INTEGRATING OFFSHORE AND ONSHORE NATURAL GAS INFRASTRUCTURES TO MARKETS

by
Danny Praditya
Director of Commerce PT. Perusahaan Gas Negara (Persero) Tbk
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.
Table of content
1. PGN and the history of Indonesia Domestic Gas Utilization
2. PGN Business Model
3. PGN Network Infrastructure – Transmission and Distribution
4. Challenges in Providing Natural Gas for Power Market
5. Challenges in Providing Natural Gas for Industrial Estate Market
6. Business Opportunity- Multi Modal Gas Supply
7. Closing Remarks
PGN and the history of Indonesia Domestic Gas Utilisation
PGN is Indonesia Gas SOE with strong commitment to increase domestic gas utilization through national strategic gas
infrastructure development and gas market initiator
FSRU Lampung
Developed
FSRU NR
The Growth of Infrastructure and Gas Utilisation in Indonesia Developed

5.0 9000

4.5 8000

4.0
SSWJ Transmission 7000

3.5 Developed
6000
3.0 Grissik – Batam
Transmission 5000
Developed
2.5
4000
2.0
3000
1.5

2000
1.0

0.5 1000

- 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pipa Gas Hilir Pipa Hulu Menjadi Hilir Konsumsi Gas Domestik Ekspor Gas
PGN Business Model
Leading Player in Indonesia Natural Gas Transmission and Distribution

PGN manages more

than 120.000 of
Indonesia domestic
gas clients. We serve
all segment of gas
user from industrial,
power plant,
commercial to
household and
transportation.
PGN Network Infrastructure – Transmission and Distribution
PGN Gas Infrastructure represent more
than 70% natural gas downstream
North Sumatera and Riau Area of Operation
Island infrastructure in Indonesia
distribution network 761 km This only covers of 30% infrastructure 1. Area Medan
required 2. Area Batam
3. Area Pekanbaru
Tarakan 4. Area Palembang
5. Area Lampung
Sorong 6. Area Cilegon
7. Area Tangerang
8. Area Jakarta
9. Area Bogor
10.Area Bekasi
11.Area Karawang
12.Area Cirebon
13.Area Semarang
14.Area Surabaya
Western Java, Lampung, Palembang East Java 15.Area Pasuruan
distribution network 2,707 km distribution network 761
16.Area Sidoarjo
km
17.Area Tarakan
18.Area Sorong
 Challenges in Providing Natural Gas for Industrial Estate Market
Bitung Bay Industrial
Landak PaluIndustrial Estate Buli Industrial Estate
Kuala Tanjung Estate
Industrial Estate
Industrial Estate Rattan, Rubber, Cacao
(agro) Based Industry Agro Industry and Smelter Ferronickel,
Aluminums Industry, Rubber Industry, CPO
and Smelter Logistic Stainless steel industry
CPO and its derivatives

Batu Licin Industrial

Ketapang Industrial Estete
Estate Bintuni Bay Industrial
Steel Industry Estate
Alumina Industry
Oil and Gas Industry
and Fertilizer

Sei Mangkei Industrial

Estate
CPO Processing
Industry
Morowali Industrial
Tanggamus Industrial Estate
Estate
Smelter Ferronickel,
Maritime Industry and Stainless steel industry
Logistics and its derivatives

Jorong Industrial Bantaeng Industrial Konawe Industrial

Estate
Downstream of Mineral
Resources (Bauxite),
Palm Oil
Sourcer: RPJMN 2015-2019
Estate Estate
Ferronickel Smelter
Industry, Stainless Steel Ferronickel Smelter
and Downstream Product Industry, Stainless Steel
and Downstream Product
Economic Growth and Rapid Electricity Demand Growth

Ref: World Bank, BI, BPS

Indonesia Continuous Economic Growth Means Continuous Energy The growth of Electricity Demand and the Indonesia energy mix for
Demand: Increase Electricity Demand Electricity Generation plan define the gas demand for electricity in
2022 will reach 440.000 Gwh
Challenges in Providing Natural Gas for Power Market

GAS RESERVE (TSCF)

PROVEN = 108.40 TSCF
POTENCIAL = 48.74 TSCF
TOTAL = 157.14 TSCF

The electricity demand is spread out through the archipelago making PLN as a gas user with multi destination requirement.
The diverse location will define the diverse infrastructure cost and PGN as National Gas company is striving its best efforts to
serve the demand.
Recommendation Multi Modal Gas Supply
To serve potential customers who have high ability to pay, low demand and located in scattered
location, PGN will use multi-moda gas transportation, this includes CNG and Mini LNG.

FSRU Lampung Mini LNG Western Mini LNG Eastern CNG Peaker

 Northern Sumatera  Bali  Lampung

 Eastern Sumatera
 Dumai  Lombok – NTB  Southern Sumatera
IPP  Southern Sumatera
 Pontianak  NTT  Bali
 Bangka – Belitung
 Bangka – Belitung  Lombok
 Pontianak
 Southern Sumatera
Moda
 CNG Trucking
 Break-Bulking  Mini LNG Ship  Mini LNG Ship
 CNG Marine

Key Recommendations
• The most promising markets which are in proximity to PGN’s planned Mini LNG terminals in Western & Eastern area and can be
supplied either through LNG trucks or via a ISO tank intermoda/LCT carrier
• Based on the gas supplies it can secure, Gagas can also examine the potential of establishing multi-moda gas supply chains to other
markets like Bali, North / Central Sumatra and Sulawesi in the future
Closing Remarks

1. Indonesian gas market still continue to grow, align with government plan to develop industrial estate and increasing
demand from power sector. Based on the National Energy Mix Policy, by 2025 natural gas is expected to take up to 30
part of total energy demand, twice of todays volume at 3800 Mmscfd.
2. To meet above target, extensive natural gas infrastructure development is a must. This include CNG, LNG receiving
terminal, FSRU, small/medium-scale LNG logistic and land based LNG trucking. Ooprtunity for technology provider and
infrastructure provider.
3. An efficient and reliable natural gas infrastructure that will serve the whole nation can only be developed through Nation
Grid Infrastructure. PGN will continuously play its role as state’s owned enterp.rise to serve the nation by propagating and
developing natural gas infrastructure.
4. Synergy between state’s owned enterprise is required to have integrated and solid infrastructure. A joint planning is
mandatory to avoid unnecessary duplication and inefficiency. Public- Private Partnership scheme is also encouraged tpo
accelerate infrastructure growth.
Thank You