96844_Indonesia LNG.doc

8/10/2019 96844_Indonesia LNG.doc

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FACTBOX-Indonesia LNG plants, projects2009-07-0 0!0" #$TC%

&A'A(TA, &)l* #(e)ters% - Indonesia, t+e orlds t+ird-.i//est li)e1ied nat)ral /as#LNG% eporter, +as dispatc+ed its 1irst s+ip3ent 1ro3 Tan//)+ in 4ap)a, a project it

+opes ill o11set 1allin/ o)tp)t in ot+er a/ein/ 1ields5

T+e 1irst car/o 1ro3 B4-led Tan//)+ is d)e to /o to 4O6COs LNG ter3inal inGan/*an/, 6o)t+ 'orea, ener/* atc+do/ B4IGA6 said in a state3ent5

T+e /as ca3e 1ro3 Tan//)+s 1irst LNG train, +ile t+e second train is epected to startoperatin/ t+is )arter, B4IGA6 said5

T+e /lo.al econo3ic crisis +as p)s+ed don LNG de3and aro)nd t+e orld and 3eanst+at Indonesia, +ic+ is .e+ind 8atar and ala*sia as an eporter, s+o)ld +ae 3oreaaila.le to s)ppl*, partic)larl* it+ t+e Tan//)+ project co3in/ on strea35

In t+e past, &a:arta +as so3eti3es 1ailed to 3eet its contract)al co33it3ents totraditional 3ar:ets s)c+ as &apan, 6o)t+ 'orea and Taian, o1ten a/reed 3ore t+an adecade a/o, as it +as so)/+t to sitc+ 3ore s)ppl* to t+e do3estic 3ar:et5

;ere is an o)tline o1 Indonesias LNG ind)str* and )pco3in/ /as projects!

Existing plants:

BONTANG - LNG prod)ction .e/an at t+e Bontan/ plant in


2/22

'$TAI BA6IN - C+eron Corp is d)e to decide +et+er to 3oe to 1inal desi/n on t+e')tai Basin nat)ral /as project o11


3/22

Tan//)+ LNG is t+e t+ird LNG +). in Indonesia5 In arc+ 200@ t+e Goern3ent o1Indonesia /ae t+e /o a+ead 1or t+e Tan//)+ LNG project in Bint)ni Ba* o1 Jest 4ap)a5Ta:in/ its na3e 1ro3 t+e Indonesia ord 1or Kresilient and stron/K, Tan//)+ is centeredon t+e Bint)ni Ba* area o1 4ap)a, Indonesia - aro)nd seen +o)rs 1li/+t 1ro3 &a:arta5Jit+ ?75= interest in t+e project, B4 Indonesia is t+e operator o1 Tan//)+ )nder aprod)ction s+arin/ contract it+ B4IGA6 #Indonesias re/)lator* .od* 1or oil and /as)pstrea3 actiities%5In Octo.er 2007 t+e project co3pleted its planned loan a/ree3ent totalin/ $6?5@ .illionit+ seeral international .an:s to 1inance t+e deelop3ent o1 t+e LNG plant5 T+eeternal 1inancin/ +i/+li/+ts inestors con1idence in t+e project54roject location and di3ensionsT+e 4roject inoles t+e tappin/ o1 si 1ields to etract co3.ined proen reseres o1aro)nd =D5D trillion c).ic 1eet o1 clean /as5 To nor3all* )n3anned o11s+ore prod)ctionplat1or3s located in Bint)ni Ba* ill collect /as 1ro3 t+e reseroir, t+en send it t+ro)/+s).-sea pipelines to an LNG processin/ 1acilit* on t+e so)t+ s+ore5 Fro3 +ere, LNG ill/o to ener/* 3ar:ets )sin/ LNG tan:ers5


4/22

t+e site incl)des stora/e tan:s, an LNG tan:er loadin/ ter3inal, as ell as 3aintenance1acilities, o11ices and a personnel acco33odation co3ple5

LNG sales and future expansion

T+e Tan//)+ LNG plant +as alread* sec)red lon/ ter3 LNG sales to 1o)r c)sto3ers5 Itill delier LNG to t+e F)jian LNG project in C+ina, '-4oer Co5, Ltd in 'orea,4O6CO in 'orea and 6e3pra


5/22

Aceh*1978 3 original/new trains1 2/1983-42 1/198!

3 x 150 3 x 170 3 x 150 1-3#eottlene. in.reases

ea. train to29

4-!:#eottlene.

in.reasesea. train to

35+rain

"losres4/2001:2otalle,.ts 29;!otalle,.ts 350

TOTAL#P eser.es Production E

GasTC0" 1"

Condensate&illion BBLS" +"

Gas&illion

C0/day" 2"

Condensate'B3" 4"

'a5Produ0ields

ational: 1341Bontang: 248

Arn: 5!

!20345

30

!)8042)841!94;

(3)381*

1087812

(54*

Bontanganga 6soreaaa$astaliant"s (inBa,a) +n)+aorai)

e.io)eanliel,s anasso.iatero 'anAttaa)Bea1) >2iel,s*

Initial Cost ?ogl@ 12-15 illion ea

Bontang an, A.e on two tan, tree trains) res


6/22

6il (6saa &as* an, $astaliantan " (100D GnA.e 100D $xxonoil oatra " (o wi.ertaina taes 70D o o

O7nership 3o7nstrea& 9" + Ba,a &C "o at Bon(55D ertaina) 20D Fi.o

>aa


7/22

)s/iantoro said +e +as as:ed state /as 1ir3, 4T 4er)sa+aan Gas Ne/ara T.: #4GN%, to.)ild t+e ter3inal5

4GNMs president director ;endi 4rio 6antoso said t+e ter3inal is epected to +ae a

capacit* o1 aro)nd =@0 3illion c).ic 1eet o1 /as per da*5 ;e did not /ie a 1i/)re 1or t+einest3ent re)ired5

B)ildin/ 1loatin/ LNG receiin/ ter3inal is )ic:er co3pared it+ /as pipeline5 Jeill tal: to B4IGA6 to see +o e ill /et t+e LNG 1or t+is ter3inal,M 6antoso said5+ttp!EE5ln/pedia5co3Eindonesia-plans-ln/-1loatin/-receiin/-ter3inal-in-n-s)3atraE

Indonesias LNG ter3inal 1aces dela*s

B* $pstrea3 sta11

T+e constr)ction o1 Indonesias 1irst li)i1ied nat)ral /as receiin/ ter3inal 3a* .edela*ed .* 1)ndin/ oes and di11erences oer plant speci1ications, a senior o11icial o1state poer co3pan* 4T 4er)sa+aan Listri: Ne/ara #4LN% said toda*5

A consorti)3 o1 4LN, 4T 4er)sa+aan Gas Ne/ara #4GN% and state oil co3pan*4erta3ina initiall* planned to .)ild t+e ?-3illion-tonnes per *ear LNG receiin/ ter3inal+ose constr)ction as epected to .e co3pleted in 20=2 or 20=?5

A 4GN o11icial +as .een preio)sl* )oted .* t+e Bisnis Indonesia dail* as sa*in/ t+ealternaties ere to .)ild a 3ini ter3inal it+ an ann)al capacit* o1 =5@ 3illion tonnes ora 1loatin/ ter3inal it+ capacit* o1 = 3illion tonnes a *ear5

4LN needs t+e LNG receiin/ ter3inal to sec)re /as s)ppl* 1or its /as-1ired poerplants, especiall* on t+e island o1 &aa5

Indonesia, no t+e orlds n)3.er-t+ree LNG eporter a1ter 8atar and ala*sia, is.oostin/ )se o1 ener/* so)rces s)c+ as nat)ral /as to red)ce oil )se .eca)se o1 +i/+prices and dindlin/ do3estic s)ppl*5

K4LN ant t+e consorti)3 to stic: it+ t+e ori/inal plan to .)ild t+e LNG ter3inal onland in Jest &aa,K (e)ters )oted Fa+3i oc+tar, t+e co3pan*s president director, astellin/ reporters5

KI1 t+e consorti)3 c+an/es t+e ori/inal plan t+en 4LN ill not join t+e project5K
http://www.lngpedia.com/indonesia-plans-lng-floating-receiving-terminal-in-n-sumatra/http://www.lngpedia.com/indonesia-plans-lng-floating-receiving-terminal-in-n-sumatra/


8/22

Indonesias Bontan/ LNG plant, in


9/22

+e in,str@ wants te &6E to strengten C& goernan.e an, reise

or .lari@ e@ reglations to i


10/22

Indonesian LNG Statistics


11/22

Bontang .rrentl@


12/22

.argoes tat En,onesia will .an.el to its Asian @ers tis @ear +e ale o te .an.elle,

.argoes is estiate, at 800-900 illion) o wi. te &6E wol, ae nette, al Enstea,)

ertaina will se te gas ,oesti.all@ to te ertiliKer in,str@ or n,er tan 250/t) less

tan al te aerage Bontang C& .ontra.t


13/22

an, existing C& .ontra.ts +e .rrent aalga o C& sellers is nliel@ to i


14/22

ationali@e Policy&a%ing, %in, a alan.e etween s


15/22

T+e on//i LNG ter3inal in Indonesia +as r)n into tro).le 1olloin/ t+e anno)nce3ent.* ice-president )s)1 'alla t+at nat)ral /as o)tp)t 1ro3 t+e 6enoro and atindo:1ields intended to s)ppl* t+e ter3inal o)ld instead .e allocated to t+e do3estic 3ar:et5KJe cannot eport /as oerseas, +ile at t+e sa3e ti3e o)r ind)str* 1aces /as s+orta/es5Independence in ener/* is critical,K said 'alla, )oted .* t+eJakarta %ostnespaper5

'alla also e3p+asised t+at t+e decision as 1inal and +ad .een ta:en collectiel* .* t+e/oern3ent and 4resident 6)silo Ba3.an/ )d+o*ono5 ;oeer, NOC 4T 4erta3ina#+ic+ +olds a 29 sta:e in t+e LNG ter3inal project% +as ar/)ed t+at /as 1ro3 t+e to1ields s+o)ld .e )sed .ot+ to s)ppl* t+e LNG plant 1or eports and 1or t+e do3estic3ar:et5 4erta3ina said t+e sc+e3e o)ld or: i1 at least 2@0 33c1Ed o1 /as as sold1ro3 t+e 6enoro 1ield and "@ 33c1Ed 1ro3 t+e atindo: 1ield at a price o1$65=E33Bt), +ile 70 33c1Ed o1 /as co)ld .e distri.)ted to do3estic petroc+e3icalco3panies at a price o1 $6?5=7E33Bt)5 4artner edco


16/22

J+at i3pact is t+e /oern3ents decision li:el* to +ae on t+e on//i-6enoro LNGproject It is li:el* to )ite serio)sl* )nder3ine its).is+is interest in p)rs)in/ t+eproject as t+e potential reen)es 1or s)ppl*in/ t+e do3estic 3ar:et it+ LNG areconsidera.l* loer t+an 1or t+e eport5 its).is+i entered into t+e project it+ t+e)nderstandin/ t+at =00 o1 t+e ter3inals o)tp)t as to .e eported, so t+e /oern3ents

anno)nce3ent is li:el* to +ae 1)nda3entall* c+an/ed t+e projects econo3ics5 Indeed,t+e ter3inals total capacit* as d)e to .e 2 3illion tE*, +ic+ s)//ests t+at er* littles)rpl)s LNG o)ld .e aaila.le 1or eport i1 t+e /oern3ent allocates .eteen = and 23illion tE* to 1ertiliser plants, it+ additional ol)3es /oin/ to local ind)stries5its).is+i is pro.a.l* no aitin/ on t+e res)lts o1 4erta3ina and edcos re)est tot+e /oern3ent to adopt a co3pro3ise sol)tion to s)ppl* .ot+ t+e do3estic and eport3ar:et5 ;oeer, 4erta3ina +as stated t+at s)ppl*in/ .ot+ 3ar:ets ill ca)se potentialdela*s to t+e projects ori/inal start-)p date o1 20=2 #possi.l* d)e to t+e need 1or 1)rt+ereploration at t+e /as 1ields%, +ic+ ill 3a:e t+is option less attractie 1or its).is+i5oreoer, t+e date on t+e o11icial letter re)estin/ &)s)1 'alla to reconsider /asallocation plans as " &)ne and t+e /oern3ent +as still not so1tened its position5 I1 t+e

/oern3ents s)ppl* allocation pro/ra33e /oes a+ead, its).is+i is li:el* to red)ce itssta:e in t+e project and co)ld een eit t+e ent)re alto/et+er5 T+e /oern3ent +oeer,appears read* 1or t+is eent)alit*5 T+e Antara nes a/enc* )oted 'alla as sa*in/, Kitill not .e a pro.le3 +et+er or not #t+e &apanese inestor% ill it+dra its inest3ent5Go a+eadK5 J+ile Indonesias oil and /as re/)lator B4IGA6 +as said it is no )p to t+eproject partners to deter3ine +et+er t+e on//i LNG ter3inal is still 1inanciall* ia.le,edco +as reiterated its co33it3ent to t+e project5 J+et+er t+e ter3inal ill .e droppedco3pletel* or not ill depend 1irst on +et+er t+e /oern3ent is prepared to accept aco3pro3ise s)ppl* allocation proposal, and second on t+e projected cost o1 re-/asi1ication 1acilities, +ic+ ill need to .e constr)cted i1 do3estic cons)3ers are to .es)pplied it+ LNG as opposed to nat)ral /as5 ;oeer, )nli:e its).is+i, .ot+4erta3ina and edco


17/22

Li)e1ied Nat)ral Gasedia reports s)//est t+at Indonesia as s)rpassed .* 8atar in 200 as t+e sin/le lar/esteporter o1 LNG5Indonesia is a leadin/ LNG eporter5 Indonesia as t+e orldMs lar/est eporter o1 LNG

in 200@, alt+o)/+ so3e reports s)//est t+at t+e co)ntr* as s)rpassed .* 8atar so3eti3ein 2005 )rin/ 200@, Indonesia eported 2? 3illion tons #t, or =,=2? Bc1% o1 LNG,or a.o)t = percent o1 t+e orld total5Indonesia prod)ces LNG 1ro3 to ter3inals! t+e Bontan/ 1acilit* in Bada:,


18/22

0: ND*NES!N N!T5R!L G!S 5)D!TE 3*R !)RL

S500!RY:


19/22

4erta3ina and 6in/aporeMs 6e3.Corp Gas 4te Ltd cele.rated t+e 1irst delier* o1 nat)ral/as on &an)ar* =@, eactl* one *ear a1ter si/nin/ a /as sales a/ree3ent #G6A%5 T+e G6Aproides 1or t+e s)ppl* o1 ?2@ 3illion standard c).ic 1eet per da* #33sc1d% 1ro3IndonesiaMs Jest Nat)na 1ields to &)ron/ Island and T)as, 6in/apore 1or a period o1 22*ears5 6e3.Gas +as a ta:e-or-pa* re)ire3ent +ile 4erta3ina is o.li/ed to inest in

speci1ied 1acilities to delier a 3ini3)3 o1 =2 *ears o1 /as +et+er or not it isecono3ical to do so5 6ales reen)e is projected to reac+ $6 " .illion oer t+e contractter35

T+e /as ill .e deliered 1ro3 t+ree prod)ction .loc:s Q- t+e Jest Nat)na 6ea Bloc: B,operated .* Conoco IndonesiaR t+e 'a:ap Bloc:, operated .* G)l1 Indonesia (eso)rcesRand Nat)na 6ea Bloc: A, operated .* 4re3ier Oil Nat)na 6ea Li3ited5 T+e t+reeprod)ction s+arin/ contractors #46CMs%, actin/ as t+e Jest Nat)na Gro)p #JNG%,partnered it+ 4erta3ina to 1or3 t+e Jest Nat)na Gas Consorti)3 #JNGC%5 JNGCinested $6 =5@ .illion to constr)ct t+e Jest Nat)na Transportation 6*ste3, a @-:ilo3eter )nderater pipeline s*ste3 it+ si distinct parts and one o1 t+e lon/est

)nderater pipelines in t+e orld5 T+e pipeline +as a c)rrent capacit* o1 700 3illionstandard c).ic 1eet per da* it+ t+e capacit* to epand to one .illion standard c).ic 1eetper da* it+ additional /as co3pression5

)ertamina to Export South Sumatra Gas

Indonesia and 6in/apore concl)ded anot+er /as sales a/ree3ent Fe.r)ar* =2 in +ic+4erta3ina co33itted to s)ppl* nat)ral /as to Gas 6)ppl* 4te Ltd5, a 6in/apore 4oers).sidiar*, ia a @00-:ilo3eter pipeline t+at 3)st .e operational in ?0 3ont+s5 $nder t+eter3s o1 t+e 20-*ear contract, 4erta3ina ill start sellin/ /as to 6in/apore in 3id-200? at=@0 3illion c).ic 1eet per da* #33c1d% steppin/ )p to 2@0 33c1d .* 20095 At c)rrent

prices, t+e project ill /enerate $6 9 .illion dollars in /as sales reen)e oer its 20-*earli1e, +ile sales o1 associated condensate and li)e1ied petrole)3 /as #L4G% co)ld .rin/in anot+er $6 D .illion5 T+e /as ill .e s)pplied 1ro3 t+ree 1ields in 6o)t+ 6)3atra Q-t+e &a.)n/ Bloc: operated .* 6anta Fe, a s).sidiar* o1 O:la+o3a-.ased eon


20/22

A s).sea pipeline ill delier /as to t+e 4etronas )*on/ o11s+ore /as 1acilit* .* A)/)st2002 at a rate o1 =00 3illion c).ic 1eet per da*, ra3pin/ )p to a 1)ll ol)3e o1 2@033c1d .* 20075 Conoco Indonesia #D0 percent%, &apanese 1ir3 Inpe #?@ percent%, andTeaco #2@ percent% are partnered in t+e Bloc: B prod)ction s+arin/ contract5 Conocoand its partners ill spend $6 25@ .illion to deelop Bloc: B 1)rt+er .* constr)ctin/

3ajor prod)ction plat1or3sR a 9-:ilo3eter s).sea pipelineR a 1loatin/ prod)ction,stora/e, and o11ta:e #F46O% esselR and a li)e1ied petrole)3 /as 1acilit*5 #Note! JestNat)na Bloc: B +as anot+er 05@ TCF o1 )nco33itted /as reseres aaila.le 1or 1)rt+ereploitation in addition to t+e 4etronas and 6e3.Corp sales5%

Ninth LNG Train to be ,uilt Soon-

Indonesia +as adanced plans to .)ild a nint+ LNG train #train I% at t+e Bontan/ LNGplant in


21/22

T+is s)ccess is a tri.)te to t+e close co-operation t+ro)/+o)t its deelop3ent .eteen Tan//)+&oint >ent)re 4artners and t+e Goern3ent o1 Indonesia, re/)lators, partners, contractors andpartic)larl* local co33)nities in 4ap)a5T+e project ill no 3oe 1ro3 project deelop3ent to t+e operations p+ase, and contin)e to1oc)s on sa1el* and relia.l* delierin/ IndonesiaMs /as reso)rces to 3ar:ets across t+e orld 1ordecades to co3e5

Tan//)+, IndonesiaMs t+ird LNG centre a1ter Bontan/ and Ar)n, co3prises t+e deelop3ent o1si /as 1ields in t+e Jiria/ar, Bera) and )t)ri prod)ction s+arin/ contracts in t+e Bint)ni areao1 4ap)a Barat in eastern Indonesia5 Gas prod)ced 1ro3 to nor3all* )n3anned o11s+oreplat1or3s is 1ed ia 22- :ilo3etre pipelines to to ons+ore li)e1action trains, eac+ it+ aprod)ction capacit* o1 ?5" 3illion tonnes a *ear o1 LNG5 Train = .e/an LNG prod)ction in 3id-&)ne, prod)cin/ t+e LNG 1or t+e 1irst car/o, and Train 2 is epected to co33ence t+is )arter5Tan//)+ is operated .* B4 Indonesia, it+ a ?75= per cent interest, as a contractor to t+eIndonesian oil and /as re/)lator, B4IGA65 Ot+er partners in t+e project are I Bera) B5>5#=5? per cent%, CNOOC Ltd5 #=?59 per cent%, Nippon Oil


22/22

S T+e Tan//)+ project +as adopted a 1)ll* inte/rated approac+ to deelop3ent and its i3pacton local co33)nities5 A ide ran/e o1 inte/rated social pro/ra33es +ae .eeni3ple3ented, incl)din/ a co33)nit* .ased approac+ to sec)rit* and a co33it3ent to3ai3ise t+e e3plo*3ent opport)nities 1or local people d)rin/ .ot+ t+e constr)ction andt+e s).se)ent operatin/ p+ases5 Actiities are ta:in/ place at all leels, 1ro3 speci1ic

pro/ra33es in t+ose illa/es closest to t+e project site to ider initiaties across t+eBirdMs ;ead re/ion and t+ro)/+o)t 4ap)a5

S T+e Tan//)+ 4roject +as also set ne standards in transparenc* and +as 3ade reports 1ro3eternal panels s)c+ as TIA4 and t+e

96844_Indonesia LNG.doc

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