MARKET

OVERVIEW
LNG
CENTRAL
JAVA
 MARKET OVERVIEW

Jawa Tengah, tahun 2012 – 2025 mengalami defisit pasokan

gas bumi. Tahun 2019, nilai defisit mencapai -256 mmscfd.
Hal ini mencerminkan bahwa kebutuhan energi gas di Jawa
Tengah sangat tinggi. Dari sudut pandang supply energi gas
bumi, defisit ini dipandang sebagai peluang untuk
memenuhi kebutuhan (Demand) energi gas.

Total kebutuhan energi untuk Sektor Industri Jawa Tengah

Sebesar 63 MMSCFD. Saat Ini terdapat + 115 Pelanggan
Industri dengan kebutuhan volume mencapai 23 MMSCFD
yang berpotensi untuk beralih menggunakan Gas Bumi.
ABOUT NATURAL GAS
 POTENTIAL MARKET
CENTRAL JAVA

NO CUSTOMER LINE EXISTING VOLUME

BUSINESS ENERGY MMSCFD

1 PT XXX F&B CNG 1,0

2 PT XXX F&B CNG 0,8

3 PT XXX CERAMIC CNG 0,8

4 PT XXX STEEL CNG 0,6

5 PT XXX F&B CNG 1,0

6 PT XXX F&B CNG 0,8

TOTAL 5,0
 ISO TANK REQUIREMENT

TOTAL TOTAL ISOTANK ISOTANK

No. DESCRIPTION CUSTOMER VOLUME 20 FEET 40FEET
MMSCFD UNIT UNIT

Customer – B 9
1 4 3 3
0.6 to 0.9 MMSCFD

Customer – C
2 2 2 6
1.0 to 1.5 MMSCFD

TOTAL 6 5 3 15
OUR PLAN
 OUR ANALYSIS
SWOT ANALYSIS - COMPARE TO CNG
STRENGTH WEAKNESS
1 The 1st LNG Supply Chain in Central Java 1 Insignificant price difference with CNG price (CNG price $ 10,5 - 11 / MMBTU)
Same supply characteristics, mobile gas feature (virtual pipeline method), using
2 Easy to deliver and transport due to the availability of toll road 2
auxiliary equipment to process and deliver gas to the end user
Expensive investment/ Capex, very complex operations and infrastructures which
3 Moda fleet transport using Iso Tanks 20 and 40 feet 3
will affect LNG selling price at the end user

The comparison of capex costs between LNG and CNG is quite significant, the
4 Iso Tank volume capacity of 20 ft for 0,45 MMSCF and 40 ft for 0,9 MMSCF 4
CNG capex costs are much cheaper
LNG selling price mostly depends on the price of the gas source, liquefaction
5 LNG storage tank at customer premise - for gas volume usage above 1 MMSCFD 5
process plant, transport cost and lng Regas station facilities
Iso Tank, Regas Station with standby Operator and Technician and Metering system will
6 be installed at customer premise; at Customer premise, Location and space area for
regas station along with electricity and water facilities will be prepared by the customer

7 Guarantee of continuity supply for 24 hours and 7 days a week

8 Has a fix and competitive price compare to others

OPPORTUNITY THREATS
Existing CNG suppliers who have the mother station and operational at Central
To secure customers with small volume, using integrated and smaller LNG delivery
1 1 Java - CNG MS Blora (by PTGN) and in the future CNG MS Purwodadi (by EHK
systems. LNG Microbulk for commercial sectors - it's a concept LNG for substituted LPG
and BBG)
To develop new markets with using an LNG Satellite Station for Industrial Cluster & Entry of new LNG competitors into the Central Java and West market - Pertagas
2 2
Independent Power Plant (in house) Niaga, PGN and privat companies
To supply FOB customers - some of the FOB customers mainly are CNG supplier which
3 3 Lack of Government enforcement on LNG rules, regulations and licensing
convert their CNG equipments to LNG
Gas pipeline distribution network that began to exist throughout the eastern region
4
of Java.
The construction of the Cirebon-Semarang (Cirsem) gas transline pipeline, phase
5 1, Semarang to Batang is in progress, the gas source comes from the open access
gas pipeline in East Java
6 Depreciation of IDR against the USD reduce the profitability of the business
 LNG EXPECTATION PRICE

LNG LNG
GAS LNG
PRODUCTION LIQUEFACTION DISTRIBUTION -REGAS STATION-
-K3S- PLANT -TRUCKING-

USD 3.80 USD 4.20 USD 1.20 USD 0.80

LNG LANDED PRICE

at
CENTRAL JAVA

USD 10.00 / MMBTU

 LNG SELLING PRICE

• USD 10.00
LNG LANDED PRICE

LNG SELLING PRICE • USD 11.25

END USER

MARGIN • USD 1.25


To support the energy/ gas demand for
industrial sectors in Central Java with the
high value of services of supply chain and
competitive price
Conclusion
Business conditions are currently
declining due to the global economic
crisis, especially for the textile industry
sector, so that the target market potential
is mostly in the food and beverage
industry whose condition is still stable.
CONCLUSION
In terms of LNG prices it should be fixed
and competitive with CNG prices, because
the user/ customer expectations of prices
will be the major concern and issues.
Most industries in Central Java have used
gas/ CNG since 2013-2014 which was
supplied from East Java. for industries
with small energy use (below 100 mmbtu
per day) currently still use solar and LPG.