electricity demand grows in Indonesia about 9% to 10% per year
and by 2020, 74% of demand still be in Java Bali Region.

• In the other hand that The government should reduce subsidy of

electricity year by year in Indonesia
Electricity subsidies in Indonesia

Year Subsidy in Rp If in USD

2010 57.6 trillion 6.1 billion
2011 90.4 trillion 9.5 billion
2012 89.1 trillion 9.4 billion
Electricity, Existing & Development
Power Plant Development for Jakarta City in 2015
• In fact, supply of gas for electricity, fertilizer and industrial areas of DKI
Jakarta province and West Java province as the biggest than other
area in Indonesia

• And in the next 2015 PT. PLN have plan to build gas fired power plant
for 800 MW near Jakarta to meet the urgent need for Jakarta City.

PT.PLN Power Plant Development Plan for Jakarta Area

No Owner Type Project Name Capacity COD Status Finance
by

1. PLN Gas & Muara Karang Rep 210 MW 2011 On going JBIC
Steam Block 2
2. PLN Gas & Priok Extention Block 3 743 MW 2012 On going JBIC
Steam
3. PLN Gas & Muara Karang/ Priok 800 MW 2015 Plan Plan
Steam
TOTAL 1.753 MW

• According to the calculation of PLN, the principal cost of supplying

electricity if using gas between Rp. 1000 – Rp. 1500 per kWh
If using fuel Rp. 2500 – Rp. 3000 per kWh.
(Current Currency 1 USD = Rp. 9,600 – Rp. 9.900).
Electricity, Existing & Development
Industrial Sector Gas Requirements in Jakarta Area
• In year 2012 Indonesian industrial sector required 2.096 mmscfd, about
1.058 mmscfd will utilized for energy sources, PT. PGN was committed
to supply only 563 mmscfd.

• In this year 2013 requirements projected 2.182 mmscfd and in next

year 2014 about 2.233 mmscfd.

• Jakarta area consume about 25% from the National need.

Indonesian Industrial Sector Requirements

Year Requirement (mmscfd) Supply by Supply (mmscfd)
2012 2.096 PT. PGN 563
2013 2.182 PT. PGN 563
2014 2.233 PT. PGN 563

• Base on the above data, gas shortage in Jakarta about 1800 mmcfd,
its mean that Indonesia now need to import even the Government have
plan in this year to allocate LNG by 27 cargo (for Jakarta starting 2013
to 2025 from domestic allocation. (1 cargo = 125,000 metric ton LNG)

• The current situation explain that any opportunities for

Investment of LNG Receiving & Re-gasification Terminal or FSRU
Project and Gas Power Plant in Jakarta.
(5) Indonesia’s FSRU Market Potential
(Basic Plan)
Indonesia’s FSRU Market Potential
(Revised Plan)
 Indonesia’s FSRU Market Potential

No Name of FSRU and Location Capacity Status

The owner

1. West Java FSRU Jakarta Bay, 400 mmscfd Operated May 2012
By PT. Nusantara Regas Jakarta Province

(PT. Pertamina 60% and PT. PGN 40%)

Under Construction &

2. Lampung FSRU Lampung, 240 mmscfd Completed July 2014
By PT. PGN Lampung Province

( PT. PGN 100%)

3. Central-East Java FSRU Semarang, Central 400 mmscfd Planned 2013 (FS)
By PT. Pertamina Java Province

(PT. Pertamina 100%)

4 Cilacap FSRU Cilacap, 100 mmscfd Planned 2013 (FS)

By PT. Pertamina Central Java Province

(PT. Pertamina 100%)

5 Mandala FSRU Bekasi, 400 mmscfd Planned 2013 (FS)

By PT. Khatulistiwa Mandala Energi West Java Province

(PT. KME 70% & Strategic Partners 30%)

Indonesia’s FSRU Market Potential
• Actually demand of FSRU depend on the
utilization of NG and the growth of NG demand
• Demand of NG in Indonesia still growth every year
because :
1. NG is a clean energy for reduce carbon
emmission
2. PT. PLN will replace oil and coal to using NG in
their existing steam power plant and the next
development for reduce subsidy of electricity
(USD 10 Billion/year)
Indonesia’s FSRU Market Potential
3. The growth of electricity in Indonesia (around 9-10%/ year)
push up the PLN and IPP to develop
new power plant generally designed for gas power
plant.
- Phase I (2004 – 2009) 10.000 MW, already on grid 7000 MW
- Phase II (2009 – 2014) 17.000 MW
4. The Industrial gas demand in Indonesia also still growth
5. Others consideration :
- Australia will overtaking Qatar as No. 1 gas exporter.
- Increasing development of shale gas in the world
- New gas field will explore in Africa
Indonesia’s FSRU Market Potential

• We assume that the shortage of

electricity in the current in Indonesia
around 20,000 MW and required 5 – 8
New FSRU
• - if 1000 MW required 200 mmscfd gas
• - if a FSRU (cap. 400 mmscfd) able to generate 2000 MW
• - for 20,000 MW required 10 new FSRU (cap. 400 mmscfd)
 (6) The Planning Updates
Existing and Planned Storages and Re-gasification in Indonesia :

Regasification Terminals will be required to receive the LNG, but three are already
planned, all of which are the floating variety and due to come on-stream by end 2011.

1. West Java FSRU will serving Jakarta and especially the 720 MW Muara Karang Power
Plant in the north of the Capital, will be a subject of a 60 : 40 JV between Pertamina and
PGN agree in April 2010. The West Java FSRU is expected eventually to reach 3 mmta.

2. PT. Pertamina will build re-gasification facility at Arun Aceh and whose customers will
include PLN’s Medan Plant, FSRU in Central Java 400 mmscfd (Semarang) and Cilacap
FSRU for 100 mmscfd ,(PT. Pertamina 100%)

3. State gas company Perusahaan Gas Negara (PT. PGN) will be responsible for a 1.5 – 2
mmtpa FSRU in Lampung (Sumatera), will operated July 2014

4. Another, in West Java, with 400 mmscfd capacity, by PT. Khatulistiwa Mandala Energi
(70%) and their strategic partners (30%)
Basic FSRU Project Structures

Indonesia’s policies, partnership and process

to develop an FSRU terminal available for
structures as follows :

> Fully integrated structure

LNG producer/supplier owns and operates FSRU and sells re-
gasified LNG

> Merchant structure

Charterer of FSRU unit buys LNG from supplier(s) and sells re-
gasified LNG

> Tolling structure

LNG supplier/importer pays FSRU owner a service
fee to receive, store, re-gasify and redeliver re-
gasified LNG for on-sale
Ref.: King & Spalding
(7) The Opportunities & The Plan

Though the company (PLN) was targeting to reduce the portion of

coal and fuel for electricity generation by oil to gas conversion
program for reduce the subsidy.

The target was of course merely a dream if the allocation of gas to

Electricity is still uncertain.

It is ironic, in the midst of National bundance of gas reserves, PLN's

gas and electricity crisis cause limited gas allocation, domestic gas
price driven by government and lack of infrastructures (storage & re-
gasification)

The Other opportunities besides the pipeline as LNG infrastructure in

Iindonesia is LNG Re-gasification Terminal & Receiving or FSRU and
Power Plant Project,
 The Opportunities & The Plan

PT. Khatulistiwa Mandala Energi have plan to build FSRU (Floating

Storage and Re-gasification Unit) integrated with 800 MW Gas Fired
Power Plant in near Jakarta (Marunda Area)

The objective of the Project are ; to build FSRU integrated with 800
MW Gas Power Plant in Jakarta area by produce 400 MMCFD gas
from imported LNG, supply to our 800 (4 X 200) MW Power Plant (will
consume about 150 mmscfd) and the balance about 250 mmscfd for
sale to the power plant, we will sell out to PLN (PT. Perusahaan
Listrik Negara), also for supply gas to Industrial Estate and
Household in Jakarta area through by PT. PGN (PT. Perusahaan Gas
Negara/ State Owned Gas Company)

THE GREAT IDEA TO MAKE IT INTEGRATED

WITH POWER PLANT
The Opportunities & The Plan
Figure of The Essential Element of The LNG Supply Chain
 The Opportunities & The Plan
Floating LNG Terminal (FSRU) Overview
 The Opportunities & The Plan
Why Floating Storage and Regasification Unit (FSRU):

The onboard regasification of LNG offers the opportunity to deliver

natural gas to new markets which do not have onshore terminals at
their disposal. The lead time for a floating regas solution is shorter than
for a land based terminal. While a land based terminal require space
and access to harbours and traffic lanes, that may already be
congested and provide an obstacle for the LNG carriers, an offshore
based DWP can be located away from major shipping lanes and will
only require a small area onshore for connection to the gas distribution
network or the end user, or alternatively the re-gasification vessels can
be moored to a separate existing jetty and receive the LNG through
ship-to-ship transfer.
Floating re-gasification solutions are also very flexible as the vessel
can be relocated or used as a conventional LNG carrier and operate in
any market.
 The Opportunities & The Plan

LNG FSRU Philosophy:

•Low CAPEX and OPEX

•Operating location: inside or outside 12 NM limit
•Flag: National or International
•Building at shipyards world wide
•Design, build and operate as LNG Vessel or as offshore unit
•Flexible Regas capacity 0.5 – 1.5 bscuf/d
•40 years vessel life (25 years for equipment)
•Mooring feasible in wide range of water depths (25-100m)
•STL buoy mooring and riser connection (APL)
•Unitised re-gas plant on deck (HKSE)
•Side by side mooring of LNG supply vessel – heading control
•Disconnect and sail away from hurricanes and/or for dry-docking
 The Opportunities & The Plan

Advantages of a FSRU:

• Lower port management & maintenance

• Replacement for mini LNG Terminal
• Environmentally friendly
• Easier to get approval from local authorities
• Replacing existing “high” emission solutions
• More economic than on-shore solution
• Shorter start-up & construction time
• Particular for conversion solutions
• Bridging solution for smaller volumes
• Flexible, can be relocated, can trade as a vessel
• Can be shuttle (SRV), stationary, moored offshore or
dockside
 The Opportunities & The Plan

The Scope of Project

In general the project will be two phase as follows :

First Phase:
Floating Storage and Re-gasification Unit (FSRU) with :

Length overall​ : 290.00 m​

Breadth Moulded​ : 46.00 m​
Service speed​ : 18 knots​
Storage volume​ : 170 000 m3​
Re-gas capacity : 400 mscf/d​
Initial Investment Cost : USD 500 million (including opex)

Second Phase
Gas Fired Power Plant (Combined Cycle Gas Turbine/CCGT)
by 2 x 400 MW
Initial Investment Cost : USD 1000 million (including opex)
 The Opportunities & The Plan

The Scope of Project

In general the project will be two phase as follows :

First Phase :
Floating Storage and
Re-gasification Unit (FSRU) with :

Length overall​ : 290.00 m​

Breadth Moulded​ : 46.00 m​
Service speed​ : 18 knots​
Storage volume​ : 170 000 m3​
Regas capacity : 400 mscf/d​
Initial Investment Cost :
USD 500 million (including opex)
 The Opportunities & The Plan

The Scope of Project

In general the project will be two phase as follows :

Second Phase :
Gas Fired Power Plant
(Combined Cycle Gas Turbine/CCGT)
by 2 x 400 MW
Initial Investment Cost :
USD 1000 million (including opex)
 The Opportunities & The Plan

THE JAKARTA 400 MMSCFD FSRU INTEGRATED WITH

800 MW GAS POWER PLANT PROFILE
1 EPC CONTRACTOR ● NOT DECIDED YET
2 CLIENT  PT.KHATULISTIWA MANDALA ENERGY.
3 LOCATION  DKI JAKARTA.
4 SCHEDULE  START ON 2015 AND COMPLETES 2017
5 PROJECT VALUE  US $ = 1,500 MILLION (including OPEX)
 FSRU ABOUT US $ 500 MILLION AND POWER PLANT ABOUT US
$1000 MILLION
6 EPC ● A FSRU WITH STORAGE VOLUME 170,000 M3 AND
SCOPE OF WORK REGASIFICATION CAPACITY 400 MMSCFD
A MINIMUM WATER DEPTH OF 56 FT ( 19 M) IS
REQUIRED TO ALLOW SAFE TANKER BERTHING
AND TRANSFER OPERATIONS SIDE BY SIDE.
● SUBSEA PIPE LINE TO ONSHORE GAS POWER
PLANT.
● 400 MM SCFD REGASIFICATION AND SENDOUT.
● INTEGRATED WITH 800 MW GAS FIRED POWER
PLANT AND GAS DISTRIBUTION FACILITY
 The Opportunities & The Plan

The Project Location at Marunda, between Jakarta and

Bekasi Area, West Java – Indonesia
(8) The Project Summary
The Agreements
To run this project should have 6 agreements ;

1. Financing Agreement
2. Gas Supply Agreement
3. Offtaker or
Gas Sale Agreement
(GSA)
4. Purchase Power Agreement
(PPA)
5. EPC Agreement
6. Transporting Agreement
The Project Summary
The Economic parameter which used as calculation basis as follows :
1. Project Life Time : 25 Years
2. Construction Period : 24 Months
3. Capacity : First Year Is 50% On Design Cap.
4. IRR : 23%
5. NPV Discount Rate : 10 %
6. Escalation : The Price of LNG JCC formula.
7. Depreciation : 25 Yrs (Straight Line 5.0 % per Year).
8. Corporate Tax : 10 %
9. Capacity /Day : 400 MMCFD
10. Cost of FSRU : US $ 2 /MMBTU
11. Total Initial Investment Cost : US $ 1,500 MM *)
With description as follows :
CAPEX : US$ 1,350 MM
1. FSRU (400 mmscfd) : US$ 410 MM*)
2. Gas Powerplant (800 MW) : US$ 800 MM
3. Utility (10%xUSD 800MM) : US$ 80 MM
4. Subsea pipeline (5%xUSD 400 MM) : US$ 20 MM
5. Public Facility (5%xUSD 800 MM) : US$ 40 MM

OPEX : US$ 110 MM

Tax : US$ 15 MM
Escalation/Inflation : US$ 25 MM

Note :
1. The detail design and bill of quantity will provide by EPC Contractor
2. Assuming that Price of LNG is USD 13 - 16/mbtu
3. Assuming that Price of electricity is USD 10 – 15 cen/ kwh
 The Project Summary
The Project Financing Models
• Alternative #1, 10% - 30% Private Equity Placement (PEP)
Private Equity Placement (PEP) for 10% - 30% from the total amount of the
investment (USD 1.5 Billion) and we will furnish it by debt loan from our others
financial institution sources such as Financial Institution such as Bank or
Investment Bank (70% - 90%)

The Private Equity Placement (PEP) Investor will take share 20% - 40% in our
SPV (Special Purpose Vehicle) and we will have 60% - 80%.

The loan (70% - 90%) will support by :

1. Financial Institution (Bank or Investment Bank)
2. or EPC Contractor (Turnkey Multi Years base)
3. or others Private Funders

• Alternative #2, 100% Loan with Revenue Guarantee

Actually we only looking for project financing by debt loan 100% (by sindicated
loan is available) or The Private Lender will provide 100% of the project costs if
any up front cost, should be deducted from the
Guarantee of the project is the project itself and the revenue from the project or
by our company shares but after project achieve break even point, the lender
should sell out their shares to us.
The Project Summary
The Project Financing Models

• Alternative #3 Turnkey Multi-Years base payment

(for EPC Contractor only)
This alternative suitable for the EPC Contractor, we will appoint the Main EPC
Contractor for Design And Build our FSRU and Gas Power Plant with Turnkey
Multi Year (In 6/Six Year exclude Grace Period) base payment
The EPC Contractor company able to add the cost of money, interest during the
construction period and installment period in 6/six years. The Guarantee of the
project is the project itself with the revenue from the project and our SBLC.
The Project Summary
We propose the Profitable, Visible, Acceptable, Accountable
and Cleaner Energy, Floating Storage and Re-gasification Unit
(FSRU) & Gas Power Plant Project to undertake the following
tasks as the next steps in the project development:
1. Prepare A Market Study To Verify : A. The Supply / Demand of the
Gas/LNG and Electricity. B. The Projected Price of LNG , Gas and
Electricity
2. Prepare MOU with Strategic Partner/Investor and Special Purpose
Vehicle/Company
3. Prepare 2 alternatives land locations (in West Java Province)
4. Prepare all permits needed especially from BPH Migas
5. Prepare MOU with Buyers, PLN, PGN and others
6. Prepare MOU with LNG Supplier Malaysia, Australia and other
7. Prepare MOU with LNG Tankers /Ship Builders
8. Keep close to Licensors and EPC Contractor.
9. Contract with International consultant for FEED
10. Select An EPC Contractors
11. Start to Build
12. Start Up & Start to operate/ Commercial Operating
 Project
The Project Summary
Summary
The latest progress of project

We under preparing the Special Purpose Company

(SPC) in Indonesia between :
1. PT. Khatulistiwa Mandala Energi
2. Our Strategic Partners
Thank You
Thank You

Ari Rahim
e : ari.rahim@yahoo.com
m: +62 8567 588 688
Info : http://project-group.org/Ari/Gasplant.zip