Gas Development Master PlanSteering Committee Meeting – 28 March 2013Draft Policy Note 5 : Framework for Gas InfrastructureDevelopment
2National Gas Transmission and DistributionMaster Plan
3National Gas Transmission and DistributionMaster Plan
4National Gas Transmission and DistributionMaster Plan
5The issues….• The Government officially details its plans for the constructionof new gas pipelines transmission and distributioninfrastructure in the Migas National Gas Transmission andDistribution Master Plan.• The most recent version of this plan covers the period 2012 to2025 and was issued by the Minister of Energy and MineralResources and dated 6 September 2012.• There is no information available which sets out themethodology which has been used to prepare this plan, nor isthere any clarity on the supply/ demand scenarios on which itis based.• It appears to be a list of existing pipelines, the date built, theirrelevant dimensions and a stated transportation capacity(although the basis for capacity calculation is unknown)together with a list of planned pipeline developments forwhich data is less precise.
6More issues….• The plan does not appear to have any strategic basis,which is expected of any kind of Master Plan, coveringthe essential issues such as:– Supply point locations and volumes of gas available for domesticconsumption;– Projected demand, by location, for the development of industrial,commercial, residential or other (such as CNG for vehicles)markets;– Projections of gas flow or capacity requirements required to linkthe supply and demand locations.• There appears, therefore, to be ineffective transparencyin the regulatory process for the development of gasinfrastructure and no clear basis for a national strategy toensure that gas is delivered to appropriate locations inappropriate quantities to enable its efficient utilisation tothe national good.
7Recommendations• If the gas industry in Indonesia is to make maximum use of theavailable gas resources and infrastructure in the country it isessential that there is a Strategic Master Plan which sets outthe long term, coordinated policy for development of:– Gas supplies allocated between exports and domestic utilisation;– Markets which make the most efficient use of the gas to the benefitof the national economy overall;– Infrastructure which can deliver the gas supplies to those marketssafely, consistently and securely.• In addition, it is essential that a clear structure for the industryis decided and implemented with definition of roles andresponsibilities of all possible players within, including theregulators. This structure should define how the markets forgas will operate and interact with one another, what rules willapply, what Codes of Practice for all aspects of operations, etcin order that the policy can be fully and efficientlyimplemented.