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DEVELOPMENTS MEANS ELECTRICITY AND PROJECTION OF GAS NEEDS FOR 2016 - 2020

2nd Small LNG Shipping and Distribution Forum

Bali, 16 – 18 September 2015

Conference Day Two

Riza Affiandi

Senior Manager Primary Energy Planning & Evaluation – PT PLN (Persero)

E L E C T R I C I T Y F O R A B E T T E R L I F E

PT PLN (Persero)

PT Indonesia

Comnets Plus

IT and

Telecommunications

PT PLN

Batubara

Coal Supplier for

PLN

PT Prima Layanan

Nasional Enjiniring

Engineering and

Construction

Services

PT PLN Tarakan

Regional Fully

Integrated Electric

Utility

PT PLN Batam

Regional Fully

Integrated Electric

Utility

PT Indonesia Power

Power Generation

and OM

100% Owned by Government of

Indonesia

PT PLN (Persero)

PT Haleyora

Power

Distribution

Maintenance

Ministry of State Owned

Enterprises (MSOE)

Ministry of Energy and

Mineral Resources (MEMR)

Ministry of Finance (MoF)

Ministry of the Environment

National Development

Planning Authority

(BAPPENAS)Oversight

Majapahit BV

Financial

Institution

PT Pembangkitan

Jawa Bali

Power Generation and

OM

PT Pelayaran

Bahtera Adhiguna

Shipping Activities

Note: Excludes Joint Ventures.

PT PLN

Geothermal

Geothermal Energy

Generation

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E L E C T R I C I T Y F O R A B E T T E R L I F E

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Electricity Crisis Condition Map during Dry Season 2014

E L E C T R I C I T Y F O R A B E T T E R L I F E

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Installed Capacity

• Serving more than 57.5 million customers (at June 2015)

• All Gas Fired Power Plant (87% owned by PLN), require minimum gas supply

1800 BBTU per day

COAL GAS OIL HYDRO GEOTHERMAL OTHERS TOTAL

IPP 5.29 1.15 0.09 0.63 0.77 0.03 7.95

RENTAL 0.16 0.85 3.18 - - 0.22 4.41

PLN 19.62 13.00 2.36 3.53 0.57 0.17 39.26

TOTAL 25.07 15.00 5.64 4.16 1.34 0.42 51.62

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

26.0

28.0

GW

INSTALLED CAPACITY PER DEC 2014

E L E C T R I C I T Y F O R A B E T T E R L I F E

Fuel Mix and Production Costs 2014

20,8%

29,4%

47,8%

1,8% 0,2%

FUEL COSTS

52,6%

24,6%

11,7%

4,5%6,6%

FUEL MIX

COAL GAS FUEL OIL GEOTHERMAL HYDRO

57,9%17,4%

2,8%6,3%

6,0%2,1%

7,5%

66,8%

1,1%

3,7%

9,0%

7,0%

2,5%9,9%

OPERATIONAL COSTS

FUEL IPP RENT MAINTENANCE HR ADMIN DEPRECIATION

2013 2014

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E L E C T R I C I T Y F O R A B E T T E R L I F E

2009 – 2015 Fuel Mix (PLN & IPP)

43,1% 40,9%44,1%

50,6% 51,4% 52,6%57,0%

22,0%22,4%

20,8%

23,3% 24,0%24,6%

23,7%4,9%

5,6%5,2%

4,8% 4,4%4,5%

4,4%

7,3% 10,5% 6,8%

6,4%7,8%

6,6%

6,4%22,7% 20,6%23,1%

14,9% 12,3% 11,4%8,0%

0,3% 0,5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014 RKAP 2015

BIOFUEL FUEL OIL HYDRO GEOTHERMAL GAS COAL

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E L E C T R I C I T Y F O R A B E T T E R L I F E

Role of gas power in an electricity supply system

0

20

40

60

80

100

120

140

160

180

200

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Baseloader Load Follower Peaker

mm

scfd3. Gas fired PP will be operated

to meet intermediate/

follower or peaking demand

1. Hydro, Geothermal and Coal

PP to meet base load demand

2. Fuel oil will only be used to

run :

a) Peaking unit

b) must run unit

c) remote areaBase load (Coal/Geothermal/Hydro)

Fluctuative daily gas demand

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E L E C T R I C I T Y F O R A B E T T E R L I F E

70,4 GW Additional Power Plant (2015-2024)

Coal Hydro GeoT CCPP OCPP Others

MW

CFP : 42,0 GW Hydro : 9,3 GW

OCPP : 5,0 GW Geothermal : 4,8 GW

CCPP : 9,2 GW Others : 0,1 GW

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E L E C T R I C I T Y F O R A B E T T E R L I F E

Role of primary energy for National Electricity

Coal62,9%

Gas16,4%

LNG9,4%

Fuel Oil1,8%

Import0,4%

Hydro5,0%

Geothermal4,2%

2019

Coal53,5%Gas

20,6%

LNG4,1%

Fuel Oil11,4%

Import0,3%

Hydro5,7%

Geothermal4,2%

2015

CoalHydroGeothermal

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E L E C T R I C I T Y F O R A B E T T E R L I F E

Gas Balance for Indonesia Electricity Sector

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

TOTAL DEMAND 1.717 1.969 2.254 2.508 2.412 2.316 2.326 2.342 2.342 2.345

TOTAL SUPPLY 1.532 1.526 1.629 1.597 1.288 1.085 1.021 1.014 895 877

TOTAL CAPACITY (GW) 15,40 17,96 23,17 27,71 28,46 28,6 28,9 29,0 29,1 29,2

-

5

10

15

20

25

30

35

-

500

1.000

1.500

2.000

2.500

3.000

B B

T U

D

G W

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E L E C T R I C I T Y F O R A B E T T E R L I F E

Problems of Gas Supply for Power Plants

• Shortage of gas sources.

Supply < Contracted < Demand

• Commitment of contract quantity in GSA is not achieved

Best Effort approach

Early termination due to gas reservoir depletion

• Lack of infrastructure

Gas sources located in remote area, whereas load centre is near city.

Limited : transmission/distribution pipeline, compression station

• Fluctuative daily load profile require high swing rate

Peak / off peak demand

Need linepack or gas storage

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E L E C T R I C I T Y F O R A B E T T E R L I F E

Additional 13,4 GW New Gas Power Plant

PLN : 6,634 MW + 595 MW IPP : 6,233 MW

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E L E C T R I C I T Y F O R A B E T T E R L I F E

Indonesia Domestic LNG Regas Facility

FSRU West Java operated by PT

Nusantara Regas. Deliver gas supply

to Muara Karang and Priok CCPPs

(4000 MW) around 27 cargos per year.

FSRU Lampung operated by PT

PGN, Tbk. Deliver gas supply to:

Muara Tawar CCPP (2000 MW) during

peak time (14 hours) up to 12 cargos

per year.

Arun Regas Facility operated by PT

Perta Arun Gas. Will deliver gas

supply to Arun Peaker GTPP and

Belawan CCPP (total 1500 MW), up to

12 cargos per year, and 5 cargos per

year to Fertilizer Industry in Aceh

Province.

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E L E C T R I C I T Y F O R A B E T T E R L I F E

2015 – 2025 LNG Demand

• 48 cargos for 2015 year has been secured

• 34 cargos has been secured for long term supply

• Need government support through domestic allocation from National LNG

productions

• MSA for any spot supply required

• LNG supply tender

DEMAND 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

1 Sumatera 10 13 13 10 10 10 10 10 10 10 10

2 Eastern Indonesia 1 2 9 11 11 11 12 12 12 11 11

3 Bali 1 5 5 4 4 4 4 4 4 4 4

4 Muara Karang - Tanjung Priok 27 27 27 29 30 36 36 36 36 36 36

5 Muara Tawar 11 15 15 15 17 21 21 21 21 21 21

Total Indonesia 50 62 69 69 72 82 82 82 83 82 82

LNG CARGOS DEMAND

1 cargo = 125.000 m3

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E L E C T R I C I T Y F O R A B E T T E R L I F E

Optimizing existing gas supply using CNG Storage

Sungai Gelam 5 MMSCFD CNG storage system

In operation since December 2013, for 80 MW peaking unit

Jakabaring 3 MMSCFD CNG storage system

In operation since February 2013, for 60 MW peaking unit

Other CNG Storage Project in progress:

PROJECT INSTALLED CAPACITY PLANNED COD STORAGE CAPACITY

PLTG Peaker Lampung 100 2017 10

PLTG Jambi Peaker 100 2017 5

PLTGU Gresik 800 2018 20

PLTMG Tanjung Selor 8 2016 1.5

PLTG Bangkanai 295 2016 20

Grati 15 MMSCFD CNG storage system

In operation since July 2013, for full operation of Garti

CCPP (660 MW) during peaking time

Muara Tawar 25 MMSCFD CNG storage system

In operation since January 2014, for full operation of Muara

Tawar CCPP (2000 MW) during peaking time

Duri 5 MMSCFD CNG storage system

In operation since February 2014, for 100 MW peaking unit

Tambak Lorok 20 MMSCFD CNG storage system

Ready for operation since April 2014

1

2

3

4

5

6

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E L E C T R I C I T Y F O R A B E T T E R L I F E

Implementation of CNG Marine

• 20 MMSCFD transported to Lombok CCPP (120 MW) to be operated as peaking Unit

Marine CNG Gresik - Lombok

• 2+2 MMSCFD transported to Bintan OCPP (6+6 MW) operated as baseloder since February 2014 and April 2015

Marine CNG

Batam - Bintan

• 0.5 MMSCFD transported to Bawean OCPP (2 MW ) operated as baseloader since October 2014

Marine CNG

Gresik - Bawean

1. Sent to location with no natural gas resources

2. Marine transportation for distance less than 500 NM

3. More economic and faster than Mini LNG (ie. less complexity)

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E L E C T R I C I T Y F O R A B E T T E R L I F E

17 Locations,

1317 MW,

139 mmscfd

30 Locations,

1781 MW,

149 mmscfd

21 locations,

430 MW,

50 mmscfd

LNG Supply Logistics

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E L E C T R I C I T Y F O R A B E T T E R L I F E

Alternatives Zoning for Gas Supply

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E L E C T R I C I T Y F O R A B E T T E R L I F E

PLN’s Mini LNG Projects – Business Model

PLN buy gas at Plant Gate :

Gas Developer (and its

consortium) develop / provide:

- LNG Plant

- LNG Transportation

- LNG Regasification Facility

- LNG Terminal

- Necessary infrastuctures :

pipelines, ORF, meters

PLN buy gas at well :

PLN or its contractors develop/

provide:

- LNG Plant

- LNG Transportation

- LNG Regasification Facility

- LNG Terminal

- Necessary infrastructures :

pipelines, ORF, meters

Gas SourceLNG

PlantTransportation

LNG

StorageRegas

Facility

Power

Plant

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E L E C T R I C I T Y F O R A B E T T E R L I F E

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Thank you

Contact : riza.affiandi@pln.co.id