NATURAL GAS PERSPECTIVE · PT Perusahaan Gas Negara Tbk 2016 - 2019 Director of Infrastructure and Technology PT Perusahaan Gas Negara Tbk ... challenging goals an objectives ...

NATURAL GAS PERSPECTIVEON ENERGY SYSTEM TRANSITION

IN SUPPORTING 4.0 ERA OF ELECTRICAL POWER TECHNOLOGY

Hari Listrik Nasional 2019 | October, 10th 2019

JCC - Jakarta, Indonesia

Dilo Seno Widagdo

Director of CommercePT Perusahaan Gas Negara

2019 – now Director of Infrastructure and TechnologyPT Perusahaan Gas Negara Tbk

2016 - 2019 Director of Infrastructure and TechnologyPT Perusahaan Gas Negara Tbk

2013 - 2016 Direktur UtamaPT PGAS Solution

2011 - 2013 Chief Operating OfficerPT Sarana Global Indonesia

2008 - 2011 Project DirectorPT Ketrosden Triasmitra

2004 - 2008 Chief Executive OfficerPT Guna Arti

2001 - 2004 Marketing and Business Development DirectorPT Anyar Katon

“ PERSONALITY “

Born in Jakarta April 3rd 1969Moslem and Married with two daughter and son

Hard Working and Highly Motivated PersonAble to effectively manage multiple projects simultaneously

“ OVERVIEW “

More than 20 Years experience in Engineering, Procurement, Construction as Project Management, with a successful record on working on small/large size project

Qualified and competent professional recognized to bring companies meet challenging goals an objectives

“ EDUCATION “

1991Bachelor of Mechanical Engineer

Trisakti UniversityJakarta - Indonesia

2001Magister Management International

Prasetya MulyaJakarta - Indonesia

“ WORK EXPERIENCES“

Today’s Outline

01PGN shareholders and scope of business within Indonesia archipelago

PGN as Gas Subholding Company

02Downstream gas industry to support energy (gas) transition in Indonesia

PGN's journey in providing natural gas in Indonesia

03Mutual benefits oF using natural gas

Existing And Upcoming Collaboration

04What PGN has accomplished in supporting “Indonesia Terang” program and collaboration plan towards national electrification initiative

Joint Planning

PGN as Gas Subholding Company

public100% 56,96% seri B + Golden Share

43,04%

100%

public100%

1 pcs Golden Share

43,04%

51%

56,96%

seri B

Stand Alone SOE Oil & Gas Holding Co – Gas Subholding Co

▪ 56.96% of GOI B-Series shares in PGN transferred into a state-

participation shares in Pertamina. GOI still posses one A-Series

shares with special privileges. As a result, PGN are officially

became the Gas Subholding part of Pertamina as the Oil & Gas

Holding Company

▪ Performing consolidation to all Pertamina subsidiaries engaged in

natural gas business (Pertagas Group) to be engaged as PGN’s

subsidiary and PGN is given the role as a Subholding Gas (Gas

Co.)

▪ On December 28th, the integration process of Pertagas and its

subsidiaries marked by the transfer of 51% shares owned by

Pertamina in Pertagas to PGN

Business Scope of Gas Subholding

49%

Sourcing

ExecutionTransmission Distribution

Retail and

Trading

Storage and

ProcessingGas Utilities Support Others

Sourcing

Strategy

Business Coverage and Infrastructure

Pipeline Network Distribution 5.233 km

Transmission 4.444 km

▪ Land based LNG Arun

▪ 2 FSRU (Lampung dan Jawa Barat)

▪ 4 MRU (DKI, Gresik, Bandung)

▪ 1 Cluster CNG (Jateng)

▪ 66 Gas Fueling Station (DKI, Bogor,

Sukabumi, Purwakarta, Surabaya, Batam,

Lampung)

Non-Pipe Gas Infrastructure

Balikpapan

Tarakan

Sorong

1

2

3

4

▪ West Java, DKI Jakarta, Lampung,

South Sumatra and Banten

▪ East Java and Central Java,

North Kalimantan and Papua

▪ North Sumatra, Riau and Kepulauan

Riau

Distribution Area

Investing participating interest in PSC and operating oil and gas blocks to support Indonesia production and lifting

Upstream Business Taking business opportunities along the natural gas value chain; LNG, CNG, related gas business services, fiber optic and asset management

Other Supporting Business

Distribution Business Buying and selling gas to customers through pipeline infrastructure in three main areas in West Java, East Java and North Sumatera.

Transporting gas of customers; suppliers or off-takers through pipeline. The pipeline can also be function as the backbone to distribution pipeline.

Transmission Business

▪ Operating in 4 Major Coverage Area, 55

cities and regencies (14 provinces) in

Indonesia

▪ Transporting and Distributing Gas ±3,527

MMSCFD

Downstream Business

▪ Developing ± 9.677 km length pipeline

network, 2 unit FSRU, 66 Gas Fueling

Station, 4 MRU (Coverages ± 96% all

Indonesia Gas Infrastructure)

Gas Infrastructure

▪ Total assets 13 blocks (6 blocks in

operation, 7 blocks in exploration)

▪ Oil and gas lifting ±40,602 BOEPD

Upstream Business

Transmission Pipeline (Major)

Grissik – Duri & Grissik – Singapore

South Sumatra – West Java (SSWJ)

Kalimantan – Java (Kalija)

East Jawa and Gresik – Semarang

Arun - Belawan

1

2

3

4

4

Natural Gas Transition

1859

PIPELINE GAS ERA

Artificial gas from coal (kokas)

Nationalization of Dutch companies

LNG for domestic use

Distribution pipes are limited to households and public street lighting

2019

Separation of entities which manage electricity and gas (coke)

19841965

Initial natural gas distribution (Cirebon, Jakarta, Bogor, Medan, Surabaya, Medan)

2012

LNG UTILIZATION ERA WHAT NEXT

Pioneered the Indonesia gas industry (LJN Eindhoven & CO Gravenhage)

First LNG storage and regasification unit

Business expansion, act as transporter via natural gas transmission pipeline

1994

FOCUS OF GAS SECTOR

• BBM to gas for refinery, transportation, smelter, city gas

• Acceleration of access-to-gas into new area

• Increase gasification ratio

• New technology for gas transportation (mini LNG, offshore/onshore transportation)

ARTIFICIAL (COAL TO GAS) ERA

ENVIRONMENTAL FRIENDLY ENVIRONMENTAL FRIENDLY

Why Natural Gas?

Source : https://www.aga.org

Natural Gas is:

Cleanest Clean energy sources

Less pollution Higher conversion

Less Chemical Less Water Consumption

PGN CONTRIBUTION IN DELIVERING GAS TO POWER

Since [yyyy] PGN has proven to be able to provide clean energy sources for domestic

power generation needs that are

competitive and environmental friendly

FSRU JAWA BARAT

• Regasification capacity : 500 MMSCFD.

• LNG Suppliers : Mahakam PSC and

Tangguh PSC

• Offtaker : PLN Muara Karang and

Industries

• LNG Volumes in 2018 : 37 Cargos

• Located in Jakarta Bay

LNG for Power Plant

• Regasification design capacity : 405 MMSCFD.

• LNG Suppliers Bontang, Tangguh, Donggi

Offtaker : PLTMG Arun, Belawan PT PGN Tbk

• Located in Arun, Aceh

• Regasification capacity : 240 MMSCFD.

• LNG Suppliers : Bontang and Tangguh

• Offtaker : PT PGN Tbk (TUA)

• LNG Volumes in 2018 : 2 Cargos

FSRU LAMPUNG

LNG REGASIFICATION TERMINAL - ARUN

Added value in joint planning

New LNG infrastructure for power generation positioned as:

• supporting growth outside Java

• serving small and scattered demand

• suitable for small scale LNG application

5 ADDRESSING FUTURE NEEDS (Gas to Power)

AN ARCHIPELAGO ECONOMY

• A geographical mismatch between demand and supply gives ways for LNG project to balance the market.

• PGN supports the Government's initiatives to increase domestic LNG utilization in existing market and utilizes LNG hub as a gateway to

creates new market in Central and Eastern Indonesia.

Most LNG Projects in Indonesia are categorised as SMALL SCALE LNG (2-195 MMSCFD), more than 30 LNG Terminals

East Java LNG Terminal (small hub)

DEMAND LOCUS SUPPLY LOCUS

CLOSING REMARKS

1. Indonesia has started using gas (artificial coal-to-gas: ‘kokas’) since the mid-18th century

which was initially used for households and street lighting.

2. After the era of kokas and the separation of electricity and gas entities, PGN initiate the

utilization of natural gas via distribution and pipeline in several big cities in Indonesia that

mark the pipeline gas era.

3. To be able to fulfill the natural gas in Indonesia’s archipelago and to support the

government initiatives in natural gas for domestic use, Indonesia began to exploit natural

gas in form of LNG which mark the LNG era in 2012

4. Natural gas is the most cleanest fossil fuel with high efficiency in power generation and

able to support optimal benefit for the environment and could be use as a transition

towards environmental friendly source of energy.

Thank You

A Member of Pertamina

Contact:PT Perusahaan Gas Negara TbkMid Tower Manhattan Square 28th FloorPhone: +62 21 8064 1111

How Big is PGN Infrastructure?

Household

RT

Commercial and Large

Enterprise

IJK

Industry Manufacturing and

Power Generation

IPP

Small and Medium Ent.

PK

322.073 Customer 1.470 Customer

1.722 Customer498 Customer

Gas Subholding Controls and Operates 96% of The Total Gas Infrastructure in Indonesia

2

Natural Gas for Electricity in Greater Jakarta

• Nusantara Regas operates FSRU JawaBarat at Jakarta Bay with LNG supplies from Tangguh LNG, Bontang LNG where the LNG regasification took place in the FSRU and then supplies the gas to IPP PJB Muara Karang and IPP IP Priok.

4

Own and Operate FSRU Facilities in Jakarta Bay, Lampung

FSRU Lampung

Capacity 240 MMSCFD

FSRU Jawa Barat

Capacity 500 MMSCFD

SSWJ Pipeline

Capacity 600 MMSCFD

4

Arun

Regasification

Terminal

Capacity 405

MMSCFD

PLN Belawan

PLTMG Arun

Gas Volume

32 MMSCFD Transmission Pipeline

Arun – Belawan 24”

350 Km operated by PT

Pertagas

Contact

Commitment

95 MMSCFD

Regasification

Agreement 105

MMSCFD between

PAG dan PLN

Natural Gas for Electricity in Arun and Belawan

LNG SPA

LNG Carrier

Tangguh LNG

Source Perta Arun Gas Website

Bontang LNG

4

LNG filling

stationRoad transportation

(Trucking & Train)

Marine transportation

(cargo, LCT, barges)

Source Transportation Market

Big - Medium Medium - Small

LNG for industry

LNG for mall/hotel/apartment

LNG cylinder

LNG for laundry

LNG for workshop

LNG Vessel

LNG Plant

LNG for Power Plant / IPP

Natural Gas Utilization Through Small Scale LNG

Why Natural Gas?

Jakarta is among the most polluted city in the world – July 2019 (AirVisual)

Blackout risk mitigation

▶PLTG has the advantage in cold start-up time

▶Multi source and multi destination of pipeline gas that offers reliability and flexibility

▶Collaboration with PLN and IPP to support conversion to gas-fired power generation

▶ Gas power plant has less air pollution

than coal power plant

Advocation to

government,

KLH, etc

Education

through

society &

university

Campaign

and social

media

Promotion

of clean

energy

Natural Gas is the environmentally friendly source of energy to generate clean

electricity.

PGN as the Gas Subholding will be a major player in developing the Gas Industry in

Indonesia and committed to develop natural gas infrastructure in Indonesia in order

to support the Industries and Electricity.

Closing Remarks6

PGN Mid-Term Development Plan

Mid Term Infrastructure Development Plan:

3.59 Mio City Gas

500 km Distribution pipeline

528 km Transmision pipeline 5 FSRU / Landbased

7 New LNG Filling Station for Trucking and Marine Sector

17 Mini LNG Facility for PLN / Retail

Bangka

Benoa

Pomala

Sorong

Donggi-Senoro

Jayapura

Biak

Dumai

Nabire

Manokawari

Bitung

KupangWaingapu

MaumereNTTBimaSumbawa

Lombok

Gorontalo

Palu

Grissik

Pekanbaru

Cilacap

BatamDuri

Lampung

Jakarta

CirebonSemarang

Kuala TanjungSei. Mangke

Pontianak

Banjarmasin

Kutai

Balikpapan

Medan

Arun

Makasar

Surabaya

Belitung

Tarakan

Samarinda

Musi Banyu Asin

Penajam

Palembang

Transmisi Lengo (Kriss Energy)

Transmisi Cirebon Semarang

Transmisi Kilang Balikpapan

Transmisi Kilang Tuban

Transmisi Simenggaris Bunyu