1. The document discusses trends in the global and Indonesian LNG markets, including rising Asian demand, new suppliers entering the market, and a shift towards more flexible LNG contracts. 2. It analyzes Indonesia's LNG production and contracts, finding excess production leading to a need for new domestic and international customers. 3. The presentation recommends expanding gas and LNG infrastructure in Indonesia to develop new domestic markets and optimize utilization of excess LNG, such as for power, transportation, and non-pipeline gas transmission.

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LNG Market and Outlook : Indonesia
Ministry of Energy and Mineral Resources
Republic of Indonesia
Webinar Presentations, Onsight Group – September 10, 2020
Sampe L. Purba

2. 2
Content
1 Global LNG Trend and Market
2 Indonesia LNG Potrait and Prospect
3 Exploration and Exploration Activities
4 Major On Going Projects
5 Oil and Gas domestic demand
6 Gas and LNG Utilization
7 Challenges ahead
8 Concluding remarks

3. 3
Global Supply and Demand LNG
✓ LNG global expected
to rise
✓ Asia Pacific region
imports to increase
✓ Russia,
Mozambique,
Nigeria increased
capacity → watch
out by traditional
market exporters
@IEA, Agst 2020
A tough Commercial deal
competition

4. 4
The new shape of “commoditizing LNG” will be pushed by the
imbalances of supply and demand

5. 5
Lower in demand forecast compare to that of
supply, brings more pressure to LNG market
Supply Forecast Demand Forecast

6. 6
The Era of LNG as Long Term Established Contract
shifting to Flexible Terms
Potrait of established LNG – Oil Priced
Index ➔ Keep lower :
✓ Flexible destination and/ or
volume
✓ Market-based pricing → loose
price review
✓ Supplier reliability
✓ Flexible Payment
✓ Rich-gas quality specification
✓ Investment Partnership
✓ Emissions-intensity transparency

7. 7
Indonesia LNG Balance
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Uncommitted Cargo 21,9 26,4 31,6 38,5 64,9 153,1 188,3 301,9 283,5 260,9 205,8 175,7 161,1 172,7 193,7
Kontrak LNG Ekspor 89,3 121,4 138,1 137,1 114,1 63,3 56,0 56,0 57,0 53,0 53,0 54,0 53,0 26,0 13,0
Kontrak LNG Domestik 74,5 93,7 77,7 62,0 62,0 62,0 62,0 62,0 62,0 62,0 62,0 62,0 40,9 39,1 18,0
Produksi LNG 185,6 241,5 247,3 237,6 241,0 278,5 306,3 419,9 402,5 375,9 320,8 291,7 255,0 237,8 224,7
-
20,0
40,0
60,0
80,0
100,0
120,0
140,0
160,0
180,0
200,0
220,0
240,0
260,0
280,0
300,0
320,0
340,0
360,0
380,0
400,0
420,0
KARGO(1KARGO=150.000M3)
More customers, new market and flexibility is called for to absorb
uncommitted Cargoes

8. 8
Need to create and expand new domestic market
Gas and LNG Infrastructures Optimize New Market
• Cleaner Energy ➔ Replacing diesel to gas for
Power Generation in remoted off grid islands
• LNG for transportation
✓ Vessels, Trains
▪ LNG for non connected gas transmission
pipeline
✓ new commercial enclaved residential cities
✓ ➔ Opportunity for LNG bunkering and small
transportation vessel

9. 9
It’s about time to explore domestics small yet many customer based
Opportunity to expand the market in Indonesia remains large
@McKinsey Survey in 25 importing countries, 2020
@ The Oxford Institute For Energy Studies, July 2020

10. 10

11. 11KEMENTERIAN ESDM 6
Oil and Gas National Strategic Project [USD 30,5 Billions]
USD
5 Bn
USD
16 Bn
USD
8 Bn
USD
1.5 Bn
Tangguh-3 dan JTB onstream planned 2021

12. 12
Optimism has to be maintained :
INDONESIA OIL & GAS LONG TERM PLAN
12

13. 13
Concluding Remarks
✓The global economy growth is hardly influenced shrunk down
by the pandemic Covid 19. The energy supply, demand,
investment tries to find new equilibrium
✓The LNG Market is currently under hard pressure, adjusting to
flexible commercial terms, and find new small yet many
markets
✓LNG infrastructures to expand holding central keys in order to
increase more domestics utilization
✓Indonesia remains positive and optimistic adjusting to this new
reality

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