LNG Integrated System to uphold the Energy Sovereignty in Indonesian

Archipelago Bali, 20 May 2014

SPEAKER

All Of PGN’s Subsidiaries

Upstream

Downstream

Storage, Transporter, Trading LNG

Data Communication

Storage, Transporter, Trading LNG

Transmission

EPC, ENG, O&M

FSRU Lampung:

The First FSRU & Gas Pipeline Inter-Island Integrated System in Asia

F D

E

B

A

C

A FLOATING STORAGE AND REGASIFICATION UNIT (FSRU)

• FSRU Dimension - LOA 294 m; - Breadth moulded 46 m; • Deadweight FSRU in seawater : 81.900 tons • Storage Capacity : 170.000 m3

• Regasification Capacity : 240 MMscfd

FSRU SCOPE

OFFTAKE STATION (OTS) F D ONSHORE RECEIVING FACILITIES ORF)

E ONSHORE PIPELINE 1 KM C OFFSHORE PIPELINE 21 KM

PIPELINE SYSTEM SCOPE

B TOWER YOKE MOORING SYSTEM

MOORING SYSTEM SCOPE

OTS ORF

SSWJ

Dist. Sumatera - Jawa

FSRU

Distribution Network

LABUHAN MARINGGAI

STATION

HDD 1 KP 41 + 100

HDD 2 KP 73 + 800

TANJUNG

KARANG

OFFTAKE

SEKAMPUNG UDIK

OFFTAKE

SUTAMI

Infrastruktur Distribution

Pembangkit Sri Bawono Progress: pekerjaan piling

Pembangkit Sutami Progress: pekerjaan piling

Pembangkit Tarahan

Lampung Distribution’s Project

Scope Technical Specification

FSRU

Storage capacity 170.000 cbm

Send-out rate 240 MMscfd

LNG transfer-rate 5000 cbm/hr

Send-out pressure 1140 psig

Send-out temperature 65 0F

Mooring

Type Tower Yoke

LNGC compatibility 170.000 cbm

Structural Parts

1. Jacket 4 legs 2. 54” Piles (2 sections x 4 legs) 3. Topside 4. Yoke

Pipeline System

Offshore 24" - 21 km

Onshore 24" - 1 km

Design Pressure 1350 psig

Design Temperature 150 F

Onshore Receiving Facility Capacity: 240 MMscfd

Delivery condition: 700 – 1000 psig and 63 - 66 F

Offtake Station Capacity: 80 MMscfd

Delivery condition: 232 – 537 psig and 60 F

Project Scope

• Tower Yoke was installed on 6 March 2014

• FSRU has arrived in the location on 8 May 2014

• FSRU was attached to the Tower Yoke on 15 May 2014

• Pre Commisioning in 15 – 20 Mei 2014 • Pipeline will be Tied-in on 23 May 2014

(Est.) • Pre Commisioning Pipeline will be

completed on 23 May – 17 June 2014 (Est.)

• Notice of Readiness will be issued on 19 June 2014 (Est.)

• LNG Carrier will be loaded on 20 June 2014 (Est.)

• Performance Test will be completed on 20 June – 20 July 2104 (Est.)

Update Status FSRU & Tower Yoke

• Construction of Offtake Station (OTS) has been completed on January, 29 2014

• Construction of Onshore Receiving Facilities (ORF) is 90 %, complete and will be completed on 15 – 30 May 2014 (est.)

• Contstruction Of Onshore & Offshore Pipeline 19 Km of 21 Km pipeline has been installed

• Mechanical Completion of all facilities will be completed at the latest on 18 June (est)

• Notice of Readiness will be issued at the latest on 19 June 2014 (Est.)

Update Status EPCIC (ORF & OTS)

16” and 12”; 88 KM; 80 MMSCFD

Bid Announcement 19 December 2012 Commencement Date 26 June 2013 Pipeline System MC 15 March 2014 Offtake Station MC 28 April 2014 Key Date A – Mech Completion 21 May 2014 Key Date B – Commissioning 20 June 2014 Project Hand Over 20 July 2014

Update Lampung Distribution’s Project

TECHNICAL CHALLENGES - PGN FSRU Lampung will be the first FSRU in the world which is moored at Tower Yoke Mooring System (TYMS). - LNG ship to ship transfer by using cryogenic hoses will be the first to be done in the world as well. - Mooring Support Structure (MSS) is the part of TYMS which is installed on board FSRU. The design of MSS and the timing of

its installation onboard FSRU are two of the biggest challenges during the FSRU building and TYMS construction phase. The tie-in on site will be the next challenge.

- The installation of pipeline highly depends on the TYMS piling installation due to the marine spread management. - Some parts of Rekayasa’s scope are installed on or connected to TYMS which require close interface coordination among all

parties.

LEGAL CHALLENGES - In total, 76 permits need to be obtained prior to construction and operation of FSRU and Mooring System. - Based on cabotage rule which requires domestic sea transportation of all goods and persons to be carried out by

Indonesian flagged vessels, FSRU Lampung is registered as dual class – IACS member and Indonesian classification society. - Tower Yoke Mooring System (TYMS) will be the center of the Floating Storage and Regasification Terminal (FSRT) in

Lampung. This kind of terminal is to be the first terminal in Indonesia. Based on Sea Communication Department in Indonesia, the permit required is categorized as Special Terminal Permit.

Project Challanges

Future business expansion of FSRU is a next challenge of energy industry in the world. Several options have been assessed by PGN with three main options under consideration are as follow:

A. LNG Breakbulking The idea of LNG Breakbulking is to utilize FSRU as a hub which is capable of transferring the LNG to smaller

size LNG Carrier. The requirement of FSRU for LNG Breakbulking idea has been assessed as follow:

- Capability assessment to unload LNG from FSRU to smaller LNG Carrier - Faster ship to ship transfer - Ship-to ship Transfer Simulation - LNG Metering and Sampling

B. ISO Tank The idea of ISO Tank solution is distributing LNG in pressurized standard tanks. These tanks are then

handled by either shipment or trucking system.

C. Small scale LNG Terminal Small scale LNG Receiving Terminal is necessary when either LNG Breakbulking or ISO Tank Project is

executed. This small scale terminal is needed in the location to where LNG is going to be transported.

Project Challanges

Malaysia

Malaysia

Papua

New

Guinea

Timor-Leste

East Market

Existing supply

Potential supply

Market locus (existing and potential) Pipeline

LNG receiving and storage facilities

West Market

• East market characteristic is scattered through

islands with small volume

• Some demand in west market are also with typical

condition

Indonesia Small Scale LNG Demand Analysis

Break Bulking

1.PGN is continuing its role by expanding the infrastructure and extensively developing the gas network to meet potential gas market throughout Indonesia as well as keep progressing with beyond pipeline program, i.e. developing floating regasification (FSRU) in a relatively short period of time. Upon completion of PGN FSRU Lampung, PGN is ready to deliver 240 MMscfd more as the contribution to meet the national gas demand especially in West Java and South Sumatera, where the demand is concentrated while the supply is discovered far away from the areas.

2. FSRU Lampung project has its uniqueness with its several stages and contract obligations which will be one of similar project benchmarking in the future.

3.Interface activities in FSRF Lampung Project especially during offshore installation should be well managed to achieve the completion of the project on schedule.

CLOSING REMARKS

THANKS