Natural Gas Supply & Utilization

For Domestic Industries

Bali, 24 April 2015

Kusdi Widodo

General Manager LNG

Company Profile

Background

LNG Sources

Gas Business - Domestic Market

LNG Business – Domestic Market

Energy Cost Comparison

LNG Milestone of Infrastructure

Challenges

Pilot Project in LNG Mining

Outline

COMPANY PROFILE

INTEGRATED

UPSTREAM -

DOWNSTREAM

24,784 EMPLOYEES

REVENUE

$70.9 BILLION

PROFIT

$2.8 BILLION

RANKED in FORTUNE 500 AND FIRST INDONESIA COMPANY IN FORTUNE 500

=

123th

2013 Key figures

Established - PT Perusahaan Minyak Nasional

(PERMINA)

Merger PERMINA & PERTAMIN to be PERTAMINA

Formed Gas Utilization Division

Established PT Pertamina Gas

Established PT Pertagas Niaga (PTGN)

1957

1968

1989

2007

2010

COMPANY HISTORY

Per Men ESDM 19/2009 Unbundling scheme

(Transporter & shipper) 2009

Vision To be a world-class national

gas trading company

Mission Leading natural gas and related

business professionally,

capable in optimizing added

value for stakeholder.

Committed to environment and

prioritizing safety and health

excellence (HSE).

VISION MISSION

Back

OUR BUSINESS PROCESS

Gas Source

• KKKS/PSC

• LNG

• FSRU

• Others

• Distribution Pipeline

• Processing (Mini LNG/CNG/BBG)

• Selling To

• Selling Through

• Gas Processed Trading

Value Creation

Gas Trading

• Gas Source

• Value Creation

• Gas Trading

OUR LINE OF BUSINESS

Piped Gas Distribution

LNG Business

Mini LNG Plant

CNG Product

LNG for

Domestic

Market

City Gas

Back

BACKGROUND

BACKGROUND

UU No. 30/2007 : Energy diversification

program from oil fuel (BBM) to LNG for

transportation sector to decrease & save

oil fuel (BBM) in the country.

Oil & Gas Law :

Perpres No. 5/2006 : The energy mix with

target up to 30% by using gas and oil fuel

from 51% up to 20% in 2025.

Pertagas Niaga was formed to comply to

PerMEN ESDM 19/2009 (unbundling

Scheme)

ENERGY MIX INDONESIA

20%

30% 33%

17%

Gas 857 Mboe

47%

24%

24%

5%

Energy Mix Indonesia 2011

Coal

283 Mboe

NRE

59 Mboe

Oil

553 Mboe

Gas

283 Mboe

Energy Mix Indonesia 2025

Coal

943 Mboe

NRE

486 Mboe

Oil

571 Mboe

100% = 1,176 Mboe 100% = 2,857 Mboe

LNG SOURCES

LNG Terminal in Development

Existing LNG Liquefaction Plants

LNG Liquefaction plants in development

Arun LNG

Terminal

Central

Java FSRU

Bontang LNG Plant

Donggi-Senoro

LNG Palnt

Abadi FLNG

Tangguh

LNG Plant

LNG SOURCES - DOMESTIC

LNG SOURCES – CHENIERE USA

GAS BUSINESS IN

INDONESIA

Piped Natural Gas (PNG)

PIPED GAS (EAST JAVA)

KE-5

SURABAYA

MADURA ISLAND

MADURA STRAIT

KAMBING ISLAND

HUSKY (EX EMOI)

MADURA BD

EAST JAVA

PORONG

ORF PORONG

TERANG (DEVELOPMENT)

SIRASUN (DEVELOPMENT)

KANGEAN BLOCK (bp, ex ARBNI)

PAGERUNGAN PETROKIM

IA GRESIK

TUBAN

KE S

EM

ARAN

G

PGN LINE

Kawasan Industri TANDES

GN. SARI Kawasan Industri KARANG PILANG WARU

Kawasan Industri

RUNGKUT

LAPINDO BRANTAS

HESS UJUNG PANGKAH (DEVELOPMENT)

(TAHAP PRODUKSI)

PLTGU

GRESIK

PG

N

PASU

RU

AN

PLTG

U

PASU

RU

AN

PLTGU GRATI

SANTOS

SAMPANG PSC (DEVELOPMENT)

COPI KETAPANG PSC (EXPLORASI)

JOB SANTA FE TUBAN

4

4

4

4

5

INDOPACIFIC ex GFB BAWEAN PSC

6 7

PT. WIRABUANA KARAPAN PSC (EXPLORASI)

PTM SUCI

Kawasan Industri

PGN GRESIK

EXXON MOBIL

(CEPU)

PTM

KEDUNG TUBAN

BALI

CEPU

CONSUMER NAME

PGN GRESIK

PETROKIMIA GRESIK

PLTGU GRESIK

PGN SURABAYA

PGN PASURUAN

PLTGU PASURUAN

PLTGU GRATI LPG PLAN LEGEND EXISTING LINE FUTURE LINE PGN P/L FUTURE

1 2 3

4

5

6 7

2 1

MOJOSARI 12"

KRIAN

8

8

SANTOS

OYONG

(DEVELOPMENT)

SANTOS MALEO

(ONSTREAM 29/9/06)

7 KM

60 KM

Pipa Pertamina

meledak

(Km 38)

3

ORF

GRESIK

KODECO

Kawasan Industri PORONG

WUNUT

10” 400M

12”

105M

CARAT

Offtake Porong

PGN

POLENG

(KODECO)

ORF SEMARE

Next

LEGEND :

CONSUMER

COMPRESSOR STATION

GAS SUPPLY

CITY

EXISTING LINE

FUTURE LINE

AVB

AVA

AVSA

ZU JUNCTION

P FLOW (Existing) Platform Mods

BIMA

ZUK 4 Wells NEW Tripod

MM-COMP

LL-COMP

KL

BZZ

ARJUNA LNG PLANT

19

4

5

7

6

9

9A

8

10

12 11

17 16

18

13

14 15 MUARA KARANG TANJUNG

PRIOK

24” – 74 km

BITUNG

SERPONG

MARGONDA

16” “Y” CIMANGGIS

8” – 10 km

CIBINONG

BOGOR

NAGRAK

JAKARTA

TEGAL GEDE

24” – 45 km

18” – 45 km

CICAUH

10

” &

18

”– 3

.6 k

m

CITARIK

CILAMAYA UTARA

PASIRJADI

6”

– 2

5 k

m

SUBANG

DAWUAN CIKAMPEK

CILAMAYA

KANDANG HAUR TIMUR

6”

– 2

0 k

m

14” – 34 km

BALONGAN

8” – 29 km TUGU BARAT

MUNDU

LPG SDK

RANDEGAN CIREBON

SUKABUMI

CIANJUR CIMAHI

BANDUNG

L PARIGI

WEST JAVA

CNOOC AREA

ONWJ BP AREA

PGN JABAR

21

20

GRISSIK GAS PLANT (400 MMSCFD)

PALEMBANG

PAGARDEWA (SPG)

LABUHAN MARINGGAI

TANJUNGKARANG

2 3

K. STEEL

4”

4”

MERAK

CILEGON

BANGKA ISLAND

1

36”

Lampung

SSWJ II 32” 440

MMSCFD

MUARA BEKASI

RAWA MAJU

BANTEN

TERBANGGI BESAR

APN

PERTAMINA GAS PLANT

(250 MMSCFD)

SSWJ I 32”

530 MMSCFD

B

U

E F

MTPP

PIPED GAS (WEST JAVA)

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Compressed Natural Gas (CNG)

CNG Mother Station

Citra CNG

IEV

Cipta CNG

BMI

Reethau

Suropati

MS

MS Bitung

8 Industrial Mother

Station

More than 10 Offtaker

Around 50 - 60 Industries

Total volume 25 MMSCFD

CNG

Customer

eddyss, apr 14

CNG (BITUNG - WEST JAVA)

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City Gas

SENGKANG PRABUMULIH

JAMBI

LOKASI

Provinsi : Sumatera Selatan

Kota : Prabumulih

Kecamatan : Prabumulih Barat,

Prabumulih Utara

Kelurahan : Prabumulih, Muntang

Tapus, Patih Galung, Pasar 1, Pasar 2,

Wonosari

INFRASTRUKTUR

Jumlah pelanggan : 4.650 SR

Jumlah MR/S : -

Jumlah R/S : 13 unit

GAS SOURCE

Source : PT Pertamina EP

Alokasi gas : 0.5 MMSCFD

LOKASI

Provinsi: Sulawesi Selatan

Kabupaten : Wajo

Kecamatan: Pamanna, Tempe

Kelurahan : Lempa, Sitampae,

Maddukeleng, Attakae,

Siengkang, Paddupa,

Lapongkoda, Bulu Pabbulu

INFRASTRUKTUR

Jumlah pelanggan : 4.172 SR

Jumlah MR/S : 1 unit

Jumlah R/S : 15 unit

GAS SOURCE

Source : Energy Equity Epic Sengkang Pty. Ltd.

Alokasi gas : 0,5 MMSCFD

LOKASI

Provinsi : Jambi

Kota : Jambi

Kecamatan : Jambi Selatan, Jelutung

Kelurahan : Thehok, Handil Jaya

INFRASTRUKTUR

Jumlah pelanggan : 4.000 SR

Jumlah MR/S : 1 unit

Jumlah R/S : 14 unit

GAS SOURCE

Source : JOB Pertamina Talisman

Jambi Merang

CITY GAS

LNG BUSINESS –

DOMESTIC MARKET

LNG Domestic Business Model

Mining, Transportation and Other Sectors

Bontang

FOB in Bontang

Provide shipping & Trucking for LNG

Provide LNG at Plant Gate Customer

(Provide Trucking on Site)

Provide LNG to end customers

(Provide all logistic supply)

Shipping

Receiving Terminal Trucking Customers

Provide LNG Receiving

Terminal on Site

Facilities by Pertamina Gas & Partners

Trucking

Alternative custody transfer

Operational Excellence, 20 – 30 % cost saving compared with HSD

High Caloric Content Energy per unit vol. – easy and efficient to deliver and storage

Not Require Asset Exchange – just need converter for vehicle, small investment

Minimum Losses – easy to control compare with HSD, no thief

Clean Energy - Lower Emissions

HSE – Controllable

Benefit Of Using LNG

Current Diesel Fueling Model Future LNG Fueling Model

LNG tanks with small diesel tank on truck

Diesel tank on truck

On site refueling

On site refueling

On site storage Transport

On site storage

Transport

Crude Oil

Natural Gas

Refinery

LNG Liquification

LNG for Mining & Transport - LNG VS Diesel Supply Chain

Sources : Caterpillar Back

ENERGY COST COMPARISON

Energy Comparison of Gas vs Fuel Oil

22 LNG

*Depend on logistic and assumption crude oil price @ 100 US$/Barel

*

PNG 09

1986 2000 2006 2010 2013 2015

Price CNG (Rp/LSP)

190 450 2562 3100 3100 3100

Price BBM Subsidized (Rp/LSP)

385 1150 4500 4500 6500 7400

% Price CNG Vs. Price BBM

49% 39% 57% 69% 48% 42%

Prices Comparison of CNG (BBG) vs Fuel Oil (BBM) for Transport

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LNG MILESTONES OF

INFRASTRUCTURE

ROADMAP INFRASTRUCTURE PERTAMINA OF LNG FOR MINING, TRANSPORTATION & OTHERS PROJECT IN INDONESIA

Des ‘14 – Phase 1, LNG Filling LNG Station at Plant 26 Bontang with 1 ISO Tank per day (0.42 mmscfd)

2014 2015

Des ‘13 – Temporary Filling LNG Station at Zona 1 with 1 ISO Tank per 9 days (0.05 mmscfd)

Mid ‘16 – Phase 2, LNG Filling LNG Station at Cargo Dock Bontang with design capacity 72 ISO Tank per day (30 mmscfd)

2016 2017 2018

Des ‘18 – Phase 3, Bontang Loading Dock#3 can be berthed by Coastal ship and Small LNG Carrier ( <10,000 m3)

2019

Des ’17 - LNG Some Daughter Stations (SPBG LNG) for Transportation in Java and Kalimantan

Build Satellite Terminal (Receiving Facility) at End User by Pertamina or Joint Venture with end user

Building supporting facility for ISO Tank delivery by LCT/Sea Transportation Starting distribute LNG ISO Tank by LCT from Badak to End User

1. Starting deliver LNG by Coastal Ship from Badak to End User’s Daughter Station

2. Starting deliver LNG by Small LNG Carrier (>10.000 m3) from Badak to Satelite Terminal

Have appointed independent consultant (RE) to establish Pre Feasibility Study of supply chain management LNG distribution

Sept ‘15 Commissioning LNG Filling Station di PAG Arun with design capacity 20 mmscfd

Existing Infrastructure

SUPPLY & MANAGING SMALL SCALE LNG DISTRIBUTION

NEW FILLING STATION

PLANT-24

PT BADAK NGL Bontang Site

PLANT-26

LNG Filling Station: Plant-24 : capacity 1 ISO tank/ 9 days Plant-26 : capacity 1 ISO tank/ day New Plant : More than 70 ISO tank/day Future : Loading Dock #3 modification

NEW PLANT CARGO DOCK

LCT Gantry Crane

SEMI TRAILER

CARGO DOCK

Bontang

FILLING STATION ISO TANK

1st Filling Station for LNG ISO Tank in Indonesia

LNG SOURCE - Location : PT Badak NGL, Bontang

- Loading Capacity : Phase 1 = 1 – 6 ISO Tanks Per Day

LNG FILLING STATION PLANT 26 at PT BADAK LGL Bontang

LNG VALUE CHAIN

LNG Distribution

List of Equipment: - Isotank (20 or 40 ft) - Head Truck + Trailer - LNG Refueling Unit

1. Truck will carry Isotank 2. Isotank will stay on site and truck return to

filling point with empty tank. 3. Isotank can be used as refueling unit as well

LNG Refueling Unit

LNG Value Chain Mining Sector

Bontang

1

3

4

FSU

Oil Fuel Tank Trucking

Dispensing Unit

Fuel Tank & Converter Kit

5

6

2

Legal & Administration

1. LNG Commercial License/Permit

2. Transportation Permit

3. Custody Transfer

4. SKPP/SKPI

Human Resources

Team competencies in sales, technical, & marketing.

Financial

1. Financial support, Capital for Logistic & facility investment.

2. Strategic Partnership

Technical

1. Loading & Unloading Facility

2. LNG Handling, Converter, etc.

Challenges

Need strong commitment from management

CHALLENGES IN LNG BUSINESS

BERAU COAL

INDOMINCO

BALCONY MALL 1. Deliver by Truck 330 HP and ISO tank 20 ft. 2. LNG Pilot Project:

a. Berau Coal = 500 Km or 3 Days (Aug’14, Mining Dump Truck Komatsu HD – 645 )

b. Indominco = 25 Km or 1 Hours (Dec ‘13, Mining Dump Truck Volvo) c. Balcony Mall (Balikpapan) = 240 Km or 12 Hours (Dec’14,Genset &

Chiller)

WHAT WE’VE DONE

PILOT PROJECT Loading LNG to Isotank at PT Badak NGL

PILOT PROJECT Launching LNG for Fuel/ Truck – Patra Niaga

PILOT PROJECT Mining Berau Coal

PILOT PROJECT Loading LNG to Komatsu HD 645

PILOT PROJECT Mining Indominco

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PILOT PROJECT Loading LNG to Volvo F-16

Tank Location – Komatsu HD 645