gas infrastructure facility for...
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MINISTRY OF ENERGY AND MINERAL RESOURCESDIRECTORATE GENERAL OF OIL AND GAS
GAS INFRASTRUCTURE FACILITY FOR DOWNSTREAM
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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
D. Hilir Existing Plan
PGN 597,66 31
Pertamina 0 0
PrivateComp
0 0
Company FacilityWithout Facility
Total 1 1
Jambi
D. Hilir Existing Plan
PGN 0 0
Pertamina
Riau
D. Hilir Existing Plan
PGN 12,693 2,98
Pertamina 0 0
PrivateComp
0 3,8
Company FacilityWithout Facility
Total 1 2
Kepulauan Riau
D. Hilir Existing Plan
PGN 55,95 24,2
Pertamina 0 0
PrivateComp
1,6 1,6
Company FacilityWithout Facility
Total 2 2
DOWNSTREAM DEDICATED PIPELINE
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Pertamina 0 0
PrivateComp
87,5 0
Company FacilityWithout Facility
Total 2 0
Bantem
D. Hilir Existing Plan
PGN 322,92 68,67
Pertamina 0 0
PrivateComp
80,8 4,19
Company FacilityWithout Facility
Total 6 4
DKI Jakarta
D. Hilir Existing Plan
PGN 630,03 22,23
Pertamina 0 0
PrivateComp
0 0
Company FacilityWithout Facility
Total 1 0
Jawa Barat
D. Hilir Existing Plan
PGN 2.325,08 39,67
Pertamina 35,5 0
PrivateComp
250,09 12
Company FacilityWithout Facility
Total 10 6
Jawa Timur
D. Hilir Existing Plan
PGN 742,88 181,97
Pertamina 0 0
PrivateComp
195,81 30,81
Company FacilityWithout Facility
Total 8 14
Papua
D. Hilir Existing Plan
PGN 0 0
Pertamina 0 0
PrivateComp
12 0
Company FacilityWithout Facility
Total 1 1
Sumatera Selatan
D. Hilir Existing Plan
PGN 133,43 13,2
Pertamina 0 0
PrivateComp
22,37 0,7
Company FacilityWithout Facility
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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GAS PIPELINE PROJECTS
ONGOING TRANSMISSION AND DISTRIBUTION
GAS PIPELINE PROJECTS
� 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
10 Gas Stations, 4 MRU
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
10 Gas Stations, 4 MRU
4 Gas Stations
Jabodetabek
Jabodetabek - Pertamina
Jabodetabek - PGN
2 Gas Stations, 2 MRU
10 Gas Stations, 3 MRU
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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