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INTEGRATING LNG INFRASTRUCTURE FOR POWER GENERATION UTILIZATION

4th LNG SUPPLY, TRANSPORT & STORAGE INDONESIA

Bali, 19th – 21st May 2014

Main Conference Day 2

Chairani Rachmatullah Senior Manager Primary Energy Planning and Evaluation

PT PLN (Persero)

E L E C T R I C I T Y F O R A B E T T E R L I F E

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Installed Capacity

48 GW installed capacity to serve 53 million customers with 75% electrification

ratio.

All GFPPs installed and can be operated in 2014 require supply of around 660

TBTU Natural Gas, however only 463 TBTU can be secured.

COAL GAS OIL HYDRO GEOTHERMAL OTHERS TOTAL

IPP 5.02 1.22 0.07 1.20 0.06 0.01 7.59

RENTAL 0.16 0.79 2.71 0.00 - - 3.66

PLN 17.54 12.06 3.00 3.51 0.57 0.00 36.67

TOTAL 22.72 14.07 5.78 4.72 0.63 0.02 47.93

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

GW

INSTALLED CAPACITY PER DECEMBER 2013

E L E C T R I C I T Y F O R A B E T T E R L I F E

Electricity Demand Projection 2013-2022

Sumatera: 10,6%

26

TWh

66

TWh

TWh

IT : 10,8%

18 44

TWh

JB : 7,6%

144

TWh

275

TWh

2013 2022

TWh

TWh 188

385

Kalimantan: 10,7% Sulawesi: 10,8%

Indonesia: 8,4%

Papua: 10%

Maluku: 10,9%

Nusa Tenggara: 11,1%

Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Demand (TWh) 189 208 227 246 266 286 308 332 358 387

ER ( % ) 79.6 82.6 85.9 88.9 91.9 93.7 95.3 96.8 97.4 97.8

E L E C T R I C I T Y F O R A B E T T E R L I F E

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New Additional 60 GW Power Plants (2013-2022)

Additional Plants to 2022: •CFPP : 38 GW •Hydro : 6.5 GW •GeoPP : 6 GW •CCPP : 5 GW •GTPP : 3.7 GW •Others : 0.3 GW

Additional HV Transmission line : 58.000 kmc Additional S/S Transformer : 134.000 MVA Additional Coal demand: 125 million ton/year Additional Gas demand: 500 TBTU/year

7,878

4,598

3,622 3,637

7,465 6,946

5,204

3,366 3,433

5,332

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CFPP HEPP GeoPP CCPP GTPP Other Total

E L E C T R I C I T Y F O R A B E T T E R L I F E

Production cost vs Revenue (2004 – 2013)

58

63 71

76

84

90 103

113

127

153

25

37

63 66

108

85 94

131 137

148

621

751

1,007 1,002

1,360

1,051 1,087

1,301 1,356 1,331

-

200

400

600

800

1,000

1,200

1,400

-

20

40

60

80

100

120

140

160

180

200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Rp

/KW

h

Tri

llio

n R

p

Sales (T Rp)

Fuel Cost (T Rp)

Production Cost(Rp/kWh)

1. 60% of Production cost is for Fuel cost influenced by primary

energy price volatility

2. Revenue increase due to sales growth and tariff increase

3. Loss is covered by subsidy from Government.

E L E C T R I C I T Y F O R A B E T T E R L I F E

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PT PLN

(Persero)

INPUT:

Coal, Fuel

Oil, Gas

Electricity

from IPP

Market

Price

OUTPUT:

Electrical

Energy to

support

economic

growth

Regulated

Price

Government of Indonesia to provide

Subsidy + Margin = Market Price – Regulated Price

Public Service Obligation

E L E C T R I C I T Y F O R A B E T T E R L I F E

Fuelmix optimisation

1. ROR type Hydro and Geothermal as Baseloader

2. SCPP as base loader

3. GTPP as intermediate peaker and peaking unit

4. Oil fueled PP only for :

- peaking unit

- must run unit

- remote area

E L E C T R I C I T Y F O R A B E T T E R L I F E

2008 – 2014 Fuelmix

43.1% 40.9% 44.1%

50.6% 51.4% 55.5%

22.0% 22.4%

20.8%

23.3% 24.1%

22.4% 4.9% 5.6%

5.1%

4.7% 4.4%

4.5%

7.3% 10.5% 6.8%

6.5% 7.7%

6.1%

22.7% 20.6% 23.1%

14.9% 12.4% 9.2%

2.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014

Biofuel FUEL OIL HYDRO GEOTHERMAL GAS COAL

E L E C T R I C I T Y F O R A B E T T E R L I F E

Role of primary energy for National Electricity

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Hydro

Geothermal

Coal

Gas

LNG

Oil

Fuel oil demand may increased when Gas/LNG is not available

E L E C T R I C I T Y F O R A B E T T E R L I F E

0

20

40

60

80

100

120

140

160

180

200

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Baseloader Load Follower Peaker

mm

scfd

Role of a gas power in Indonesia electricity supply system

Pipelined Gas Baseloader, Load follower

LNG Load follower, Peaker

CNG Peaker

E L E C T R I C I T Y F O R A B E T T E R L I F E

PLN Gas Balance

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-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2013 2014 2015 2016 2017 2018 2019 2020 2021

BB

TU

D

Batam Aceh Sumatera Utara

Riau Sumatera Selatan Jambi

Bangka Lampung Kalimantan Barat

Kalimantan Sulawesi Selatan Sulut-Gorontalo dan Sulteng

Papua Indonesia Timur Tersebar Jawa Bagian Barat

Jawa Bagian Tengah Jawa Bagian Timur Bali

TOTAL SUPPLY

E L E C T R I C I T Y F O R A B E T T E R L I F E

PLN LNG Balance

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2014 2015 2016 2017 2018 2019 2020

1 Sumatera - 12 14 15 13 13 13

2 East Indonesia - - 4 5 6 6 6

3 Bali - 2 4 4 3 3 3

4 Muara Karang and Priok 26 27 27 28 32 36 35

5 Muara Tawar 2 9 11 11 11 13 21

Total Demand 28 51 61 63 65 70 78

Total Supply 26 34 33 34 35 47 47

LNG Balance (2) (17) (28) (29) (30) (23) (31)

E L E C T R I C I T Y F O R A B E T T E R L I F E

Optimizing existing gas supply using CNG Storage

Sungai Gelam 5 MMSCFD CNG storage system

In operation since December 2013, for 80 MW peaking unit

Jakabaring 3 MMSCFD CNG storage system

In operation since February 2013, for 60 MW peaking unit

Other CNG Storage Project in progress:

PROJECT INSTALLED CAPACITY PLANNED COD STORAGE CAPACITY

PLTG Peaker Lampung 100 2014 10

PLTG Jambi Peaker 100 2014 5

PLTG Bawean 8 2014 2

PLTGU Gresik 1500 2014 20

PLTMG Tanjung Selor 8 2014 1,5

PLTG Bangkanai 300 2014 20

Grati 15 MMSCFD CNG storage system

In operation since July 2013, for full operation of Garti

CCPP (660 MW) during peaking time

Muara Tawar 25 MMSCFD CNG storage system

In operation since January 2014, for full operation of Muara

Tawar CCPP (2000 MW) during peaking time

Duri 5 MMSCFD CNG storage system

In operation since February 2014, for 100 MW peaking unit

Tambak Lorok 20 MMSCFD CNG storage system

Ready for operation since April 2014

1

2

3

4

5

6

E L E C T R I C I T Y F O R A B E T T E R L I F E

CNG Marine with Containerized CNG Tube and LCT Barge

Small amount of

existing gas supply in

Batam (4 BBTUD) is

compressed and

transported to nearby

island using truck and

Landing Craft Tank

Barge to suppy 6 MW

Gas engine.

E L E C T R I C I T Y F O R A B E T T E R L I F E

CNG Marine with Vessel

Gresik

Lombok

28 mmscf existing gas

supply in Gresik is

compressed and

transported to Lombok

using Vessel installed with

CNG tubes, to supply a 90

MW Peaking Unit.

E L E C T R I C I T Y F O R A B E T T E R L I F E

LNG FSRU

FSRU West Java operated by PT

Nusantara Regas. Deliver gas supply

to Muara Karang and Priok CCPPs

(4000 MW) around 26 cargo per year.

FSRU Lampung operated by PT

PGN, Tbk. Potential as gas supplier

for Muara Tawar CCPP (2000 MW)

during peak time (14 hours) up to 12

cargo per year.

Arun Regas Facility operated by PT

Pertamina. Will deliver gas supply to

Arun Peaker GTPP and Belawan

CCPP (total 1500 MW), up to 12

cargo per year.

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E L E C T R I C I T Y F O R A B E T T E R L I F E

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Integrating LNG Infrastructures

Issues at MIDSTREAM side :

Vessel ownership and operation

Regasification facility

Jetty

Pipeline

Permits

Issues at UPSTREAM side :

Gas well head

LNG Plant

Permits

Issues at DOWNSTREAM side :

Land acquisition

Construction schedule

Transmission lines

E L E C T R I C I T Y F O R A B E T T E R L I F E

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PLN’s Mini LNG Projects – Business Schemes

PLN buy gas at Plant Gate :

Gas Developer (and its

consortium) develop / provide:

- LNG Plant

- LNG Transportation

- LNG Regasification Facility

- LNG Terminal

- Necessary infrastuctures :

pipelines, ORF, meters

PLN buy gas at well head:

PLN or its contractors develop /

provide:

- LNG Plant

- LNG Transportation

- LNG Regasification Facility

- LNG Terminal

- Necessary infrasturctures :

pipelines, ORF, meters

Gas

Source

LNG

Plant Transportation

LNG

Storage Regas

Facility

Power

Plant

E L E C T R I C I T Y F O R A B E T T E R L I F E

Airport D/GEPP Pesanggaran (250 MW)

GTPP Gilimanuk (130 MW)

SCPP Celukan Bawang (380 MW)

GTPP Pemaron (90 MW)

New 150 kV

Existing 150 kV

Gas supply to Bali

Supply from

Jawa :

1. Submarine

Cable

(4x100 MW)

2. Overhead TL

500 kV

(400 MW)

E L E C T R I C I T Y F O R A B E T T E R L I F E

Very Small LNG vs Olein

1. Distributed small volume gas demand in Eastern

Indonesia

2. Savings compare to fuel oil : HSD, MFO, Biodiesel, Olein

3. Benefit of consuming Olein

Reduce import dependency

Cheaper price compare to HSD

Opportunity for local farmers

E L E C T R I C I T Y F O R A B E T T E R L I F E

Closing Remarks

1. Implementation of CNG/LNG technology is SIGNIFICANT as solution

to replace current Power Plant’s fuel oil consumption.

2. In short term, LNG still be used as base loader, to replace fuel oil for

all dual fired units. For long term, LNG will be assigned as

peaking/medium units with supply swing rate (peak/off peak) vary

from 40% - 100%.

3. Using MERIT ORDER analysis with least cost approach for electricity

generation planning : “The more of LNG price the less volume it is

required”.

E L E C T R I C I T Y F O R A B E T T E R L I F E

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Thank you

Contact : chairani.rachmatullah@pln.co.id