GAS INFRASTRUCTURE FACILITY FOR DOWNSTREAMindonesiangassociety.com/wp-content/uploads/2016/06/PD-1-Isnaini.pdf · GAS INFRASTRUCTURE FACILITY FOR DOWNSTREAM 6/18/20146/18/2014 1 1

MINISTRY OF ENERGY AND MINERAL RESOURCESDIRECTORATE GENERAL OF OIL AND GAS

GAS INFRASTRUCTURE FACILITY FOR DOWNSTREAM

6/18/2014 16/18/2014 1

GAS INFRASTRUCTURE FACILITY FOR DOWNSTREAM

PRESENTED BY:

ISNAINIOn Behalf Of

Director of Oil and Gas Downstream Business Development

AT:INDOPIPE 2014

THE 5TH INTERNATIONAL INDONESIA GAS INFRASTRUCTURE CONFERENCE & EXHIBITIONYOGYAKARTA, JUNE 17TH, 2014

AGENDA :

� REGULATION AND POLICY RELATED TO NATURAL GAS

BUSINESS IN DOWNSTREAM SECTOR

� INDONESIA’S GAS PIPELINE INFRASTRUCTURE

� TRANSMISSION AND DISTRIBUTION GAS PIPELINE

PROJECTS

� UTILIZATION OF NATURAL GAS AS AN ALTERNATIVE

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� UTILIZATION OF NATURAL GAS AS AN ALTERNATIVE

ENERGY TO SUPPORT NATIONAL ENERGY SECURITY

� OPPORTUNITIES AND CHALLENGES OF GAS PIPELINE

INVESTMENT

REGULATION AND POLICY RELATED TO

NATURAL GAS BUSINESS

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NATURAL GAS BUSINESS

IN DOWNSTREAM SECTOR

REGULATION AND POLICY RELATED TO NATURAL GAS

BUSINESS IN DOWNSTREAM SECTOR

1. Law number 22 / 2001 on Oil and Gas : Separation of Upstream and Downstream Business Activities

a. Upstream business activities include exploration and exploitation.

b. Downstream business activities include processing, storage, transportation and trading.

c. Government Regulation (GR) number 35 year 2004 jo (in conjunction with) GR number 55/2009 on Oil and Gas Upstream

Business Activities

d. Ministerial Regulation of Energy and Mineral Resources (EMR) number 3 year 2010 concerning Natural Gas Allocation and

Utilization for Domestic Demand

d. Minister of EMR sets annual Indonesia’s Natural Gas Balance

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d. Minister of EMR sets annual Indonesia’s Natural Gas Balance

2. Government Regulation (GR) number 36/2004 on Oil and Gas Downstream Business Activities :

a. Transportation business : transportation of natural gas through pipelines

b. Trading business : trading natural gas through pipelines

3. Ministerial Regulation of Energy and Mineral Resources (EMR) number 19/2009 on business activities of

natural gas through pipelines : the open access obligation in transmission and distribution pipelines,

to stop double function activities in the same pipeline as gas transporter and gas trader

4. Ministerial Regulation of Energy and Mineral Resources (EMR) number 3/2010 concerning Natural Gas Allocation and

Utilization for Domestic Demand

5. Minister of EMR sets annual Indonesia’s Natural Gas Balance

BUSINESS LICENSE OF OIL AND GAS DOWNSTREAM ACTIVITY(GR Number 36 / 2004 and MR of EMR Number 0007/2005)

• DOWNSTREAM BUSINESS ACTIVITIES CAN BE EXECUTED BY THE BUSINESS

ENTITIES AFTER RECEIVING BUSINESS LICENSE FROM MINISTER OR EMR

L

I

C

• BUSINESS LICENSE REQUIRED FOR CONDUCTING BUSINESS :

A. BUSINESS LICENSE OF OIL AND GAS PROCESSING

B. BUSINESS LICENSE OF OIL AND GAS STORAGE

C. BUSINESS LICENSE OF OIL AND GAS TRANSPORTATION

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C

E

N

S

E

C. BUSINESS LICENSE OF OIL AND GAS TRANSPORTATION

D. BUSINESS LICENSE OF OIL AND GAS TRADING

• BUSINESS ENTITIES CAN BE GIVEN TO MORE THAN ONE BUSINESS LICENSE ASLONG AS NOT CONTRADICT TO THE PROVISIONS REGULATION

• BUSINESS ENTITIES THAT DOING DOWNSTREAM BUSINESS ACTIVITYPROHIBITED DOING UPSTREAM BUSINESS ACTIVITY

INDONESIA’S GAS PIPELINE

INFRASTRUCTURE

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INFRASTRUCTURE

CATEGORIES OF

INDONESIA’S GAS PIPELINE INFRASTRUSTURE

� Transmission pipeline (Open access)

Pipeline with open access characteristics transport gas with many traders. The existing open

access pipeline is still transmission pipeline. Investment opportunities for distribution pipeline are

widely open.

� Downstream Dedicated Pipeline

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� Downstream Dedicated Pipeline

Downstream Dedicated Pipeline can be only constructed and used by company who own its

gas. Investors who want to invest in Downstream Dedicated Pipeline (DDP) must have agreement of

sales gas first.

� Floating Storage & LNG Receiving Terminal

As an archipelago country, Indonesia still needs many floating storage and LNG receiving

terminal to connect the supply and the demand of gas from many areas.

TRANSMISSION PIPELINE (OPEN ACCESS)

Aceh

Pertagas 21,5 Km

Sumatera Utara

Pertagas 116,2 Km

PGN 36,9 Km

Sumatera Selatan

Pertagas 459,29 Km

PRIVATE 17,5 Km

BU Panjang (Km)

PGN 373,6 (SSWJ I)

PGN 627,9 (SSWJ II)

BU Panjang (Km)

TGI 467,6 (Grissik – Batam – Singapura)

TGI 536 (Grissik – Duri)

Jambi

PRIVATE

COMPANY

35,5

Kaltim

Pertagas 68,9 Km

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PRIVATE

COMPANY17,5 Km

PGN 627,9 (SSWJ II)

Jawa Barat & Tangerang

Pertagas 483 Km

PRIVATE

COMPANY103,44 Km

Jawa Timur

Pertagas 430,4 Km

PRIVATE

COMPANY1,189 Km

NAD

D. Hilir Existing Plan

PGN 0 0

Pertamina 0 0

PrivateComp

0 0

Company FacilityWithout Facility

Total 0 0

Sumatera Utara


PGN 597,66 31

Pertamina 0 0

PrivateComp

0 0


Total 1 1

Jambi


PGN 0 0

Pertamina

Riau


PGN 12,693 2,98

Pertamina 0 0

PrivateComp

0 3,8


Total 1 2

Kepulauan Riau


PGN 55,95 24,2

Pertamina 0 0

PrivateComp

1,6 1,6


Total 2 2

DOWNSTREAM DEDICATED PIPELINE

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Pertamina 0 0

PrivateComp

87,5 0


Total 2 0

Bantem


PGN 322,92 68,67

Pertamina 0 0

PrivateComp

80,8 4,19


Total 6 4

DKI Jakarta


PGN 630,03 22,23

Pertamina 0 0

PrivateComp

0 0


Total 1 0

Jawa Barat


PGN 2.325,08 39,67

Pertamina 35,5 0

PrivateComp

250,09 12


Total 10 6

Jawa Timur


PGN 742,88 181,97

Pertamina 0 0

PrivateComp

195,81 30,81


Total 8 14

Papua


PGN 0 0

Pertamina 0 0

PrivateComp

12 0


Total 1 1

Sumatera Selatan


PGN 133,43 13,2

Pertamina 0 0

PrivateComp

22,37 0,7


Total 2 2

FLOATING STORAGE & LNG RECEIVING TERMINAL

FSRU West Java (existing)

PT Nusantara Regas

Capacity: 3 MTPA

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a. FSRU West Java (Nusantara Regas) onstream 2012

b. Arun Regasification (Pertamina) & Arun-Belawan transmission, onstream Q4 2014

c. FSRU Lampung (PGN) onstream Q3 2014

d. FSRU Middle Java(Pertamina) onstream Q1 2016

e. FSRU Banten (Energi Dian Kemala) onstream Q4 2015

The development of natural gas infrastructure will improve the distribution of natural gas for domestic needs.

10

Capacity: 3 MTPA

TRANSMISSION AND DISTRIBUTION

GAS PIPELINE PROJECTS

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ONGOING TRANSMISSION AND DISTRIBUTION


� Kepodang – Tambak Lorok Gas Pipeline Project

Ground breaking of this project on March 14th, 2014 by President Republic of

Indonesia in Central Java. This gas pipeline will be used to transmit gas from

Kepodang gas field to Tambak Lorok (Central Java).

�Gresik – Semarang Pipeline Project

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�Gresik – Semarang Pipeline Project

Still in Central Java, this pipeline will transmit gas from Gresik (East Java) to

Semarang (Central Java).

�Arun – Belawan Pipeline Project

This pipeline will be used to transmit gas from Arun (Aceh) to Belawan (North

Sumatera)

Kepodang – Tambak Lorok Gas Pipeline Project

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Construction of Gas Transmission Pipeline 14 inch 207 Km from

Kepodang to Tambak Lorok by PT Kalimantan Jawa Gas

Operator is PT Petronas Carigali Muriah Limited (PCML)

Plan of construction is August 2014 – August 2015

Alocated to PLTGU = 116 MMSCFD

Gresik – Semarang Pipeline Project

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Gresik – Semarang Pipeline Project,

by PT Pertamina Gas

Construction of Gas Transmission Pipeline 24 inch ± 250 Km

POINT B

SLS A

Bukit Krud

Rantau Panjang

PT. Arun/

DJKN

35 Km

Exxon Mobil 38 Km

Patria Kamau 5 Km

Villagers, 1 Km

Bumi Flora 6 Km

Bumi Flora 12.6 Km

Segmen 3 : 26.6 KMSegmen 2 : 192.2 KMSegmen 1 : 114.3 KM

Medco

11 Km PTPN I 18 KM

Minamas 8 Km

Damar Siput 3 Km

PTPN I, 11 Km PTPN I 10 Km

POINT A

PTPN I 4 Km

Villagers 6 Km

PTPN I 4 Km

Villagers 3 Km

U

Wahyu Rizki 6 Km

Arun – Belawan Pipeline Project

Arun – Belawan Pipeline Project,

by PT Pertamina Gas

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15

Rantau

Pangkalan Batu

Sicanang

Belawan

PEP Rantau

and PEP P.

Susu

59 Km

Pertagas existing

ROW

49 Km

Stabat

Timbang Langsa 4 Km

Arco 3 Km

Mainly villagers 12Km

Villagers

9 Km

PLN Belawan 1 Km

Tg.Seumeuntok

PTPN I 4 Km

Pangkalan Brandan

PTPN II

16 Km

UTILIZATION OF NATURAL GAS AS AN

ALTERNATIVE ENERGY TO SUPPORT

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ALTERNATIVE ENERGY TO SUPPORT

NATIONAL ENERGY SECURITY

ActivitiesActivitiesYEARYEAR

20082008 20092009 20102010 20112011 20122012 20132013 20142014

Regulatory & Supporting Policy Regulatory & Supporting Policy

PreparationPreparation

Revision became Plan of Natural Gas Revision became Plan of Natural Gas

Distribution Network Plan for 6 Distribution Network Plan for 6

Regions (Front End Engineering Regions (Front End Engineering

Design (FEED), Detail Engineering Design (FEED), Detail Engineering

Design for Construction (DEDC) & Design for Construction (DEDC) &

Institutional Review)Institutional Review)

• Semarang, Jateng

ROADMAP OF THE DEVELOPMENT OFROADMAP OF THE DEVELOPMENT OF

NATURAL GAS DISTRIBUTION NETWORK FOR HOUSEHOLDNATURAL GAS DISTRIBUTION NETWORK FOR HOUSEHOLD

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FEED and DEDC ofFEED and DEDC of

Natural Gas Network Natural Gas Network

for Householdfor Household

1) Blora

2) Palembang

3) Bekasi

4) Depok

5) Surabaya

6) Medan

• Tarakan,

Kaltim

• Sidoarjo, Jatim

• Rmh SusunJabodetabek

• Bontang, Kaltim

• Sengkang,Sulsel

• Bogor

• Cirebon

• Jambi

• Prabumulih

• Kalidawir

Sidoarjo

• Sorong, Papua

• Ogan Ilir Sumsel

• Subang, Jabar

• Blora Jateng

• Semarang, Jateng

• Batam

• Bulungan

• Sidoarjo

• Lhokseumawe

• Kab. Bekasi

• Bojonegoro

• Lhoksukon

• Gresik

• Dumai, Riau

Development of Development of Natural Gas Natural Gas

Distribution Network Distribution Network for Household for Household

(Construction Phase)(Construction Phase)

1. Kota

Palembang;

2. Kota

Surabaya.

1. Bekasi;

2. Depok;

3. Tarakan,

Kaltim;

4. Sidoarjo, Jatim

1. Bontang, Kaltim

2. Sengkang, Sulsel

3. Bekasi

4. Sidoarjo

5. Rusun Jabotabek

1. Bogor

2. Cirebon

3. Jambi

4. Prabumulih

5. Kalidawir

Sidoarjo

1. Sorong, Papua

2. Ogan Ilir

3. Subang, Jabar

4. Blora, Jateng

1. Semarang,

Jateng

2. Bulungan

3. Sidoarjo

4. Kab Bekasi

5. Lhokseumawe

REALIZATIONREALIZATION OF THE DEVELOPMENT OFOF THE DEVELOPMENT OF

NATURAL GAS DISTRIBUTION NETWORK FOR HOUSEHOLDNATURAL GAS DISTRIBUTION NETWORK FOR HOUSEHOLD 2009 2009 -- 20132013

Location Number of household

connections

Gas Allocation (MMSCFD)

South Sumatera (3 cities) 11.686 2

Jambi (1 city) 4.000 0,5

Jakarta, Bogor, Tangerang 5.254 0,5

East Java (2 cities) 11.547 2

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East Java (2 cities) 11.547 2

Central Java(1 city) 4.000 0,5

West Java (5 cities) 20.628 3

East Kalimantan (2 cities) 7.326 2,2

South Sulawesi (1 city) 4.172 1

West Papua (1 city) 3.898 0,5

TOTAL AMOUNT 72.511 12,2

Gas stations

Existing

Private

National

Budgeting

Jabodetabek

Palembang

Surabaya

Palembang (National Budgeting

2011)

Surabaya (Nastional Budgeting

2012)

10 Gas Stations

1 Gas Station

3 Gas Stations

4 Gas Stations

4 Gas Stations

Gas stations

construction

National

Budgeting 2013

National

Jabodetabek

Balikpapan

Jabodetabek

4 Gas Stations, 4 MRU

4 Gas Stations


FUEL TO GAS CONVERSION PROGRAM FOR ROAD TRANSPORTFUEL TO GAS CONVERSION PROGRAM FOR ROAD TRANSPORT

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(National

Budgeting)

National

Budgeting 2014

Gas stations

construction

(Private)

2013

2014

Jabodetabek

Semarang


4 Gas Stations

Jabodetabek

Jabodetabek - Pertamina

Jabodetabek - PGN



6 Gas Stations

Total amount of gas station:

- Until 2013 32 Gas stations & 6 MRU

- Until 2014 71 Gas stations & 13 MRU

Jawa BaratArea for Mini LNG Plant

& LCNG Station

East Java - PGN 2 Gas Stations

Riau - PGN 1 Gas Station

Needed additional allocation (2014) :

a. PGN : + 7,5 MMSCFD

b. Pertamina : + 5,68 MMSCFD

OPPORTUNITIES AND CHALLENGES OF

GAS PIPELINE INVESTMENT

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GAS PIPELINE INVESTMENT

OPPORTUNITIES OF GAS OPPORTUNITIES OF GAS PIPELINE PIPELINE INVESTMENT INVESTMENT IN DOWNSTREAM SECTORIN DOWNSTREAM SECTOR

• Construction of the LNG Storage / Receiving Terminal

• Construction of transmission and distribution gas pipelines

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• Construction of transmission and distribution gas pipelines

• Facility of LNG Tankers

• Construction of gas infrastructure for road transport (Gas Station, converter kit workshops , etc.);

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Documents

GAS INFRASTRUCTURE FACILITY FOR DOWNSTREAMindonesiangassociety.com/wp-content/uploads/2016/06/PD-1-Isnaini.pdf · GAS INFRASTRUCTURE FACILITY FOR DOWNSTREAM 6/18/20146/18/2014 1 1