MINISTRY OF ENERGY AND MINERAL RESOURCES DIRECTORATE GENERAL OF OIL AND GAS
GAS INFRASTRUCTURE FACILITY FOR DOWNSTREAM PRESENTED BY:
ISNAINI On Behalf Of Director of Oil and Gas Downstream Business Development AT: INDOPIPE 2014 TH THE 5 INTERNATIONAL INDONESIA GAS INFRASTRUCTURE CONFERENCE & EXHIBITION YOGYAKARTA, JUNE 17TH, 2014 6/18/2014 6/18/2014
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AGENDA : REGULATION AND POLICY RELATED TO NATURAL GAS BUSINESS IN DOWNSTREAM SECTOR INDONESIA’S GAS PIPELINE INFRASTRUCTURE TRANSMISSION PROJECTS
AND DISTRIBUTION GAS PIPELINE
UTILIZATION OF NATURAL GAS AS AN ALTERNATIVE ENERGY TO SUPPORT NATIONAL ENERGY SECURITY OPPORTUNITIES AND CHALLENGES OF GAS PIPELINE INVESTMENT
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REGULATION AND POLICY RELATED TO NATURAL GAS BUSINESS IN DOWNSTREAM SECTOR
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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 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
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BUSINESS LICENSE OF OIL AND GAS DOWNSTREAM ACTIVITY (GR Number 36 / 2004 and MR of EMR Number 0007/2005) •
L I C E N S E
DOWNSTREAM BUSINESS ACTIVITIES CAN BE EXECUTED BY THE BUSINESS ENTITIES AFTER RECEIVING BUSINESS LICENSE FROM MINISTER OR EMR
• 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 D. BUSINESS LICENSE OF OIL AND GAS TRADING
• BUSINESS ENTITIES CAN BE GIVEN TO MORE THAN ONE BUSINESS LICENSE AS LONG AS NOT CONTRADICT TO THE PROVISIONS REGULATION
• BUSINESS ENTITIES THAT DOING DOWNSTREAM PROHIBITED DOING UPSTREAM BUSINESS ACTIVITY 6/18/2014 6/18/2014
BUSINESS
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ACTIVITY
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INDONESIA’S GAS PIPELINE INFRASTRUCTURE
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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 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.
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TRANSMISSION PIPELINE (OPEN ACCESS) Aceh Pertagas
Sumatera Utara 21,5 Km
Pertagas
116,2 Km
PGN
36,9 Km Kaltim
BU
Panjang (Km)
TGI
467,6 (Grissik – Batam – Singapura)
TGI
536 (Grissik – Duri)
Pertagas
68,9 Km
Jambi PRIVATE COMPANY
35,5
Sumatera Selatan Pertagas
459,29 Km
PRIVATE COMPANY
17,5 Km
BU
Panjang (Km)
PGN
373,6 (SSWJ I)
PGN
627,9 (SSWJ II)
Jawa Barat & Tangerang
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Pertagas
483 Km
PRIVATE COMPANY
103,44 Km
Jawa Timur Pertagas
430,4 Km
PRIVATE COMPANY
1,189 Km
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DOWNSTREAM DEDICATED PIPELINE NAD D. Hilir
Sumatera Utara
Existing
Plan
PGN
0
0
Pertamina
0
0
Private Comp
0
0
Company
Facility
Without Facility
Total
0
0
Riau
Kepulauan Riau
D. Hilir
Existing
Plan
D. Hilir
Existing
Plan
D. Hilir
Existing
Plan
2,98
PGN
55,95
24,2
PGN
597,66
31
PGN
12,693
Pertamina
0
0
Pertamina
0
0
Pertamina
0
0
Private Comp
0
0
Private Comp
0
3,8
Private Comp
1,6
1,6
Company
Facility
Without Facility
Company
Facility
Without Facility
Company
Facility
Without Facility
Total
1
1
Total
1
2
Total
2
2
Jambi D. Hilir
Existing
Plan
PGN
0
0
Pertamina
0
0
Private Comp
87,5
0 D. Hilir
Existing
Plan
Company
Facility
Without Facility
PGN
0
0
Total
2
0
Pertamina
0
0
Private Comp
12
0
Company
Facility
Without Facility
Total
1
1
Papua
Sumatera Selatan D. Hilir
Existing
Plan
PGN
133,43
13,2 Bantem
Pertamina
0
0
Private Comp
22,37
0,7
Company
Facility
Without Facility 2
Private Comp
Total
2
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DKI Jakarta
D. Hilir
Existing
Plan
PGN
322,92
Pertamina
0
Jawa Barat
D. Hilir
Existing
Plan
68,67
PGN
630,03
0
Pertamina
0
80,8
4,19
Private Comp
Company
Facility
Without Facility
Total
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4
Jawa Timur
D. Hilir
Existing
Plan
D. Hilir
Existing
Plan
22,23
PGN
2.325,08
0
Pertamina
35,5
39,67
PGN
742,88
181,97
0
Pertamina
0
0
0
Private Comp
0
250,09
12
Private Comp
195,81
30,81
Company
Facility
Without Facility
Company
Facility
Without Facility
Company
Facility
Without Facility
Total
1
0
Total
10
6
Total
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FLOATING STORAGE & LNG RECEIVING TERMINAL
FSRU West Java (existing) PT Nusantara Regas Capacity: 3 MTPA
a. b. c. d. e.
FSRU West Java (Nusantara Regas) onstream 2012 Arun Regasification (Pertamina) & Arun-Belawan transmission, onstream Q4 2014 FSRU Lampung (PGN) onstream Q3 2014 FSRU Middle Java(Pertamina) onstream Q1 2016 FSRU Banten (Energi Dian Kemala) onstream Q4 2015
The development of natural gas infrastructure will improve the distribution of natural gas for domestic needs. 6/18/2014 6/18/2014
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TRANSMISSION AND DISTRIBUTION GAS PIPELINE PROJECTS
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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 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) 6/18/2014 6/18/2014
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Kepodang – Tambak Lorok Gas Pipeline Project
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 6/18/2014 6/18/2014
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Gresik – Semarang Pipeline Project
Gresik – Semarang Pipeline Project, by PT Pertamina Gas Construction of Gas Transmission Pipeline 24 inch ± 250 Km 6/18/2014 6/18/2014
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Arun – Belawan Pipeline Project Segmen 2 : 192.2 KM
Segmen 1 : 114.3 KM
Bukit Krud Medco 11 Km
POINT B PT. Arun/ DJKN 35 Km
Arun – Belawan Pipeline Project, by PT Pertamina Gas
PTPN I 18 KM Bumi Flora 12.6 Km
POINT A
U
Segmen 3 : 26.6 KM
Bumi Flora 6 Km
Rantau Panjang PTPN I 4 Km Exxon Mobil 38 Km
SLS A
Villagers 3 Km
Villagers 6 Km Wahyu Rizki 6 Km
Patria Kamau 5 Km
Minamas 8 Km
Villagers, 1 Km
Damar Siput 3 Km PTPN I, 11 Km
PTPN I 10 Km PTPN I 4 Km
Timbang Langsa 4 Km Arco 3 Km Mainly villagers 12Km
Tg.Seumeuntok Rantau
PEP Rantau and PEP P. Susu 59 Km
Pangkalan Batu Pangkalan Brandan Villagers 9 Km
Sicanang Belawan
Pertagas existing ROW 49 Km
PLN Belawan 1 Km
Stabat
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PTPN II 16 Km
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UTILIZATION OF NATURAL GAS AS AN ALTERNATIVE ENERGY TO SUPPORT NATIONAL ENERGY SECURITY
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ROADMAP OF THE DEVELOPMENT OF NATURAL GAS DISTRIBUTION NETWORK FOR HOUSEHOLD YEAR
Activities
2008
2009
2010
2011
2012
2013
2014
Regulatory & Supporting Policy Preparation Revision became Plan of Natural Gas Distribution Network Plan for 6 Regions (Front End Engineering Design (FEED), Detail Engineering Design for Construction (DEDC) & Institutional Review) • Semarang, Jateng 1) Blora
FEED and DEDC of Natural Gas Network for Household
2) Palembang 3) Bekasi 4) Depok 5) Surabaya
• Rmh Susun • Tarakan, Jabodetabek Kaltim • Bontang, Kaltim • Sidoarjo, Jatim • Sengkang, Sulsel
• • • • •
6) Medan
Development of Natural Gas Distribution Network for Household (Construction Phase) 6/18/2014 6/18/2014
1. Kota Palembang; 2. Kota Surabaya.
1. Bekasi; 2. Depok; 3. Tarakan, Kaltim; 4. Sidoarjo, Jatim
1. 2. 3. 4. 5.
Bogor Cirebon Jambi Prabumulih Kalidawir Sidoarjo
Bontang, Kaltim Sengkang, Sulsel Bekasi Sidoarjo Rusun Jabotabek
• Batam • • • •
Sorong, Papua • Bulungan Ogan Ilir Sumsel • Sidoarjo Subang, Jabar • Lhokseumawe Blora Jateng • Kab. Bekasi
1. Bogor 2. Cirebon 3. Jambi 4. Prabumulih 5. Kalidawir Sidoarjo
• Bojonegoro • Lhoksukon • Gresik • Dumai, Riau
1. Semarang, Jateng 1. 2. 3. 4.
Sorong, Papua Ogan Ilir Subang, Jabar Blora, Jateng
2. Bulungan 3. Sidoarjo 4. Kab Bekasi
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5. Lhokseumawe 17
REALIZATION OF THE DEVELOPMENT OF NATURAL GAS DISTRIBUTION NETWORK FOR HOUSEHOLD 2009 - 2013 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
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
4.172
1
West Papua (1 city)
3.898
0,5
TOTAL AMOUNT
72.511
12,2
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(1 city)
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FUEL TO GAS CONVERSION PROGRAM FOR ROAD TRANSPORT Jabodetabek
10 Gas Stations
Palembang
1 Gas Station
Surabaya
3 Gas Stations
Palembang (National Budgeting 2011)
4 Gas Stations
Surabaya (Nastional Budgeting 2012)
4 Gas Stations
National Budgeting 2013
Jabodetabek Balikpapan
4 Gas Stations, 4 MRU 4 Gas Stations
National Budgeting 2014
Jabodetabek
10 Gas Stations, 4 MRU
Semarang
4 Gas Stations
Jawa Barat
Area for Mini LNG Plant & LCNG Station
Jabodetabek
2 Gas Stations, 2 MRU
Jabodetabek - Pertamina
10 Gas Stations, 3 MRU
Jabodetabek - PGN East Java - PGN Riau - PGN
6 Gas Stations
Private
Gas stations Existing National Budgeting
Gas stations construction (National Budgeting)
Gas stations construction (Private)
2013 2014
Needed additional allocation (2014) : a. PGN : + 7,5 MMSCFD b. Pertamina : + 5,68 MMSCFD
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2 Gas Stations 1 Gas Station
Total amount of gas station: - Until 2013 32 Gas stations & 6 MRU - Until 2014 71 Gas stations & 13 MRU
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OPPORTUNITIES AND CHALLENGES OF GAS PIPELINE INVESTMENT
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OPPORTUNITIES OF GAS PIPELINE INVESTMENT IN DOWNSTREAM SECTOR • Construction of the LNG Storage / Receiving Terminal
• 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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