Upload
sampe-purba
View
152
Download
2
Embed Size (px)
Citation preview
DEVELOPING
GAS
INFRASTRUCTURES
CHALLENGES IN ARCHIPELAGIC COUNTRY
Sampe L. Purba
SKK Migas
Presented in EURASIAN Natural GAS INFRASTRUCTURE
Milan, Italy, May 2017
Agenda
2
Brief Introduction
Current Challenges
Lesson Learned From the Past
Way Forward
Concluding Remarks
Indonesia – In Brief
3
• Located in Equator• Consist of more than 13,000
islands • Size : East – West = 5,100 Km
North – South = 1,800 KmThree Time Zones
(Lisbon – Moskow = 5.134 km) Population = 250 millions ++ GDP (2016) = 940.95 Billion USD
Upstream Oil & Gas Condition
4
Oil & gas still dominatenational primary energydemand
Indonesia has become net oilimporter since 2004.
Since 2002 gas is moredominant than oil (in terms ofBOEPD).
Rapid natural productiondecline, high water content,and aging facilities.
Domestic infrastructure toutilize non-export allocated gasproduction is still insufficient.
Democratization and regionalautonomy: more stakeholdersdemanding more involvement.
4
Agenda
5
Brief Introduction
Current Challenges
Lesson Learned From the Past
Way Forward
Concluding Remarks
6
EAST JAVAWEST
JAVA
SOUTH SUMATER
A
RIAU ISLANDS
MASELA
PAPUA
ACEH
CENTRAL SULAWESI
NORTH SUMATER
A EAST KALIMANTAN
SOUTH SULAWESI
1.23 1.30
1.32
11.99
11.36
48.28
3.52
2.49
12.34 2.85
6.57
12.79
8.12
2.162.09
0.40 0.40
7.74
14.52
6.05
Reserves (in TCF)
Demands for 2010 - 2025 (in TCF)
Legends :
World’s Reserves
Indonesia (19%)
Indonesia contributes 19% of total Asia Pacific gas reserves
(source: BP Statistical Review of World Energy 2011)
Distribution of Gas Reserves in Indonesia
(source: Indonesian Gas Balance 2011)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Asia Pacific’s Reserves
8.6%
2.12
2.04
0.76
Nat
un
aD
-Alp
ha
CENTRAL SUMATERA
IDD
Tan
ggu
h T
rain
3
MA
SELA
Do
ngg
iSen
oro
Energy domestics demands focused in Java – inhabited by 70% population, while reserves spread elsewhere. Gas infrastructures link is a requirement.
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 Capacity: 3 MTPAOn stream January 2015
Donggi Senoro LNG PlantCapacity: 2 MTPAOn stream May 2015
Source: SKK Migas
7
8
Main Issues inManaging Indonesia
Gas and LNG
Issue:- Supply source
vs demands- Access to pipe
line- Bundling –
Unbundling
Issue: Credible and
stable absorption
Change of usage allocation
Real demand : Supply chain Buyer – trader –end user
Issue: Access to
infrastructures Regulated
margin, IRR , ability to pay
LNG vs domestic gas pipe
Issue:- Field economics price
vs ability to pay- Gas Price to End User- Gas Price for specific
non commercialallocation
Issue:- Volume, delivery periods dan
on- stream schedules- Reserves, Demand vs tenure
of PSC- Field economics and ability
to pay from different buyers
Agenda
9
Brief Introduction
Current Challenges
Lesson Learned From the Past
Way Forward
Concluding Remarks
Stranded Gas – Infrastructures – Exchange deal
10
JAMBI
BATAMSINGAPORE
MALAYSIA
Minas
RumbaiPekanbaru
Duri
Grissik Gas Plant(Corridor Block)
SUMATRA
• Decision Context (pre 1997)
• Gas reserve found in South Sumatra
• CPI burnt ca 70 MBOEPD to fuel
Steam Generators
• No nearby ready market to absorb
the gas
• “Fuel” is “own-use” under CPI PSC
• Focus is production of crude oil
• Decision Made (1997): Exhange Duri
Crude with Gas from Asamera
• Btu to Btu Exchange
• CPI releases the same amount of
“energy” as oil
• Such oil is recognized as “Fuel Own
Use”
• CPI PSC is kept no gain no loss
• Gas Reserves in South Sumatra monetized
• More oil released for export
• Corridor Block developed.
• Pipeline Gas Transportation initiated
• CPI uses environmentally “clean” fuel
• CPI kept whole financially
Gas To Oil Exchange Contract (1997 - 2021)
11
CPI / Rokan PSCOperation
Corridor BlockGrissik Plant
Gas Transportation28”, 536 Km pipeline
2 Compressors Stations
PTEA = 250 BBtudGSEA = 185 BBtud
39 MBopd
Dumai
DSF
Steam Gen
Power
Generation
PTEAOil
PTEA = Petroleum Transfer & Exchange AgreementGSEA = Gas Supply and Exchange Agreement
PTEALifters
• More Gas Reserves in South Sumatra monetized
• More oil released for export
• Increased Pipeline Capacity
•CPI uses environmentally “clean” fuel and
eliminate fuel oil
GSEAOil
23 MBopd
GSEALifters
WNTS – Exporting Pipeline gas
12
•First gas was delivered from the NatunaSea gas fields to Singapore via the 400-mile-long subsea West NatunaTransportation System (WNTS) as part of a22-year natural gas sales contract betweenPertamina and Singapore's SembCorp Gassigned in 1999.
• The WNTS is a joint venture betweenPertamina and three PSC's operated byConoco Indonesia, Premier Oil and GulfIndonesia Resources, respectively. Conocois operator of the WNTS
Agenda
13
Brief Introduction
Current Challenges
Lesson Learned From the Past
Way Forward
Concluding Remarks
Roadmap National Gas Infrastructures
14
Virtual Pipeline Cluster Concept
15
16
Cluster III Nusa Tenggara
17
ASEAN GAS INFRASTRUCTURE OVERVIEW
18
Source: Bureau of Energy Resources – U.S. Department of States
Indonesia LNG Moving Towards Dynamic Market
Traditional LNG Market:Japan, Korea, Taiwan and China Portofolio Player New Potential Market
19
Agenda
20
Brief Introduction
Current Challenges
Lesson Learned From the Past
Way Forward
Concluding Remarks
Upstream PSCs
21
Concluding Remarks
22
Indonesia as archipelagic country facing challengingconditions in developing gas infrastructures
Supply, Demand, Commercial, Infrastructures and Regulationsdo matters and needed to be formulated comprehensivelyand thoroughfully
Land based pipelines, Receiving Terminals, hub and clusteringsystem for virtual pipelines is one of the viable solutions
Regional and international markets also needs to bemaintained in order to pace with the interest of Contractorsand State
Brief CV
• Sampe L. Purba, is a Professional who is and has been in oil and gas relatedmanagerial business around 15 years. He has been involved in almost all valuechain of Oil and Gas key managerial role namely Planning department, Legal,General Support, Finance, Audit and Commercial. Currently he serves as ExecutiveSenior Advisor SKKMIGAS.
• SKKMIGAS is a Government-special installed body to manage all upstream relatedactivities in Indonesia, dealing with Contractors, Government and Supporting ValueChain in the Country
• Mr. Purba entered some Universities both domestics and abroad. He holdsundergraduate and post graduate degrees in Economics, Commerce and Law. Heis 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 (IPA), Indonesian Accountant Association (IAI), Indonesia Bar Association,Associate of 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 seminar domestic andabroad.
• Mr. Purba also active communicating his ideas on many strategic and current issues,through newspapers, radio, TV, journals and book. Some of his thought can befollowed in http.//maspurba.wordpress.com
24