Gas Distribution Through Pipeline

in Indonesia
By Michael Baskoro - PGN
Maximizing the Value of Indonesian Gas in Partnership with Norway
Hotel Borobudur, Jakarta, October 5
th
, 2011
1
Disclaimer:
The information contained in our presentation is intended solely for your personal reference. In
addition, such information contains projections and forward-looking statements that reflect the
Companys current views with respect to future events and financial performance. These views
are based on assumptions subject to various risk. No assurance can be given that further events
will occur, that projections will be achieved, or that the Companys assumptions are correct.
Actual results may differ materially fromthose projected.
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SupplyvsDemandand
InfrastructuresCondition
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Indonesia:AMajorProducerofNaturalGas
ThelargestprovengasreservesinAsiaPacific
AheadofAustralia,ChinaandMalaysia(BPWorldEnergyReport2010)
ThelargestprovengasreservesinAsiaPacific
AheadofAustralia,ChinaandMalaysia(BPWorldEnergyReport2010)
Source: Director General of Oil and Gas
6.39
26.68
7.96
1.32
3.71
53.06
7.76
21.49
24.14
6.31
6.18
6.30
Experiencedomesticnaturalgasshortages
Duetofastgrowingdemandandthelimitationofnaturalgasinfrastructure
Experiencedomesticnaturalgasshortages
Duetofastgrowingdemandandthelimitationofnaturalgasinfrastructure
Natural Gas: Proved reserves (BP Worl d Energy Report 2010) 2009
share
Trillion cubic metres 2005 2006 2007 2008 2009 of total
Indonesia 2.48 2.63 3.00 3.18 3.18 1.7%
Australia 2.35 2.34 2.29 3.08 3.08 1.6%
China 1.53 1.68 2.26 2.46 2.46 1.3%
Malaysia 2.48 2.48 2.38 2.38 2.38 1.3%
Tot al Asia Pacif ic 13.48 13.75 14.65 16.00 16.24 8.7%
Tot al Wor ld 172.28 173.18 176.68 185.28 187.49 100.0%
4
2093
1247
965
246
131
100
79
0
500
1000
1500
2000
2500
WhattheUsersNeed:MoreGasSupplies!
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NoSubsidyofFuelfortheIndustries
Subsidiesforindustriesrevokedin2005
Pricing and Efficiencies
Significantpriceandefficiencies
benefitsbyconvertingto
naturalgas,aswellas
environmentalconcerns
ConversionofPowerPlants
Pentupdemandfromthe
conversionofexistingdualfired
powerplantspending
availabilityofgas
Demandfromtheindustries
Requirenaturalgastocompeteinthe
eraofFreeTrade
IndustryDemand2011
Source:MinistryofIndustryRepublicofIndonesia&PLN
CurrentLowConsumptiontoDriveDemand
Lowlevelofcurrentconsumptionofnaturalgasandelectricity
Ensurethecontinuinggrowthofdemandfornaturalgas
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Energy IDR/Kwh
Oil 1,420
NaturalGas 339
Coal 366
Geothermal 542
Hydro 12
CostofElectricityProduction
Source:PLN&BisnisIndonesia(Januari2011)
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INDONESIAN GAS BALANCE 2010-2025
NaturalGasinIndonesia
DemandvsSupplyIssues
Demand for natural gas is concentrated in
some industrial areas (West, Central &
East Java, Banten, North Sumatera).
Demand for natural gas is growing rapidly.
To this day still very dependent on
pipeline gas.
Supply for natural gas is located far from
markets and sometimes in remote
areas/deep water.
New natural gas explorations and
productions are growing slowly.
Several gas fields have been tied to long
term export contracts.
VS
New infrastructures must
be developed:
Transmission and
distribution pipeline
LNG facilities (FSRU or
land base)
CNG, etc
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RecentIndonesiasInfrastructures
9
10
Producers
Shippers
NaturalGas
Distribution
Network
Retailer
Transmission
Line
Wholesaler
PGN
Mediating
Other Bussines
GASDELIVERY
END CUSTOMERS
Industries
IPP
PLN
Commercial&Household
PGNCurrentPositioninValueChain
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OurSourcesofGas
Pertamina Cirebon
DOHCirebon
15BCF
Pertamina JBB
DOHCirebon
338BCF
Pertamina SumateraSelatan
DOHSumsel,Merbau Field,Pagardewa,
Prabumenang,Tasim,Musi Barat
1006BCF
Grissik
PSCGrissik CorridorBlock
2581BCF
MedcoE&PIndonesia
South&CentralSumatraBlock
14BCF
Lapindo Brantas
Wunut Field
136BCF
Kodeco
WestMaduraPSC
52BCF
Pertamina Medan
DOHRantau
44BCF
*)@1000BTU/SCF
Indonesia
Pertamina TACEllipse
Jatirarangon Field
41BCF
Maleo Field
243BCF
HuskyOil
BDField
146BCF
KALIMANTAN
MedcoE&PLematang
Lematang Block
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PGN
Industrial
Customers
(SteelMillls,
Petrochemical,
Ceramics,Textile,
Glass)
PowerSectors
(PLN,IPP)
Commercial
Customers
(Hotels,Shopping
Malls,Commercial
buildings)
Residential
Customers
GASSUPPLY
Contractedfor
volumeandprices
CUSTOMERS
Contractedfor
volume
Businessto
businessPrices
Key Suppliers Under Upstream Authority / BPMigas
PGNsRole ConnectingtheProducers
totheConsumers
Represented98%ofvolume
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OurTransmissionNetwork&Facilities
Duri
KALI MANTAN
Terbanggi Besar St. Pagardewa Station
Panaran Station, Batam
Labuhan Maringgai St. Muara Bekasi Station
Grissik Receiving Station
Legend:
South Sumatera West J ava Transmission
Pipeline (SSWJ I & I I ) (1.002 km)
Grissik Duri transmission pipeline(536 km)
PLN Medan
Strategic Business Unit (SBU) I
Strategic Business Unit (SBU) I I
Strategic Business Unit (SBU) I I I
Grissik Singapore transmission pipeline(469 km)
Pagardewa Compressor St.
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Wampu - Belawan transmission pipeline(68,6 km)
Total transmission pipeline
length: 2.076 km
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Cater for 44,4%
of total retail
infrastructure *
* Source : MEMR Decree No. 0225/ 2010
Dist P/L: 587 km
(Future LNG RT)
70%PEP/L
NORTHSUMATERA
Dist P/L: 56 km
19%PEP/L
BATAM
Dist P/L: 135 km
99,8%PEP/L
PALEMBANG
Dist P/L: 709 km
30%PEP/L
EASTJAVA
Dist P/L: 2,400 km
(Future LNG RT)
50%PEP/L
WESTJAVA
Dist P/L: 11 km
PEKANBARU
DistributionNetwork fortheRetail andHousehold Customers
Dist. P/L : Distribution Pipeline
PE P/L : Poly Ethylene Pipeline
Total distribution pipeline
length: more than 3,750 km
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ConclusionRemarks
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The demand for natural gas in Indonesia is still increasing
rapidly. It is a promising market to be exploited.
Infrastructures development (transmission, distribution
pipelines and facilities) are in progress and will continue to
grow in order to connect producers and end customers.
PGN is committed to take the leading role in connecting gas
supply to the market.
Contact:
PTPerusahaanGasNegara(Persero)Tbk
Jl.KHZainul Arifin No.20,Jakarta11140,
Indonesia
Ph:62216334838Fax:62216331632
http://www.pgn.co.id
Thank You
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