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

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

  • 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

  • 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 togenerate multiplier effect to the national economy: Pro Growth, Pro Job, Pro Environment, while enhancing the local content in project development) 2

  • Indonesia - Managing Gas

    For Nations 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

  • 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

    4,3

    97

    4,4

    16

    4,2

    02

    4,0

    08

    3,8

    20

    3,7

    75

    3,6

    81

    4,3

    36

    4,0

    78

    3,6

    31

    3,4

    02

    3,2

    37

    3,0

    90

    28

    49

    1,4

    80

    1,4

    66

    1,5

    13

    2,3

    41

    2,5

    27

    2,9

    13

    3,3

    23

    3,3

    79

    3,2

    67

    3,5

    50

    3,7

    03

    3,7

    85

    3,8

    80

    39

    71

    -

    1,000

    2,000

    3,000

    4,000

    5,000

    2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

    BB

    TUD

    Export Domestic

  • Indonesia Gas Demand vs Supply

    Source: Wood Mackenzie on Indonesia Energy Forum 2016 5

  • 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

  • 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

  • Nation Strategic Target

    267

    MMSCFD

    2,867

    MW

    6,754

    MW

    450

    MW

    1,091

    MW

    1,830

    MW440

    MW

    423

    MMSCFD

    86

    MMSCFD

    147

    MMSCFD48

    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 Buyer8Source: Ministry of Energy and Mineral Resources

  • 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 20179

  • 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 RegasCapacity: 3 MTPAOn stream Mid of 2012

    FSRU LampungCapacity: 2 MTPAOn stream July 2014

    Arun Regasification PlantCapacity: 3 MTPAOn stream January 2015

    Donggi Senoro LNG PlantCapacity: 2 MTPAOn stream May 2015

    Source: SKK Migas

    FSRU BenoaCapacity: 0.5 MTPAOn stream March 2016

    10

  • 11

  • With Current Capacity is Under Utilitize, we should

    cautiously Review on LNG Regasification Plant

    Source: Wood Mackenzie on Indonesia Energy Forum 2017Source: SKK Migas

    12

  • 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

  • Indonesia Domestic Regassification

    Infrastructure to Support Demand Growth

    Source: Wood Mackenzie on Indonesia Energy Forum 2017 14

  • `

    INFRASTRUCTURES: Pipeline, Liquefaction, Regasification and Proposed

    Virtual Pipeline Power PlantCentral and Eastern Indonesia (2030)

    Total Investment Needed:

    24.3 Billion USDSource: Mr. Naryanto Wagimin Presentation Ministry of

    Energy and Mineral Resources15

  • Virtual Pipeline Cluster Concept

    16

  • Supply Demand Infrastructure interdependence

    17

  • 18

  • 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 MWPLTMG 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 MWPLTMG 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 NM144.4 MMSCFD

    862 NM78.6 MMSCFD

    1.494 NM15 MMSCFD

    HUB

    19Source: Ministry of Energy and Mineral Resources

  • 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 Sources20

  • THANK YOU

  • 20

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    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 keymanagerial role namely Planning department, Legal, General Support, Finance,Audit and Commercial. Currently he serves as Senior VP - Executive AdvisorSKKMIGAS

    Mr. Purba entered some Universities both domestics and abroad. He holdsundergraduate and post graduate degrees in Economics, Commerce and Law.He is also alumni of Prestigious Regular National Leadership Course in NationalResilience Institution Republic of Indonesia

    Mr. Purba registered as active member of Professional Association such asAssociation of International Petroleum Negotiators (AIPN), Indonesian PetroleumSociety, Indonesian Accountant Association, Indonesia Bar Association, Associateof 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 seminardomestic and abroad.

    Mr. Purba also active communicating his ideas on many strategic and currentissues, through newspapers, radio, TV, journals and book. Some of his thoughtcan be followed in http.//maspurba.wordpress.com

    slpurba@skkmigas.go.id; sampepurba@gmail.com

    mailto:slpurba@skkmigas.go.id