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Indonesia lng to support development of power and industry domestic sampe l purba v1

this paper discusses about the strategy optimization of Indonesia LNG to support development of Power and Industry domestically

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Indonesia lng to support development of power and industry domestic sampe l purba v1

  1. 1. INDONESIA LNG: TO SUPPORT THE DEVELOPMENT OF POWER AND INDUSTRY DEMAND Sampe L. Purba Senior VP – Executive Advisor SKKMIGAS Presented on: The FSRU Asia Summit 2017 20 – 21 June 2017
  2. 2. The Role of SKK Migas as Upstream Oil & Gas Management: playing the role of an integrator  Healthy and competitive return on investment  Prompt and thorough approval processes  Capital value Process, start- up and execution Investment objectives  National & Local content development and utilisation  Oil and gas delivery to meet domestic needs  Government revenues Developmental objectives  Technically feasible  Economically investable  Environmentally sustainable  Good Governance  Cost efficiency  National Capacity Building Balancing New Paradigm  Revenue approach to economic engine growth and development (Shifting Paradigm to to generate multiplier effect to the national economy: Pro Growth, Pro Job, Pro Environment, while enhancing the local content in project development) 2
  3. 3. Indonesia - Managing Gas For Nation’s Economic Growth and Global Market Contribution Finding more gas resources and how we can transfer it to add to the proven reserves • Maintaining exploration to find hydrocarbon and adding more gas reserves Developing gas supply to meet the ever growing demand • Gas Supply and Demand Management Ensuring attractiveness of upstream gas activities • Low production cost • Fair share of revenue There is shifting energy from oil dominant to gas dominant • Maintaining the oil production using EOR and IOR 3
  4. 4. The rising energy demand as consequence of rapid economic growth will make Indonesia more focus in supplying its domestic needs. However, exports will be maintained for existing contracts as well as to support new project developments. As domestic demand will grow in gradual manner, there is a need to implement more interruptible mid- terms contracts to create the flexibility in domestic and export supply. While exports are being maintained, most of additional gas supply now goes to the domestic market Source: SKK Migas 4 4,397 4,416 4,202 4,008 3,820 3,775 3,681 4,336 4,078 3,631 3,402 3,237 3,090 2849 1,480 1,466 1,513 2,341 2,527 2,913 3,323 3,379 3,267 3,550 3,703 3,785 3,880 3971 - 1,000 2,000 3,000 4,000 5,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 BBTUD Export Domestic
  5. 5. Indonesia Gas Demand vs Supply Source: Wood Mackenzie on Indonesia Energy Forum 2016 5
  6. 6. Cautiously to understand and read the Graph and Figures Demand side : - Prediction on economy growth - Alternative available domestic source of energy (Coal, Fuel, Gas, others renewable energy) - Energy supply packaging contract - Dynamics of RUPTL (Projection for 10 years, yet revisited annually) 6
  7. 7. Supply Side Issues • Economics of fields to develop • Terms of PSC – economics limits of reserves • Scheduling to monetization • Long term Commitment stability of supply • Under and less utilization of gas allocated 7
  8. 8. Nation Strategic Target 267 MMSCFD 2,867 MW 6,754 MW 450 MW 1,091 MW 1,830 MW 440 MW 423 MMSCFD 86 MMSCFD 147 MMSCFD 48 MMSCFD 38 MMSCFD 35 GW Electricity Project TOTAL GAS NEEDED: 1,100 MMSCFD TOTAL POWER: 13,432 MW Anticipate to be a LNG Importer : With Electricity as an Anchor Buyer 8Source: Ministry of Energy and Mineral Resources
  9. 9. Demand and Allocation of Natural Gas in Indonesia for Electricity LNG SupplyPipeline Supply in BBTUD Source: Minister of Energy and Mineral Resources Decree No. 1750 Year 2017 9
  10. 10. In addition to the existing gas infrastructures, new gas pipelines and FSRUs are being constructed and planned to support the domestic demand Planned LNG Receiving Terminal Existing Pipeline Planned Pipeline CNG Plant LNG Plant Existing Project Potential Gas Supply: Gas Demand: Contracted Commited Potential FSRU Nusantara Regas Capacity: 3 MTPA On stream Mid of 2012 FSRU Lampung Capacity: 2 MTPA On stream July 2014 Arun Regasification Plant Capacity: 3 MTPA On stream January 2015 Donggi Senoro LNG Plant Capacity: 2 MTPA On stream May 2015 Source: SKK Migas FSRU Benoa Capacity: 0.5 MTPA On stream March 2016 10
  11. 11. 11
  12. 12. With Current Capacity is Under Utilitize, we should cautiously Review on LNG Regasification Plant Source: Wood Mackenzie on Indonesia Energy Forum 2017 Source: SKK Migas 12
  13. 13. Issues in Fulfilling Gas Demand in Java Gas Demand for Industry and Electricty mainly in Western Java Supply LNG Bontang Tangguh Import? Pipeline Gas Sumatera Supply Western java supply Supply from other Java region 13
  14. 14. Indonesia Domestic Regassification Infrastructure to Support Demand Growth Source: Wood Mackenzie on Indonesia Energy Forum 2017 14
  15. 15. ` INFRASTRUCTURES: Pipeline, Liquefaction, Regasification and Proposed Virtual Pipeline Power Plant—Central and Eastern Indonesia (2030) Total Investment Needed: 24.3 Billion USD Source: Mr. Naryanto Wagimin Presentation – Ministry of Energy and Mineral Resources 15
  16. 16. Virtual Pipeline Cluster Concept 16
  17. 17. Supply – Demand – Infrastructure interdependence 17
  18. 18. 18
  19. 19. BLUEPRINT FOR GAS POWER PLANT DEVELOPMENT IN EASTERN PART OF INDONESIA PLTMG Saumlaki 10 MW PLTMG Merauke 20 MW PLTMG Dobo 10 MW PLTMG Langgur 20 MW MPP Papua (Jayapura) 50 MW PLTMG Jayapura Peaker 40 MW PLTMG Timika Peaker 10 MW PLTMG Fak-Fak 10 MW MPP Papua Barat (Manokwari) 20 MW PLTMG Biak 15 MW PLTMG Serui 10 MW PLTMG Bintuni 10 MW PLTMG Nabire 20 MW PLTMG Seram Peaker 20 MW PLTMG Ambon Peaker 30 MW MPP Maluku (Ambon) 70 MW PLTMG Namlea 10 MW Gas Salawati Gas Bintuni 1.524 NM 144.4 MMSCFD 862 NM 78.6 MMSCFD 1.494 NM 15 MMSCFD HUB 19 Source: Ministry of Energy and Mineral Resources
  20. 20. End Remarks • In meeting growing gas demand, Increasing LNG use for domestic consumption is unavoidable. Gas infrastructure will be the key. • Oil and gas business activities not as an extractive industry per se but to generate multiplier effect to the national economy: Pro Growth, Pro Job, Pro Environment, while enhancing the local content in project development. • Indonesia is actively constructed FSRU to support the growth of Domestic Demand • Significant gas base load demand can be created, as replacement of fuel base consumption, i.e. gas oil is still spread out. Once the base demand and infrastructure are in place, gas consumption will proliferate, hence creating Indonesia not only as importance LNG producers but also as LNG consumers • However, One should take into account the dynamics of projection of demand as it highly correlates with economic growth and all variety of primary energy supply Sources 20
  21. 21. THANK YOU
  22. 22. 2016©SKKMigas–Allrightsreserved 22 Brief CV • Sampe L. Purba, is a Professional in oil and gas related managerial business around 15 years. He has involved in almost all value chain of Oil and Gas key managerial role namely Planning department, Legal, General Support, Finance, Audit and Commercial. Currently he serves as Senior VP - Executive Advisor SKKMIGAS • Mr. Purba entered some Universities both domestics and abroad. He holds undergraduate and post graduate degrees in Economics, Commerce and Law. He is also alumni of Prestigious Regular National Leadership Course in National Resilience Institution – Republic of Indonesia • Mr. Purba registered as active member of Professional Association such as Association of International Petroleum Negotiators (AIPN), Indonesian Petroleum Society, Indonesian Accountant Association, Indonesia Bar Association, Associate of Certified Fraud Examiner, Indonesia Chamber of Commerce • As part of maintaining and updating his knowledge and sharing of experiences, Mr. Purba actively attends and gives workshop, conferences and seminar domestic and abroad. • Mr. Purba also active communicating his ideas on many strategic and current issues, through newspapers, radio, TV, journals and book. Some of his thought can be followed in http.// •;