PGN Business Presentation

Perusahaan Gas NegaraPerusahaan Gas NegaraAugust 2008August 2008

AGENDAAGENDA

II.. PGN’s Overview & The Year in ReviewPGN’s Overview & The Year in Review

II.II. Indonesian Gas IndustryIndonesian Gas Industry

i ii iIII.III. Business Review Business Review 

IV.IV. Project ProgressProject Progressj gj g

V.V. OOperational and Financial Resultsperational and Financial Results

VI.VI. Future PlanFuture Plan

I.I. PGN’s Overview & Recent PGN’s Overview & Recent UpdateUpdate

PGN’s OVERVIEWPGN’s OVERVIEW

• A national leading gas transmission and distribution company.  

• Engaged in domestic downstream natural gas business to provide natural gas for industrial, commercial and household customers.

• As of Q1 2008, PGN control 87% market share of transmission business and 93% of distribution.

A f Q1 2008 716 39 MMS fd f t l t t d th h t i i• As of Q1 2008, 716.39 MMScfd of natural gas were transported through transmission pipeline and  526.64 MMScfd gas sold  to domestic customers using distribution network.

• Listing on JSX and SSX (now Indonesia Stock Exchange), known as PGAS, on DecemberListing on JSX and SSX (now Indonesia Stock Exchange), known as PGAS, on December 15, 2003 with IPO price of IDR 1,500 per share. 

• The Republic of Indonesia owns 55% of shares while  Public  holds 45%  of shares.

• On August 4, 2008, PGN’s market capitalization was IDR 48.8 trillion (USD 5.4 billion), g , , p ( ),ranked 9 among top ten listed companies and ranked 4 among top ten listed SOE, in Indonesia Stock Exchange.

• PGAS exercised a 5:1 ratio stock split (Closing Price at Rp.2,125) on August 4, 2008.

11

RECENT UPDATERECENT UPDATE

South Sumatra West Java (“SSWJ”) Gas Pipeline Project

Pagardewa – Labuhan Maringgai – Bojonegara and Labuhan Maringgai – Muara Bekasi gas pipelinesections have been in operation since March and July 2007. Grissik – Pagardewa gas pipeline sectionh b i ti i O t b 2007has been in operation since October 2007.

Pagardewa Compressor Station is in operation since April 2008.

Currently, the South Sumatra West Java (the system) gas pipeline is capable to transport gas up to470 MMScfd.

The 463 km of West Java Main Gas Distribution Pipeline is scheduled to complete in 2009. Going forward,the gas distribution expansion will be adjusted in line with the market demand.

New gas supply and sales agreements.

A 50 MMScfd Head of Agreement signed with ConocoPhillips to supply gas from Ketapang block forg g p pp y g p gEast Java network. The gas delivery is scheduled to start in 2011 with 5 years contract period.

150 MMScfd firm basis and 100 MMScfd interruptible basis Gas Sales Agreement with PLN signed inApril 2008 for 3 years. These new gas contracts are an addition to the previous 50 MMScfd firm basisGas Sales Agreement signed in July 2007 for 5 years period. The gas will be used for PLN power plantg g y y p g p pin Muara Tawar.

11.75 million ton LNG supply MoA, from Mahakam Blok PSC, signed by Total E&P Indonesie‐INPEXCorporation and PGN LNG consortium in July 2008.

22

IIII. .  Indonesia Gas IndustryIndonesia Gas Industry

INDONESIAN GAS MARKET OVERVIEW INDONESIAN GAS MARKET OVERVIEW • Indonesia has the largest proven natural gas reserves in Asia Pacific

– As of Jan 2007, proven gas reserves in Indonesia were 106.01 trillion cubic feet and potentialgas reserves in Indonesia were 58.98 trillion cubic feet

Th t i i d di t ib ti i f t t h i ifi t l i th d ti i d t• The transmission and distribution infrastructure has a significant role in the domestic gas industry

– Majority of the gas reserves are located in Sumatra and Kalimantan, far away from the fuel‐consuming, industrial areas like Java

– Natural gas utilization (export and domestic) has reached 2.71 TSCF in 2007 and is expected toincrease going forward. This rising trend would require a further expansion of the nation’spipeline network.Indonesian Gas Reserves as of 1 Jan 2007

Proven = 106.01 TSCF 

Gas Reserves (TSCF)

33

Potential = 58.98 TSCF 

Total = 164.99 TSCF 

Source: BPH Migas

POTENTIAL  SHIFT FROM OIL TO GAS CONSUMPTION POTENTIAL  SHIFT FROM OIL TO GAS CONSUMPTION • Primary energy consumption in Indonesia has reached 11.8 BScfd in 2006• Oil contribution in total energy consumption continue to decline due to the

surging oil price and the reduction of oil subsidies in Indonesia– Indonesian government reduced the oil subsidies in October 2005 and

May 2008. As a result, the subsidized HSD price has jumped from

Indonesia’s Primary Energy Consumption by Energy Type 

May 2008. As a result, the subsidized HSD price has jumped fromUSD 5.84/MMBtu in September 2005 to USD 16.37 /MMBtu in May2008, representing a price increase of more than 100%

– Gas has a strong price advantage against oil and the oil‐related subsidyreduction resulted in a major industry shift from oil to gas consumption

– The new gas transmission pipeline is predicted to accelerate the shiftfrom oil to gas consumption

Source: BP Statistical Review of World Energy 2007

Relative Energy Price (as of July 15, 2008) PGN Gas Price Vs HSD Price

US$/MMBtu

33.51

21.2

33.7

35.2

36.2

33.0

Gasoline (subsidized)

Diesel (non‐subsidized)

HSD (non‐subsidized)

Kerosene (non‐subsidized)

Gasoline (non‐subsidized)

20.00

30.00

40.00

5.49

16.84

7 8

13.0

20.9

16.8

18.1

Kerosene (subsidized)

LPG (subsidized)

MFO (non‐subsidized)

HSD (subsidized)

LPG (non‐subsidized)

8/1/2008

0.00

10.00

20.00

1/31/2002 9/23/2003 5/15/2005 1/5/2007

44Source: Pertamina

5.5

7.8

0 5 10 15 20 25 30 35 40

Distributed Gas 

Kerosene (subsidized)

USD / MMBtu

Note: based on crude oil price of USD 124/barrel

HSD Subsidized Price (US$/MMBtu)HSD Unsubsidized Price (US$/MMBtu)PGN Average Sales Price (US$/MMBtu)

INDONESIAN GAS INDONESIAN GAS MARKET OUTLOOKMARKET OUTLOOK

Contracted, Committed and Potential Gas Supply & Demand for Major Regions in Indonesia

S o u rc e : D irje n M ig a sR E G I I (N O R T H S U M A T E R A )R E G I I (N O R T H S U M A T E R A )REG II (NORTH SUMATERA)

Year 2007 2009 2011

M e d a n

-1 1 8 .7-1 9 2 .2-1 8 3 .5B a la n c e

2 1 9 .72 1 9 .72 1 8 .5D e m a n d

1 0 12 7 .53 5S u p p ly

2 0 1 12 0 0 92 0 0 7Y e a r

-1 1 8 .7-1 9 2 .2-1 8 3 .5B a la n c e

2 1 9 .72 1 9 .72 1 8 .5D e m a n d

1 0 12 7 .53 5S u p p ly

2 0 1 12 0 0 92 0 0 7Y e a rYear 2007 2009 2011

Supply 35 27.5 101

Demand 481.5 526.7 535.7

Balance -446.5 -499.2 -434.7

G r is s ik

D u r i

D u m a i

M e d a n

K A L IM A N T A N

SUMATERA S U L A W E S I

IR I A N J A Y A

J a k a r ta

P a g a r d e w a

J A W A

R E G IV (C E N T R A L J A V A )R E G IV (C E N T R A L J A V A )R E G II I (C E N T R A L , S O U T H S U M A T E R A & W E S T J A V A )R E G II I (C E N T R A L , S O U T H S U M A T E R A & W E S T J A V A ) 9 6 3 .77 4 7 .35 6 5 .4D e m a n d

8 2 1 .97 9 4 .84 1 9 .8S u p p ly

2 0 1 12 0 0 92 0 0 7Y e a r

R E G V (E A S T J A V A )

9 6 3 .77 4 7 .35 6 5 .4D e m a n d

8 2 1 .97 9 4 .84 1 9 .8S u p p ly

2 0 1 12 0 0 92 0 0 7Y e a r

R E G V (E A S T J A V A )

REG III (CENTRAL, SOUTH SUMATERA & WEST JAVA) REG IV (CENTRAL JAVA)

REG V (EAST JAVA)

Year 2007 2009 2011

Supply 419.8 794.8 981.9

Demand 926.4 1,155.3 1,351.7

2-2 6-1 4 2 .3B a la n c e

1 9 31 9 5 .71 4 3D e m a n d

1 9 51 6 7 .90 .7S u p p ly

2 0 1 12 0 0 92 0 0 7Y e a r

( )

2-2 6-1 4 2 .3B a la n c e

1 9 31 9 5 .71 4 3D e m a n d

1 9 51 6 7 .90 .7S u p p ly

2 0 1 12 0 0 92 0 0 7Y e a r

( )

-7 9 1 .3-7 2 9 .7-5 6 7 .8B a la n c e

3 4 9 1 .83 4 9 1 .72 9 8 1 .6D e m a n d

2 7 0 0 .52 7 6 1 .92 4 1 3 .8S u p p ly

2 0 1 12 0 0 92 0 0 7Y e a r

-7 9 1 .3-7 2 9 .7-5 6 7 .8B a la n c e

3 4 9 1 .83 4 9 1 .72 9 8 1 .6D e m a n d

2 7 0 0 .52 7 6 1 .92 4 1 3 .8S u p p ly

2 0 1 12 0 0 92 0 0 7Y e a r -1 4 1 .7-4 7 .6-1 4 5 .6B a la n c e -1 4 1 .7-4 7 .6-1 4 5 .6B a la n c eYear 2007 2009 2011

Supply 2,413.8 2,761.9 3,100.5

Demand 3,557.6 4,408.6 4,467.3

Balance -1,143.8 -1,646.7 -1,366.8

Year 2007 2009 2011

Supply 0.7 167.9 195.0

Demand 198 256.3 259.9

Balance 197 3 86 6 64 9

, ,

Balance -506.6 -360.4 -369.7

55

, , , Balance -197.3 -86.6 -64.9

IIIIII. .  Business Business ReviewReview

PGN’s EXISTING BUSINESSPGN’s EXISTING BUSINESS

• PGN has a dominant market position in gas distribution and transmission in Indonesia• The SSWJ Project will provide greater control over volumes delivered to the distribution business and

generate stable earnings from the transmission volume

Gas PurchaseGas Purchase

m

PGNDistribution

SSWJ

PGNDistribution

SSWJ

• Retail & Industry 

Customers

• IPP

• Retail & Industry 

Customers

• IPP

Sales (GSA)GSPAGSPA

Upstream

• SSWJ  (PGN)• Grissik – Duri (TGI)

IPPIPP

PGNT i i

PGNT i i

• Chevron• ChevronGTAGTA

TransportationTransportation Singapore (TGI)( )

• Grissik – Singapore (TGI)TransmissionTransmission • Singapore• Singapore

Gas Supply for Distribution Business Distribution – Sale of Gas to End User TTransmission – Transport Third Party’s Gas

• Gas Transmission Contract (GTA)– Long-term contract– Minimum ship-or-pay volumes– Tariffs in US$

• Gas Transmission Contract (GTA)– Long-term contract– Minimum ship-or-pay volumes– Tariffs in US$

• Gas Sales & Purchase Agreement (GSPA)

– Long-term contract– Take-or-pay volumes

• Gas Sales & Purchase Agreement (GSPA)

– Long-term contract– Take-or-pay volumes

• Gas Sales Agreements (GSA)– Minimum pay volumes– Price in US$ & IDR

• Gas Sales Agreements (GSA)– Minimum pay volumes– Price in US$ & IDR

66

– Fix price in US$– Fix price in US$

EXISTING TRANSMISSION NETWORKEXISTING TRANSMISSION NETWORK• PGN and its 60%-owned subsidiary TGI operate transmission pipelines with a total length of 1,074km and a

combined capacity of 869 mmscfd. After completion of the SSWJ Project, the capacity will increase to 1,839 mmscfd, representing an increase of more than 100%

Grissik – SingaporeCapacity = 364 mmscfd

PLN – MedanCapacity = 80 mmscfd

Duri

Medan Grissik – Pagardewa – Labuhan Maringgai – Muara Bekasi – Rawamaju (SSWJ II)Capacity = 440 mmscfd

Grissik

Pagardewa

KALIMANTAN

SULAWESI

PAPUA

Grissik – Duri

JakartaJAWA

Capacity = 425 mmscfd

Pagardewa – Labuhan Maringgai – Cilegon (SSWJ I)Capacity = 530 mmscfd

77

EXISTING DISTRIBUTION NETWORKEXISTING DISTRIBUTION NETWORK

• PGN has developed an extensive distribution network covering 9 major cities in Indonesia• The network and facilities are managed by three SBUs – West Java (SBU I), East Java (SBU II) and Sumatra (SBU III)• Household selling price increased by 60%, in December 1, 2007, to USD 7.53/MMbtu.• Industrial selling price increased by 9.73%, in August 1, 2007, to USD 5.49/MMBTU.g p y , g , ,

Medan – SBU IIICapacity = 46 mmscfdCapacity = 46 mmscfd

Batam – SBU IIICapacity = 75 mmscfd

PAPUA

Surabaya & Surrounding – SBU II

Pekanbaru – SBU IIICapacity = 65 mmscfd

Palembang – SBU IC it 4 fd

Bekasi + Karawang – SBU IC it 70 fd

KALIMANTAN

SULAWESI

Cirebon – SBU ICapacity = 8 mmscfd

Capacity = 230 mmscfd

Jakarta + Bogor – SBU ICapacity = 175 mmscfd

Capacity = 4 mmscfd

Banten – SBU ICapacity = 79 mmscfd

Capacity = 70 mmscfd

JAWA

Capacity 8 mmscfdCapacity 175 mmscfdTotal Capacity : 752 MMScfd

Total Length : 3,212 km

88

STRONG DISTRIBUTION CUSTOMER BASESTRONG DISTRIBUTION CUSTOMER BASE

• Industrial customers continue to dominate PGN’s customer base and drive PGN’s distribution business growth. As of March 31, 2008, sales volume of industrial customers was 519 MMScfd or equal to 98 6% of PGN’s salesMMScfd or equal to 98.6% of PGN s sales.

Q1 2008 I d t i l C t C ti2007 I d t i l C t C ti Q1 2008 Industrial Customer Consumption 2007 Industrial Customer Consumption

Chemical 18%

Power Plant 20%

Chemical 10%

Power Plant 21%

Textile 4%

Food 8%

Ceramic 16%

Textile 5%

Food 9%

Ceramic 12%

Fabric Metal 6%

Fabric Metal 3%

Basic Metal 5%

Glass 6%

Others 9%

Basic Metal 8%

Glass 9%

99

Glass 6%

Paper 13%

Paper 9%

Wood 2%

PGN’s MARKET SHAREPGN’s MARKET SHARE

Q1 2008 DistributionQ1 2008 Transmission

PGN 87% Pertagas 13% PGN 93% Manggala 1%

Bayu Buana 1% Rabana 1%

Sadikun 1% EHK 2%

Banten Inti Gasindo 1%

1010

VOLUME PROJECTIONVOLUME PROJECTION

((MMScfdMMScfd))

Distribution 2008E

SBU I 380

SBU II 144SBU II 144

SBU III 76

Total 600

Transmission 765Note :- 2008 average Distribution volume includes potential new contracts of 200 MMScfd with PLN

1111

g pwhich is expected to start flowing the gas in the mid of August 2008.

IVIV. .  Project ProgressProject Progress

SSWJ PROGRESS & KEY MILESTONESSSWJ PROGRESS & KEY MILESTONES

Pagardewa – Labuhan Labuhan Maringgai – Muara Pagardewa Gas Compressor was

The overall SSWJ Project is expected to be completed by Oct 2008 with the completion of the Pagardewa-Labuhan Maringgai parallel line. The total capacity of SSWJ is expected to be 970 MMScfd

March 2007 July 2007 October 2007 –Completion of SSWJ II

March 2008 October 2008 –Completion of SSWJ I

Maringgai –Bojonegara sections were completed and

commenced operation

Bekasi section was completed and gas flow from Pertamina began. The gas pipelines can transport 230 mmscfd of gas from South Sumatra to West

Java

Grissik-Pagardewasection was

completed and gas flow from Conoco

Phillips began

completed and will maximize the flow rate of gas from Conoco Phillips and Pertamina. The

compressor will increase the total capacity from 230 mmscfd to approximately 470 mmscfd

Pagardewa-Labuhan Maringgai Parallel Line section is expected to

be completed

230 MMScfd 470 MMScfd 970 MMScfd 230 MMScfd Transmission Capacity:

ConocoPhillips ConocoPhillips Gas PlantGas Plant

Latest status (as of July 29, 2008):- Cleaning & gauging (KP4 to KP271), hydrostatic test (KP4 to KP271), sectional valves installation, future connectionsinstallation, drying, nitrogen purging and mechanicalcompletion were completed

Pertamina Gas Pertamina Gas PlantPlant

completion were completed.

- Target for commissioning: end of August 2008

- Construction progress : 99 %

- Overall progress (including material) : 99.6%

Operated

- Target for completion : October 2008

Parallel LinePagardewa Compressor

1212

WEST JAVA DISTRIBUTION EXPANSION WEST JAVA DISTRIBUTION EXPANSION 

• PGN is expanding its distribution

The West Java Distribution Expansion Project with 463km main pipelines commenced in 2005. The project aims to distribute the gas from SSWJ and is expected to be fully completed in 2009

The West Java Distribution Expansion Project with 463km main pipelines commenced in 2005. The project aims to distribute the gas from SSWJ and is expected to be fully completed in 2009

p gnetwork in Jakarta, Bekasi, Cikampek, Bogor, Banten and the surrounding areas

• The expansion started in 2005 and is

Palembang

The expansion started in 2005 and is scheduled to reach completion in 2009. The Project will expand the distribution network in West Java by 463 km in line with increasing gas volume transported from South Sumatra.

Karawang

Lampung

Bekasi

• After completion PGN total distribution capacity will reach +1,500 MMScfd.

Th j t i f d d b W ld B k i

BantenBogor Cirebon

• The project is funded by World Bank via IBRD (USD 80 million) and PGN’s internal cash flow

1313

WEST JAVA DISTRIBUTION PROGRESS & KEY MILESTONESWEST JAVA DISTRIBUTION PROGRESS & KEY MILESTONES

Distribution mainline for Bitung-

Batu Ceper was

Distribution mainline for Bitung-Batuceper

and distribution

Sept 2007 Dec 2007Aug 2007Distribution mainlines for

Rawamaju-Kalimalang-Kedep-Pondok Ungu and Rawamaju

Distribution mainlines for

Mar & Jun 2008

Oct 2008 – Pipeline Completion of World Bank

Packages Feb 2009 – PipelineBatu Ceper was

partially completed and commenced

operations to strengthen the

existing network

and distribution branchlines for Banten, Bogor, Jakarta, Bekasi

and Karawang are expected to complete

by Dec 2007

Pondok Ungu and Rawamaju-Walahar were partially

completed and commenced operations. The pipelines

received gas from SSWJ to PGN’s existing and new

customers

Banten and Greater

Jakarta are expected to

complete

Feb 2009 Pipeline Completion of PGN

PackagesDec 2009 – Completion of Bojonegoro-Serpong transmission mainline

*

1414

PROJECTED CAPEXPROJECTED CAPEX

j 2008

(Million USD)

Project 2008E

Transmission  163.7

Distribution 103.0

LNG 0.9

Total 267.6

1515

VV. . Operational & Financial ResultsOperational & Financial Results

OPERATING PERFORMANCE HIGHLIGHTSOPERATING PERFORMANCE HIGHLIGHTS

Transmission Volume Distribution Volume

69%78% 84% 81% 82%

750

1,000

70%

90%

110%

46% 47%

56% 53%

70%

350

400450

500

60%

70%

80%

602 681 735 707 716250

500

mm

scfd

-10%

10%

30%

50%

308 323422

369

527

46% 47%

150200

250

300

mm

scfd

20%

30%

40%

50%

0

250

2005 2006 2007 Q1 2007 Q1 2008-50%

-30%

-10%

Transmission Volume Transmission Utilization (RHS)

0

50100

2005 2006 2007 Q1 2007 Q1 20080%

10%

20%

Di t ib ti V l Di t ib ti Utili ti (RHS)Transmission Volume Transmission Utilization (RHS) Distribution Volume Distribution Utilization (RHS)

1616

FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS 

Revenue Trend

1,208

8,802

6,6327 0008,0009,000

10,000

39%

44%47% 52%

53%

40%

50%

4,000

4,500

5,000

EBITDA and EBIT Trend

4,2805,531

7,594

2863211,846

2,768

1,101

1,154

5,434

6,632

2,0003,0004,0005,0006,0007,000

In R

p. b

illion

s

2 1412,929

4,094

2,3933,082

20%

30%

40%

1 000

1,500

2,000

2,500

3,000

3,500

In R

p b

illio

ns

1,5602,447

286

01,0002,000

2005 2006 2007 Q1 2007 Q1 2008Distribution revenue Transmission revenue

2,141

9601,4721,552

,

809 1,125

0%

10%

0

500

1,000

2005 2006 2007 Q1 2007 Q1 2008

EBITDA EBIT EBITDA margin (RHS)

Net Income

1,500

2,000

s

Net Income

862

1,893 1,573

514 4360

500

1,000

Rp

. billio

ns

02005 2006 2007 Q1 2007 Q1 2008

In

1717

INCOME STATEMENT Q107 INCOME STATEMENT Q107 vsvs Q108Q108

2,768

(billion rupiah)

FX Gain/Loss

L Loss

1,846

LossRp 95 bio

Q1 2007

LossRp 211 bio

Q1 2008Forex as of :- 31 March 2007 US$ 1 = Rp. 9.118- 31 March 2008 US$ 1 = Rp. 9.217

960

1,472

1,125

31 March 2008 US$ 1 Rp. 9.217- 31 March 2007 JPY 1 = IDR 77.58- 31 March 2008 JPY 1 = IDR 92.27

960

295

809

514487 436295

Revenue EBITDA OperatingExpense

Operating Income Net IncomeExpense

Q1 2007 Q1 2008

1818

CONSOLIDATED BALANCE SHEETCONSOLIDATED BALANCE SHEET

(in billion Rupiah) 2007 Q1 2007 Q1 2008 %

Current Assets 3.715 2.860 4.498 57Non Current Assets 16.633 14,404 16.255 13

Total Assets 20.348 17.264 20.753 20

Current Liabilities 3.169 2.752 2.367 (14)Non Current LiabilitiesMinority Interest In Net Assets of a SubsidiaryGovernment Project Funds

10.015729

127

7.644732

127

10.293718

127

35(2)

-Total Shareholders Equity 6.308 6.009 7.248 21

Total Liabilities And Shareholders Equity

20.348 17.264 20.753 20

Forex as of :- 31 March 2007 US$ 1 = Rp. 9.118- 31 March 2008 US$ 1 = Rp. 9.217- 31 December 2007 US$ 1 = Rp. 9.419

1919

IVIV. . Future PlanFuture Plan

LNG RECEIVING TERMINALLNG RECEIVING TERMINAL

LNG Receiving LNG Receiving TerminalTerminalCapacity : 2Capacity : 2 –– 3 MTPA3 MTPA

RegasificationRegasification

Gas Source :Gas Source :Domestic / Domestic / OverseasOverseas

LNG VesselLNG Vessel

Capacity : 2 Capacity : 2 –– 3 MTPA 3 MTPA (250 (250 –– 400 400

mmscfd)mmscfd)

Customers :Customers :-- HouseholdHousehold Distributed through Distributed through

• Based on feasibility study in 2003, to fulfill increasing demand and to secure gas supply in Java, PGN plan to

-- CommercialCommercial-- IndustrialIndustrial

existing pipelineexisting pipeline

y y , g g pp y , pbuild LNG Receiving Terminal that will start to operate in 2014.

• Implementation program:- Deepening Feasibility Study.- Proceed of FEED and EIA.- Socio-cultural study for preparation of land acquisition.- Secure of gas supply from domestic (Bontang-Kalimantan or Tangguh-Papua) or overseas.- 11.75 million ton LNG supply MoA, from Mahakam Blok PSC, signed by Total E&P Indonesie INPEX

Corporation and PGN LNG consortium in July 2008.

2020

DURI DURI –– MEDAN TRANSMISSION PIPELINEMEDAN TRANSMISSION PIPELINE

Project ScopeProject ScopeDuri ‐Medan transmission pipeline (28” ‐ 509km)Additional:

Compressor : Simpang Dumai (9 000 HP)

LocationLocation

Compressor : Simpang Dumai (9,000 HP)Kondur spurline : BY ‐ Simpang Dumai (20” ‐155km) 

JustificationJustificationA critical step in sustaining and expanding the North‐Sumatra gas distribution marketStrategic opportunity to establish PGN’s Sumatra gas dominance by locking‐up gas supply Complete the integration of the Sumatra island‐wideComplete the integration of the Sumatra island‐wide transmission network

StatusStatusFeasibility study and FEED have been completed

h d l h b d b GO

Date of Completion: Target 2012

Total Length: 664 km (incl spurline)

Key StatisticsKey Statistics

EIA Methodology has been approved by GOIPrincipal permits from the MEMR has been receivedFinancing arrangements underwayGas supply status from South Sumatera is being negotiated with potential sources like ConocoPhillips

Total Length: 664 km (incl. spurline)

Capacity: 250 mmscfd

2121

negotiated with potential sources like ConocoPhillips and Kondur Dumai

Integrated CBM Development with Pipeline TransmissionIntegrated CBM Development with Pipeline Transmission

South Sumatra

ImplementationImplementation ProgramProgram::

‐ Geological study in Muara Enim, SouthSumatra to identify potential drilling location( ti ll t d b J i tit ti )

Lampung

Bengkulu

(partially supported by Japanese institution)was completed in 2007

‐ Conduct CBM study in South Sumatra andKalimantan to identify potential CBMlocation, inventory CBM drilling, preliminary

Legend:

: CBM Field

drilling design, establish environmentalconsideration, identify regulatory for CBMdevelopment, and recommend CBM modelcontract

CBM supply for existing SSWJ P/LCBM supply for existing SSWJ P/L

• CBM reserves in South Sumatra of 183 TCF

• The CBM fields in South Sumatra are located near the SouthSumatra West Java (SSWJ) transmission pipelines which can betili d ff t k f f CBM d l t d th futilized as off taker of gas from CBM development, and therefore

support CBM upstream activities.

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PILOT PROJECT CNG PONDOK UNGUPILOT PROJECT CNG PONDOK UNGU

Dispenser (2 unit)Dispenser (2 unit) TaxiTaxi

CompressorCompressorMRS MRS  Gas DryerGas Dryer

k/ lk/ l

Storage TankStorage Tank Priority PanelPriority Panel

FillFill‐‐Post (2 unit)Post (2 unit)Truck/Trailer to Truck/Trailer to 

IndustriesIndustries

1. CNG system is developed as a market expansion strategy to meet gas demand outside the PGN’s gas 

pipeline network.

2 Site Location at Pondok Ungu Bekasi West Java2. Site Location at Pondok Ungu – Bekasi,  West Java.

3. CNG Station is owned and will be operated by PGN to sell the CNG to private distributor company.

4. Station Capacity is 3 MMSCFD  to fulfill demand industries and NGV.

5. Start construction in 2008.

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6. Start operation in 2009.

7. Status: process of EPC Contractor Bidding.

Thank YouThank YouThank YouThank You

PT Perusahaan Gas Negara (Persero) TbkInvestor RelationsJl K H Zainul Arifin No 20 Jakarta 11140Jl. K H Zainul Arifin No. 20, Jakarta 11140IndonesiaPh: 62 21 6334838    Fax: 62 21 6331632www pgn co idwww.pgn.co.id