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ACCELERATION OF

SMALL SCALE LNG SUPPLY CHAIN INFRASTRUCTURE

FOR CENTRAL AND EAST REGION OF INDONESIA

Electricity Condition of Central & East Indonesia

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• The installed capacity of power plants owned by PLN and IPP spread

across Central & Eastern Indonesia s.d. 2014 is approximately 3,842

MW , with most plants are Diesel

• Diesel Power Plant has several weakness :

1. Small engine capacity

2. High operating cost (+/- USD 0.3/kWh)

3. High emission

RUPTL PLN 2015-2024

(MW)

3

Existing Power Plant Capacities in Indonesia Central Region

439.82

752.64

342.36

62.2 6.49

1120.34

177.85

249.69 288.7

194.82 135

555

219

33 24

410

87 57

124 110

KalimantanSelatan

Kaltim andKaltara

SulawesiUtara

Gorontalo SulawesiBarat

SulawesiSelatan

SulawesiTenggara

SulawesiTengah

NTB NTT

Total Capacity (MW) Req. Additional Capacity (MW)

(Source : RUPTL PLN 2014 – 2024)

4

Natural Gas Production in Indonesia

Production of Natural Gas in Indonesia Source = SKK Migas – IPA Technical Division Presentation

• From 2002, energy in Indonesia is dominated by gas and this trend will continue in the future

• Production of natural gas in 2016 is approximately 1350 MBOEPD

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Increasing of Domestic Natural Gas Demand

• Gas allocation policy prioritizes natural gas to supply domestic market

• The prioritized segments are oil lifting, fertilizer feedstock, power plant, and industry.

• However, there is limitation of natural gas infrastructure.

Production of Natural Gas in Indonesia Source = SKK Migas – IPA Technical Division Presentation

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Limitation of Natural Gas Infrasructure

LNG Facility in Indonesia Source = Indonesian Gas Association Presentation

LNG Receiving Terminal

Location : Benoa, Bali

Capacity : 50 MMSCFD

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PLN’s Power Plant Development Plan

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COMPANY OVERVIEW

PELINDO III

“To create an efficient energy supply chain

in central and east region of Indonesia”

• PT. Pelindo Energi Logistik (PT. PEL) is a subsidiary

company of PT. Pelindo Marine Services, an affiliation of

PT. Pelindo III, which engaged in provision of energy ,

electricity and logistic.

• PT.PEL have been collaborated with PT. Indonesia Power

in LNG Receiving Terminal Project, for supplying gas to

the Dual Fuel Engine Power Plant in Pesanggaran, Bali.

VIRTUAL PIPELINE CONCEPT

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Existing route Bontang Benoa

EXAMPLE: LNG SUPPLY CHAIN AS POWER PLANT FUEL

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FSRU

Gas Pipeline

Power Plant LNG Ship

Gas Pipeline

LNG Ship Power Plant

Land Based LNG

Terminal

Gas Fuel Power Plant - Infrastructure

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LNG Terminal (LNG Supplier)

LNG Carrier (LNG Shuttle Vessel)

LNG Receiving Terminal Jetty

LNG Unloading Facility

LNG Storage (Land Base / Floating Storage)

LNG Regasification Unit

BOG Handling Unit

Gas Metering Facility

LNG Metering Facility

Gas Piping System

HSE System

Marine Virtual Pipeline

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13

PT PEL EXISTING PROJECT

LEMBAR 32 MMSCFD

Pipeline

or

Trucking

2015-2016 SUPPLY

FROM

BONTANG

2017 SUPPLY

FROM

BONTANG

2016 SUPPLY

TO

LOMBOK

LEMBAR 32 MMSCFD

Best solution to 200MW gas-fired power plant at Benoa of Bali, Indonesia

Gas-fired Power

Plant

Small scale LNG

distribution in

Indonesia

FSU & FRU

(Vs. Land LNG

Plant)

200MW gas-fired power plant at Benoa of Bali (Ready!)

Its commissioning operation takes place in December 2015

(preparation period is very limited )

Required gas volume for 200 MW is 40 mmscfd, equaling 40,800

mmbtu/day (1mmscf = 1,020 mmbtu)

The residents tend to favor energy supply solutions that are situated

far away from where they live.

Around 50% lower capital costs in comparison to onshore terminal

costs

Simple permitting (Land LNG Plant is very limited for the permitting)

Movable to a new location easily and strategically

Scalable to expand the capacity by adding more vessel-based

storage without additional regas-capacity

Short term of the terminal construction

In consideration to an archipelagic state of Indonesia, small scale

LNG distribution is a best way by using a small scale LNG carrier

because, to cross an ocean, supercooling the gas into a liquid that

can be loaded on to a ship is a more cost-effective way to move

the molecules than natural gas moving by pipeline, which works

just find on dry land or short distances underwater

LNG is more preferable energy than coal because policy of the

anti-pollution (Emission reduction), price competitiveness and

technology development of the LNG infrastructure

Best solution to supply

natural gas to 200MW gas-

fired power plant at Benoa

of Bali ► a small scale LNG

carrier for LNG

transportation and FSU &

FRU for LNG storage &

Re-gasification

PROJECT BACKGROUND

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SOUTH TERMINAL JETTY, PORT OF BENOA

South Terminal 206 m Jetty

Indonesia Power

South Terminal

Gas Pipeline

FSU 2nd Hand LNG

Carrier FSU

New Built

Oct. 2015 May 2016 (Period of built New FSU)

Bali Project – Facility Plan BALI PROJECT – FACILITY PLAN

LNG Floating Storage Unit

(FSU)

LNG Floating Regasification Unit

(FRU)

Small Scale LNG Carrier

LNG Buffer Tank

Re-gasification Unit & LNG Feed Pump

LNG Feed Pump Room

LNG Ship to Ship with Loading Arm, Flexible Hose

FRU Steam Vaporizer type Capacity : 50 mmscfd Boiler : Dual Fuel Burner

FSU CCS : Membrane Mark-III Flex Capacity : 26k cbm Generator : Dual Fuel Engine

LNGC CCS : Bi-Lobe (IMO-C Type) Capacity : 31k cbm Propulsion : Dual Fuel Engine

Bali Project - Facility BALI PROJECT FACILITY

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EXISTING LNG TERMINAL AT BENOA, BALI (using new-built storage unit)

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FLOATING REGASIFICATION UNIT FOR BENOA LNG TERMINAL

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FLOATING REGASIFICATION UNIT FOR BENOA LNG TERMINAL

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THANK YOU