Development of natural gas industry in Indonesia.
Natural gas has been growing in demand in the past several years with the growing use of gas as source industrial and household energy, as well as feedstock for fertilizer industry.
Gas is the country's third main source of energy after oil fuel (BBM) and coal. Gas accounted for 13.7% of the country's energy consumption in 2008.
Shortage in the supply of natural gas in the country has affected the operations of a number of industries notably fertilizer industry.
The gas price, which is not dictated by the market mechanism for domestic consumption has led to producers seeking to export most or all of their production resulting in scarcity in supply on the domestic market. The price of gas on the domestic market has always been cheaper than in export market.
The government sought to sort out the problem with the Domestic Market Obligation (DMO) policy and slapped restriction on gas exports from new gas field such as Donggi--Senoro to better guarantee supply on the domestic market.
The government has issued a number of policies to accommodate strong demand from industrialists to use as much as possible gas for domestic consumption. Among the policies include the change in the point of gas delivery from the plant gate in Singapore to the well heads in Indonesia, a move seen that could change the process of gas cost calculation and selling price.
Natural Gas Composition
Natural gas is made up of hydrocarbon gases, primarily methane (C1). It is usually found deep underground, often with deposits of oil, and is pumped out together with oil.
After it reaches the surface, the gas is separated from any oil or water that may have been mixed in the oil deposit. It is then processed to remove impurities, other gases such as propane and butane, and any remaining water or water vapor.
Natural gas differs from LPG (Liquefied Petroleum Gas / LPG) in its component, with LPG primarily made up of Propane (C3). LPG is distributed by vessel, while natural gas by pipeline.
Energy generated from natural gas is measured in calorie. The energy content is not the same among gas from different wells. The lowest calorie of natural gas in Indonesia is 5991 Kcal /m3 and the highest is 11127 Kcal /m3.
Natural gas distributed in Banten, Karawang, Bogor and Jakarta has a calorie of 7703-11127 Kcal /m3, and natural gas distributed in Cirebon has the lowest calorie of 5991 Kcal /m3.
Natural gas reserves to be depleted in 59 years
Indonesia's potential gas reserves recorded in 2008 totaled 170 TSCF with production rate per year of 2.87 TSCF. Based on the production to reserve ratio, Indonesia's gas reserves will last for 59 years from 2008.
The reserves could shrink or increase depending on new discovery. The latest major discoveries were in Tangguh, Papua and Masela, in southern Maluku.
There was almost none new gas drilling in the past three years. In 2007 drilling reached 22,626 feet.
Producing gas fields in Indonesia
The Donggi-Senoro gas fields in Central Sulawesi are operated by PT Pertamina EP and JOB Pertamina-Medco E&P Tomori. Development of the Donggi field is integrated in the area of Matindok, which includes the Donggi field, the Matindok field, the Maleoraja field and the Minahaki field. The Senoro field is the expansion of the Senoro gas field and the Tiaka oil field.
Proven reserves in the Matindok and Senoro blocks totals 2.3 trillion cubic feet (Tcf). Gas production from the Donggi Senoro fields could increase by 50 million metric standard cubic feet per day (MMSCFD) with the discovery of new reserves.
In the Senoro field there is potential addition of 0.6 TCF in reserve and in Matindok 0.76 TCF. The two fields, therefore, could turn out 455 mmscfd per day for 15 years. Investment needed for the development of the Senoro field is estimated to reach US$ 800 million and investment in Matindok at US$ 790 million.
The government has announced that gas from the two fields are all for domestic consumption, but the government may have to change the decision to attract investors development of the fields has been delayed long over disagreement on the government policy? The investors want that they are allowed to export part of the production. The consortium has proposed a scheme under which 70 MMSCFD of the production was for domestic consumption and 335 MMSCFD for exports. They considered the scheme most feasible.
Gas from the fields is expected to be used by PT Pupuk Sriwijaya (Pusri), PT Perusahaan Listrik Negara (PLN) and PT Panca Amara Utama (PAU). The three needs a total gas supply of 211 million MSCFD.
The consortium of PT Pertamina and PT Medco has agreed to lower the gas selling price to US$5-US$6 per MMBTU from US$ 6.16 per MMBTU, but they set requirement that the buyers must be ready in receiving the gas and there should be certainty in payment.
Gas production tends to be stable
The country's gas production in the past several years has relatively been stable or unchanged with production rate averaging 2.9 TSCF (trillion standard cubic feet).
The producers include Pertamina, holders of Pertamina Joint Operation Body (JOB), Pertamina Technical Assistance Contract (TAC) and Pertamina Joint Operation Body--Production Sharing Contract (JOB-PSC), and production sharing contract (PSC).
PSC contractors accounted for the largest part of the gas production contributing 2.5 TSCF, followed by Pertamina contributing 300 MSCF.
Production by holders of Pertamina JOB contracts and Pertamina TAC were small accounting for 18 million MSCF and 30 MSCF respectively in 2006 to 2008.
PSC contractors account for 88% of the country's gas production on the average with Pertamina accounting for 10% and Pertamina JOB and Pertamina TAC contractors accounting for 0.7% each
Utilization of natural gas
Natural gas is used by fertilizer industry, LPG industry, (liquefied natural gas (LNG) industry, condensate industry, gas drilling, etc.
Most or an average of 1.3 TSCF of the country's natural gas production is processed into LNG for exports with only 320 million MSCF for domestic consumption every years.
Total E&P Indonesie largest producer
Total E&P Indonesie, a PSC holder, is he largest producer of natural gas in Indonesia. The company produces gas from offshore field in East Kalimantan. In 2008, its production reached 1,009,972,142 MMSCF.
Total E&P Indonesie contribute around 40% to the country's total production of natural gas. Other major producers among PSC holders include Exxon Mobil, Conoco Phillips Grissik Ltd, Vico Indonesia and Petrochina Jabung Ltd.
Exports of natural gas on the decline
Indonesia exports most of its natural gas production with a smaller part left for domestic consumption. Exports have been made to Singapore, Japan, China, Korea, Thailand and Malaysia. Exports are mainly in the form of LNG, but there are also through transmission pipeline.
Domestic consumption of natural gas in the 2003-2007 period totaled 20,120,000 MMSCFD or 48 percent of the total production and exports totaled 21,550,000 MMSCFD or 52 percent of the total production.
Since 2009, the export percentage began to decline. In 2009 exports were less than 50 percent of the production only 46.08 percent or 3,667 MMSCFD.
An export of natural gas in LNG has tended to decline from year to year but exports through pipelines tended to increase. In 2007, the country's total exports of LNG fell 8.5 percent to 1,076,785 MMSCFD. In 2008, the exports fell further by 0.8 percent to 1,067,796 MMSCFD.
In the first 10 months of 2009, the country's LNG exports totaled only 841,911 MMSCFD or around 84,191 MMSCFD per month or lower than the average of 88,983 MMSCFD per months in the previous year.
Meanwhile, exports through pipelines were growing such as through the pipeline transporting gas from Grissik in central Sumatra to Singapore.
Volume of gas exports through pipelines has fluctuated in the past years but tended to rise. In 2007, exports through pipelines reached 297,000 MMSCFD, but fell 20 percent to 235,000 MMSCFD in 2008. In 2009, exports shot up reaching 291,000 MMSCFD in the first 10 months of hat year.
In he coming years gas exports are expected to shrink with growing domestic requirement.
Gas export contracts are generally long term. The country still has a number of long term contracts to honor and some of the contracts are effective only as from this year.
A long term 18-year contract for gas exports to Singapore between Premier Oil Natuna BV and Sembgas of Singapore signed in 2008 will be effective only as from this year. Gas is to be exported through submarine pipelines owned by Conoco Philips.
New export contracts in 2009 included one for 125,000 tons per year from the Tangguh field in Papua signed between Pertamina and a Japanese buyer Tohoku Electric Power Co.
Gas from Tangguh is exported in the form of LNG processed in the Tangguh LNG plant. The plant has a production capacity of 7.6 million tons of LNG a year. Around 7.4 million tons of LNG to be produced by the plant has been sold under contracts to a number of buyers. The contract buyers include Sempra Energy Marketing Co for 3.7 million tons per year, Fujian 2.6 million tons per year, and Korean buyers Posco and K-Power 1.1 million tons per year.
Meanwhile, a number of old contract will expire this year in 2010 such as one signed with Japanese western buyers.
According to plan, in 2011, the government will reduce new contracts for gas exports to guarantee domestic requirement.
Domestic gas requirement growing
The country needs natural gas for various purposes such as feedstock for fertilizer industry and as fuel for ceramic, and textile industries and as household fuel, and to feed gas fired power plants and as a source of energy in oil and gas mines.
Domestic gas requirement averages 5,557.6 MMSCFD in 2009 and 2010. Central and southern parts of Sumatra and western Java (Region III) are the largest consumers of gas with consumption averaging 2,994.7 MMSCFD in 2009-2014.
Gas as fuel is used by PGN of Batam, PGN of Pekanbaru, and PGN of West Java and LPG plants such as those of PT Ogspiras Basya Pratama in Palembang and PT. Titis Sampurna in Prabumulih. Industrial consumers using gas as fuel include PT. Asahimas in West Java.
Gas used to generate power is used by various power generating plants such as PLTG of Duri, PLTG of Teluk Lembu, PLTGU of Asrigita Prasarana, PLTG of Talang Dukuh, PLTG of Energi Musi Makmur, PLN of Injiniring, PLN of Kramasan, PLN of Borang, PLN of Muara Karang, PLN of Tanjung Priok, PLN of Muara Tawar, and PLN of Cilegon.
PT. Chevron Pacific Indonesia uses most of its gas production to generate energy for own and local requirement and for Joint Operation Body (JOB) of Suryaraya Teladan.
Gas feedstock is used by fertilizer factories such as those of PT Pupuk Sriwijaya in Palembang, and PT Pupuk Kujang in West Java.
The second largest consumer of natural gas is the eastern part of Java (Region V) with consumption averaging 843.8 MMSCFD mainly for combined cycle power plant (PLTGU) of Gresik owned by PLN. Petrochemical company PT Petrokimia Gresik also needs natural gas as feedstock. PGN, the state gas distributor by gas mainly to be sold as fuel for industries and household.
Indonesia is one of the world's largest producer of natural gas but its domestic requirement is not yet entirely secured as the country has long term contracts to exports a large part of its gas output. The government, however, has pledged to reduce exports to guarantee domestic supply.
Electricity sector the largest gas consumer
The electricity sector is the largest user of gas in the country with consumption averaging 2,130.7 MMSCFD in 2009 to 2014.
Gas requirement for the electricity sector is expected to decline in 2012 through 2014 demand from contract buyers will fall sharply despite there will be new demand from new contract customers in the central part of Sumatra and eastern Java in that period.
The second largest part of domestic gas requirement is for fuel averaging 1,385.5 MMSCFD, Demand from contract buyers will also fall despite an increase in demand from some of the customers starting 2011 in central part of Sumatra and central Java starting 2011.
The third largest is for feedstock mainly for fertilizer and petrochemical industries that need gas averaging 1,145.6 MMSCFD. The gas requirement for feedstock is expected to remain flat as there is no new fertilizer and petrochemical factories expected in the near future.
Requirement exceeds supply
Indonesia is one of the world's largest gas producers but a large part of its production is for export under long term contracts with foreign buyers resulting in shortage in domestic supply.
In the next several years, Indonesia is still expected to have a deficit in domestic supply. The shortage is estimated to reach around 10 MMSCFD in 2011 and it is forecast to rise to 170 MMSCFD in 2015.
Domestic supply includes gas for the electricity sector from gas producers under contracts with priority consumers PLN and IPPs, which are 51% owned by PLN and gas for PGN supplied by producers under contracts.
Domestic gas supply especially for PGN customers is expected to decline by 65 MMSCFD with the expiration of contract between PGN of Muara Karang and PT, Pertamina Hulu Energy ONWJ.
Around 165 industrial customers and 81 commercial customers of PGN will suffer as a result of the shortfall in gas supply; PGN also plans to cut gas supply 20% in April 1, 2010
BP Migas has told PT Medco Energy Internasional Tbk, the operator of Singa field of the Lematang block to supply PGN with 50 MMSCFD of gas.
Originally Medco planned to supply the gas to Chevron, which planned to use the gas for its project of enhanced oil recovery (EOR) steam flood in the Duri field of Rokan block, operated by Chevron Pacific Indonesia for three years.
PGN will buy gas from Medco at a price of US$5.7 per million Btu (1,000 MSCFD). The gas allocation will be distributed for industries in the western part of Java.
PLN short of gas
PT, PLN (Persero) has so far secured only 1,150 MMSCFD of gas for 2010 less than half of its total requirement of 2,538 MMSCFD.
Among the regions having deficit in gas supply include Belawan, in North Sumatra, Belawan needs 175 MMSCFD of gas but it has secured only 38 MMSCFD.
PLN plans to hold negotiations with PGN on additional supply of 150 MMSCFD, PGN will supply 150 MMSCFD from LNG Receiving terminal, which is yet to be built and expected to be operational only in September 2011.
Total gas requirement of Jakarta is around 575 MMSCFD until 2011, The increase in requirement followed the capacity expansion of Muara Karang power plant, PLN has secured gas supply under contracts include only 30 MMSCFD from PGB and 120 MMSCFD from PT, Pertamina Hulu Energy Offshore North West Java (Pertamina HE ONWJ), therefore, it still needs additional supply of 425 MMSCFD.
Other regions having deficit in gas supply is East Java with a shortage of 300 MMSCFD, East Java's gas requirement is 550 BBTUD this year as against supply available of 250 MMSCFD.
PLN has secured gas supply commitment for the years of 2011 and 2012 averaging 930 MMSCFD, PLN will receive gas supply of 720 MMSCFD from three LNG receiving terminals yet to be built including one each in Jakarta to supply 400 MMSCFD, in East Java to supply 160 MMSCFD, and in Medan to supply 160 MMSCFD.
PLN will also have gas supply from the offshore Kepodang gas field in the Java Sea operated by Petronas, The gas supply will be used to feed the combined cycle power generating plant (PLTGU) of Tambak Lorok averaging 116 MMSCFD, Other additional supply of 60 MMSCFD from Pertamina will be used for power plants in Bali.
Gas for PLN could be fully supplied if the project of LNG receiving terminals to be built in North Sumatra has been built and operational. The project is to be built by PGN alone with LNG to be supplied form Tangguh, The terminal to be built Western Java will be built jointly with Pertamina with LNG to be supplied from Qatar.
Contracts with domestic buyers
In 2009 a number of gas sales and purchase contracts were signed between producers and domestic buyers such as those from the electricity, fertilizer, petrochemicals and manufacturing sectors.
The contracts included four worth US$170,19 million in the electricity sector, six valued at US$284,48 million in the fertilizer and petrochemical sector and two valued at US$ 10,82 million in the manufacturing sector.
In 2009, altogether there were 21 contracts for gas and LPG sales and purchase contract between domestic suppliers and buyers, The contracts include four for 100 TBTU and 1 million metric tons of LPG.
In 2002 through 2008 there were 96 such contracts for 14 tcf of gas. In the 2003-2009 period, 137 head of agreements (HOA), gas sales and purchase agreement (PJBG) and amendment to gas sales and purchase agreements were signed.
In February, 2010, six contracts were signed to be supplied through pipelines for more than 75,900 MMSCFD valued at US$ 540 million. The contracts included 3 HoA, 2 Amendment to gas sales and purchase agreement and 1 gas sales and purchase agreement.
Around 65,340 MMSCFD of gas bought by Pertamina would be used as feedstock for natural gas liquefaction (NGL) plant in to be built in South Sumatra by Pertamina Gas (Pertagas) and El of South Korea.
The NGL project is estimated to cost US$192 million with contractor PT Tripatra Engineers and Contractor.
Construction of the plant, which will need 350 MMSCFD of gas as feedstock was to start in March 2010 producing 540 tons of LPG, 150 tons of propane and 2,150 barrels of condensate per day.
Other contracts include one between Pertamina EP as the producer and Medco EP Indonesia, Gas for 1,39 Btu, which will be used by Medco to help pump out more oil from its Ibul field in South Sumatra Extension (SSE) block, Contract is valued at US$3,7 per million Btu (1,000 MSCFD).
Two manufacturing companies buying gas include PT Pelangi Cakrawala Losarang with factory in Losarang, Indramayu.
Based on a regulation of the ESDM minister No,03/ 2010, article 6 point 3, the priority in the use of gas in the country is given to four sectors--artificial lift and enhanced oil recovery to increase oil production, fertilizer industry, power plants and other industries.
Coal Bed Methane to offset deficit
Based on the Indonesian gas balance for 2009-2020 issued by the government, gas from 10 first coal bed methane (CBM) contracts has been taken into account potential supply.
In order to make up for the deficit in d production and total supply, the government launched CBM crash program, CBM projects in two CBM contract under the program are expected to start turning out at least 450 MMSCFDD of gas in 2011.
So face there has been 14 CBM contracts including 10 contracts signed in 2007
--2008 and 4 in August 2009, In 2010 the government offered new system of contract for natural gas producer called gross production sharing contract (GPSC) instead of previous system of PSC/ KKS.
The difference between PSC contract PSC and GPSC lies in whether there is cost recovery or there is not, Under the PSC contract the government will pay all cost spent by the investors when CBM is discovered and produced, Under GPSC, there is no cost recovery, All investment is part of the capital of the investor.
Indonesia gas CBM reserves estimated to total 453.3 trillion cubic feet (TCF) in 11 hydrocarbon basins or the second ;largest in the world, Around 112.47 TCF of the reserves are proven and 57.60 RCF are potential reserves.
The largest reserves are in the South Sumatra basins holding a reserve of 183 TCF, Barito basin with reserves of 102 TCF, Kutai basin with reserves of 80.4 TCF and the Central Sumatra basins 52.2 TCF.
The government to build distribution and transmission networks
Limited availability of transmission and distribution networks is a one of the problems in increasing the use of gas, Early 2010, the government issued a ministerial regulation No. 0225 Year 2010 on National Master Plan of Transmission and Distribution of natural gas 2010-2025.
Under the decision gas networks are divided into five categories--open access, dedicated downstream, dedicated upstream, for own use and city gas, According to plan, the networks to be built include networks of Sumatra, networks of Aceh--Lhokseumawe, networks of Aceh- North Sumatra, Central Sumatra--South Sumatra--Lampung, networks of Lampung--West Java, networks of Java, networks of Banten--DKI--West Java, networks of Central Java--East Java, Networks of Kalimantan, networks of East Kalimantan, networks of Sulawesi, and networks of Maluku--Papua.
Networks of Transmission and distribution
Currently there are 4 networks of natural gas transmission and 3 networks of natural gas distribution in Indonesia. Transmission networks are:
South Sumatra--West Java (South Sumatra To West Java / SSWJ) This network is more than 1,000 km long built to transport gas from the Grissik and Pagardewa gas fields of ConocoPhillips and Pertamina, This pipeline is the longest gas pipe in Indonesia serving to help solve energy problem in western Java.
This network of gas pipeline is used to carry gas from Pertamina to power plant in Sicanang, Medan.
This network is 536 km long with a transporting capacity of 420 MMSCFDD, This network is operated by PT, Transportasi Gas Indonesia (Transgasindo), a subsidiary of PGN, Since 1998, this network of gas pipes has been used to channel gas from the gas field of ConocoPhillips in South Sumatra to Caltex in Duri, Caltex uses the gas to help pump out crude oil in it's enhance oil recovery (EOR) project and to generate power in the project.
This network of gas transmission pipes is 477 km long from Grissik to Singapore with a carrying capacity of 350 MMSCFDD, This network, which is operated by Transgasindo supplies gas for Singapore.
A network of gas distribution pipelines in the country is operated by PGN, The networks cover Jakarta and part of cities in West Java, East Java and Sumatra, The total length of the networks of distribution pipelines is 3,480 km with a capacity of 1,103 MMSCFD.
Plans for networks of distribution 2010
The use of natural gas for households in the country has been increasing necessitating development of more gas distribution pipelines.
Development of networks of gas distribution for households is a national priority under the program of energy diversification, reduction of fuel subsidy, provision of clean and cheap energy and conversion of kerosene into LPG to economize on oil.
The government has built networks of natural gas infrastructure for distribution to households as the private sector has little interest in the business area.
Networks of gas distribution are owned by the central government but their management is handed over to the business sector through auctions.
In 2009, the government built a number of networks of natural gas distribution pipelines for households including in Palembang and Surabaya.
Networks in Palembang are built in the lower districts of Siring Agung and Lorok Pakjo, benefiting 3,310 households.
In Surabaya, the networks are built in the lower district of Kalirungkut and Rungkut Kidul, to serve 2,900 households, Gas for Palembang is supplied by PT Medco E&P Indonesia and for Surabaya by PT Lapindo Brantas.
In 2010, a number of project of networks of natural gas for households will be built in Depok and Bekasi, West Java, Sidoarjo in East Java and Tarakan, East Kalimantan.
The networks in Depok will be built in the lower districts of Beji and Beji Timur, and in Bekasi in Perumnas Bumi Bekasi Baru, In Tarakan the networks will be built in the lower districts of Karang Balik and Sebengkok, and in Sidoarjo, the networks will be built in Medaeng, Tambaksawah, Ngingas and Wedoro.
In each of the cities between 3,000 and 4,000 households will benefit from the networks.
Gas for the Tarakan networks will be supplied by Medco E&P, for Depok and Bekasi networks will be supplied by PT Pertamina EP; and for the ones in Sidoardjo it be supplied by PT Lapindo Brantas.
Prospects and Conclusion
Indonesia is one of the world's largest producers of natural gas but its gas supply still falls short of domestic requirement. The shortage in domestic supply is caused by large exports under long term contracts with foreign buyers such as in Japan, South Korea and Taiwan.
Meanwhile, domestic gas requirement has continued to increase especially after the government's diversification program in sources of energy in its bid to economize on more expensive oil. The growing demand for gas has resulted in wider deficit in supply. The deficit is feared to widen in the coming years unless the diversification program is successful, Domestic gas requirement is growing fast especially with growing use to generate power and fuel industries, The largest gas consumer in the country is the electricity sector, followed by the manufacturing sector and the household sector.
The government has sought to cope with the deficit in domestic supply by adopting a new policy giving priority in the allocation of gas output for domestic supply. Under the policy, gas produced by new contractors including those holding renewed contracts are required to give priority to selling their gas to local consumers to help boost domestic industry. For Medco is required to sell gas from its Singa field to PGN, which will use it to fuel domestic industries, Previously Medco sold the gas to PT, Chevron Pacific Indonesia.
The government also seeks to solve gas supply deficit by encouraging the production and use of CBM as new industrial fuel. However, supply is also hampered by inadequate availability of transmission and distribution networks to facilitate distribution to the end users. All gas production centers are generally located far away from the consumers that gas transmission and distribution infrastructure is needed.
Among the steps taken to cope with the problems in distribution include plans to build LNG receiving terminals in a number of places including North Sumatra, western and eastern Java and distribution networks in a number of city areas. The government has issued a blue print for gas transmission and distribution systems to be built in 2010-2025.
The prospects of business in natural gas in the country are encouraging as gas is more efficient than oil as fuel. Gas, of which the country still has large reserves, has been used as a cheaper alternative source of energy beside coal.
The fact that gas reserves in the country could still last for the next 60 years will make the prospects more encouraging when the country's oil reserves are dwindling fast. In addition, the country also has large reserve of other type of gas in the form of CBM.
Table--1 Composition of natural gas Components Volume (%) C1 45-100 C2 0.01-10 C3 0.01-16 C4+ 10-16 CO2 0-30 N2 0.1-6 Source: PGN Table--2 Calorific value of natural gas in several distribution areas Operation areas BTU /SCF Kcal /m3 Banten, Karawang, Bogor, Jakarta 900-1300 7703-11127 Bekasi 900-1200 7703-10271 Cirebon 700 5991 Palembang 950-1200 8131-10271 Surabaya, Pasuruan, Sidoarjo 950-1250 8131-10669 Medan 950-1300 8131-10127 Batam 950-1250 8131-10669 Riau/ Jambi 950-1250 8131-10669 Source: PGN Table--3 Indonesia's gas reserves, 2008 Reserves TSCF Proven reserves 112.47 Potential reserves 57.60 Total reserves 170.07 Source: Oil and Gas Directorate General Table--4 Gas drilling Year Gas Well (TVD Feet) 2006 0,00 2007 22,626.00 2008 0.00 2009 0.00 2010 0.00 Source: Energy and mineral ministry (ESDM), processed resources Table--5 Production natural gas 2006--2009 I (MSCF) Producers 2006 2007 Pertamina 306,482,180 274,097,980 Pertamina JOB 20,508,017 19,464,222 Pertamina TAC 41,585,873 10,027,040 Pertamina JOB-PSC -- -- Production Sharing 2,585,523,351 2,501,951,031 Contract (PSC) Total 2,954,099,421 2,805,540,273 Producers 2008 2009 * Pertamina 315,383,158 58,439,140 Pertamina JOB 16,143,995 220,900** Pertamina TAC 22,084,122 3,955,094 Pertamina JOB-PSC -- 2,406,838 Production Sharing 2,531,716,545 430,438,612 Contract (PSC) Total 2,885,327,820 495,460,584 Source: BP Migas, proc * Semester 12009 ** Pertamina JOB & UB Table--6 Production of natural gas by producers and shares Producers 2006 2007 2008 Pertamina 10.4% 9.8% 10.9% Pertamina JOB 0.7% 0.7% 0.6% Pertamina TAC 1.4% 0.4% 0.8% Pertamina JOB--PSC Production Sharing Contract (PSC) 87.5% 89.2% 87.7% Total 100 100 100 Source: Data Consult Table--7 Utilization of natural gas (000 MSCF) Utilization 2006 2007 2008 2009 * Own use 322,651 284,255 298,142 52,842 Local 337,126 307,381 345,649 82,163 Fertilizer 189,817 197,946 173,196 38,301 Refinery 15,159 24,972 29,727 5,086 LPG/ Lex PI 32,879 35,096 13,196 3,104 Condensate 14,272 10,165 3,858 691 LNG 1,436,091 1,300,348 1,270,854 196,005 PGN 332,011 321,281 402,042 31,203 Gas 161,555 226,184 234,965 64,747 Total 2,841,563 2,707,628 2,771,627 474,143 Shrinkage 705 308 294 84 Flared 111,832 97,605 113,406 35,392 % gas Used 96,19 96,51 96.06 93.04 Source: BP Migas, processed * Semester I 2009 Table--8 Production of natural gas by PSC holders, 2006--2009 I (MMSCF) Onshore 2006 2007 1. EXXON MOBIL 322,253,950 280,683,520 2. ASAMERA OIL (N.S) GULF (ACEH) LTD 0 0 3. PT. CPI 25,108,170 22,638,860 4. BUMI SIAK PUSAKO 0 0 5. C & T (MFK) 0 0 6. C & T (SIAK) 0 0 7. PETROSELAT LTD 40,516 38,841 8. CONOCO PHILLIPS GRISSIK LTD 209,812,316 225,889,014 9. MEDCO E&P INDONESIA LEMATANG 416,333 511,382 10. MEDCO E&P INDONESIA (SS+CS) 26,511,417 28,629,256 11. MEDCO E&P INDONESIA (RIMAU) 9,008,820 5,950,772 12. EMP KANGEAN 22,880,004 16,529,919 13. VICO 208,370,777 184,745,653 14. MEDCO E&P INDONESIA KALIMANTAN 7,755,439 6,515,990 15. PETROCHINA BERMUDA 5,529,234 5,338,788 16. PETROCHINA JABUNG 105,485,362 105,864,165 17. ENERGY EQUITY EPIC SENGKANG 9,318,943 8,886,955 18. LAPINDO BRANTAS (EMP BRANTAS) 14,378,955 6,155,352 19. CITIC SERAM ENERGY 874,990 843,663 20. PEARL OIL KUALA TUNGKAL 567,300 201,480 21. PETROCHINA BANGKO 74,850 43,957 22. BENUO TAKA 337,725 472,214 23. CONOCO PHILLIPS SOUTH JAMBI 8,360,197 5,827,744 24. KALILA (KORINCI BARU) 0 2,154,628 25. MOBIL CEPU LTD 0 0 Sub Total 977,085,298 907,922,153 Offshore 1. PREMIER OIL 52,453,428 53,950,918 2. CONOCO PHILLIPS NATUNA 126,898,420 164,501,106 3. STAR ENERGY (KAKAP) 33,088,628 32,564,181 4. KONDUR PETROLEUM S.A 2,241,457 2,996,568 5. CNOOC SES 25,716,079 36,695,155 6. KODECO 24,229,599 21,242,464 7. ARII/BP-ONWJ 136,798,950 118,868,031 8. CAMAR RES. CANADA 0 496,063 9. CHEVRON IND. CO. 75,407,168 74,667,276 10. CHEVRON MAKASSAR 31,818,462 29,390,783 11. TOTAL E&P INDONESIE 1,097,341,041 1,016,112,573 12. SANTOS (MADURA OFFSHORE) 2,444,821 24,947,617 Hess (Ujung Pangkah) 0 17,596,143 13. BP TANGGUH 0 0 14. SANTOS (SAMPANG) 0 0 Sub Total 1,608,438,053 1,594,028,878 Total Production Sharing 2,585,523,351 2,501,951,031 Onshore 2008 2009 * 1. EXXON MOBIL 242,110,140 116,938,670 2. ASAMERA OIL (N.S) GULF (ACEH) LTD 0 0 3. PT. CPI 17,482,810 8,376,110 4. BUMI SIAK PUSAKO 0 0 5. C & T (MFK) 0 0 6. C & T (SIAK) 0 0 7. PETROSELAT LTD 37,005 15,062 8. CONOCO PHILLIPS GRISSIK LTD 266,171,646 159,080,998 9. MEDCO E&P INDONESIA LEMATANG 50,979 10,980 10. MEDCO E&P INDONESIA (SS+CS) 26,968,075 15,236,654 11. MEDCO E&P INDONESIA (RIMAU) 6,212,920 2,216,600 12. EMP KANGEAN 12,986,714 5,500,709 13. VICO 176,937,223 84,356,634 14. MEDCO E&P INDONESIA KALIMANTAN 7,254,483 1,419,888 15. PETROCHINA BERMUDA 5,937,174 2,969,030 16. PETROCHINA JABUNG 100,439,107 48,048,636 17. ENERGY EQUITY EPIC SENGKANG 10,261,654 7,050,998 18. LAPINDO BRANTAS (EMP BRANTAS) 3,747,870 1,597,416 19. CITIC SERAM ENERGY 649,290 252,530 20. PEARL OIL KUALA TUNGKAL 223,859 69,427 21. PETROCHINA BANGKO 139,768 70,696 22. BENUO TAKA 420,539 183,062 23. CONOCO PHILLIPS SOUTH JAMBI 3,893,380 1,073,495 24. KALILA (KORINCI BARU) 6,251,910 3,435,890 25. MOBIL CEPU LTD 0 2025 Sub Total 888,176,546 458,173,378 Offshore 1. PREMIER OIL 52,308,670 25,842,833 2. CONOCO PHILLIPS NATUNA 166,898,288 100,640,330 3. STAR ENERGY (KAKAP) 29,160,072 11,802,043 4. KONDUR PETROLEUM S.A 4,423,636 3,433,291 5. CNOOC SES 58,250,750 27,858,417 6. KODECO 15,389,320 11,713,237 7. ARII/BP-ONWJ 125,389,650 53,224,700 8. CAMAR RES. CANADA 471,980 481,230 9. CHEVRON IND. CO. 81,252,251 32,514,470 10. CHEVRON MAKASSAR 34,574,664 15,654,524 11. TOTAL E&P INDONESIE 1,009,972,142 491,066,468 12. SANTOS (MADURA OFFSHORE) 33,438,084 21,269,553 Hess (Ujung Pangkah) 32,010,492 13,551,925 13. BP TANGGUH 0 25,942,360 14. SANTOS (SAMPANG) 0 198,230 Sub Total 1,643,539,999 835,193,611 Total Production Sharing 2,531,716,545 1,293,366,989 Source: ESDM, processed Table--9 Exports of gas through pipelines, 2005-2009 * Year Volume Growth Exports Growth of LNG through exports pipelines (MMSCFD) (MMSCFD) 2005 -- -- 168,320 -- 2006 1,176,287 -- 161,555 -4 2007 1,076,785 -8.5 295,669 83 2008 1,067,796 -0.8 234,964 -20 2009 * 841,911 -21.2 291,529 24.1 Note: *) Until October 2009 Source: ESDM, Data Consult Table--10 Indonesia's gas requirement, 2010 by areas (MMSCFD) Areas Sectors 2009 2010 2011 NAD Electricity 27 27 27 (Region I) Feedstock 180.8 180.8 180.8 Total 207.8 207.8 207.8 Northern Electricity 211 211 211 Sumatra Industrial (Region II) fuel 21 21 21 Energy 8.7 8.7 8.7 Total 240.7 240.7 240.7 Central and Electricity 1,069.9 1,069.9 1,071.2 southern Feedstock 335.5 335.5 335.5 Sumatra and Fuel 1,191.2 1,188.5 1,187.6 western Energy 481.9 473.7 464.9 Java Total 3,078,5 3,067.6 3,059.2 (Region III) Central Java Electricity 193 193 193 (Region IV) Fuel 2.7 0.7 0 Total 195.7 193.7 193 2009 2010 2011 Eastern Java Electricity 709.4 828.2 925.5 (Region V) Feedstock 85 145 145 Fuel 196.1 194.8 195.8 Energy 99 99 99 Total 747.3 865.4 963.7 Eastern Electricity 67.5 67.5 67.5 Kalimantan Feedstock 436 436 436 (Region VI) Fuel 0 0 0 Energy 49.8 49.3 45 Total 553.3 552.8 548.5 Central part Feedstock 0 70 70 of Sulawesi Electricity 104 104 104 (Region VII) Total 104 174 174 Southern Electricity 38 38 38 Sulawesi (Region VIII) Papua Fuel 2 2 2 (Region IX) South Maluku 0 0 0 (Region X) Natuna 0 0 0 (Region XI) Total 5,167.3 5,342 5,426.9 domestic Areas Sectors 2012 2013 2014 NAD Electricity 27 27 27 (Region I) Feedstock 180.8 180.8 180.8 Total 207.8 207.8 207.8 Northern Electricity 211 211 211 Sumatra Industrial (Region II) fuel 21 21 21 Energy 8.7 8.7 8.7 Total 240.7 240.7 240.7 Central and Electricity 1,071.2 1,045.8 1,031.5 southern Feedstock 335.5 335.5 335.5 Sumatra and Fuel 1,163.6 1,152.6 1,117.5 western Energy 427.1 422.2 325.2 Java Total 2,997.4 2,956.1 2,809.7 (Region III) Central Java Electricity 193 193 193 (Region IV) Fuel 0 0 0 Total 193 193 193 2012 2013 2014 Eastern Java Electricity 889.5 725.7 451.3 (Region V) Feedstock 145 145 145 Fuel 194.8 194.8 194.8 Energy 84.2 59.4 59.4 Total 929.9 823.2 733.5 Eastern Electricity 67.5 67.5 67.5 Kalimantan Feedstock 436 436 436 (Region VI) Fuel 0 0 0 Energy 45 45 45 Total 548.5 548.5 548.5 Central part Feedstock 70 70 70 of Sulawesi Electricity 104 104 104 (Region VII) Total 174 174 174 Southern Electricity 38 38 38 Sulawesi (Region VIII) Papua Fuel 2 2 2 (Region IX) South Maluku 0 0 0 (Region X) Natuna 0 0 0 (Region XI) Total 5,331.3 5,183.3 4,947.2 domestic Source: BPH Migas, Data Consult, processed Table--11 Gas requirement by sectors (MMSCFD) Sectors 2009 2010 2011 2012 Electricity 2,077.6 2,137.0 2,235.6 2,217.6 Fuel 1,413.0 1,407.0 1,406.4 1,381.4 Feedstock 1,037.3 1,167.3 1,167.3 1,167.3 Energy 639.4 630.7 617.6 565.0 Total 5,167.3 5,342.0 5,426.9 5,331.3 Sectors 2013 2014 Avg Electricity 2,110.3 2,006.3 2,130.7 Fuel 1,370.4 1,335.3 1,385.5 Feedstock 1,167.3 1,167.3 1,145.63 Energy 535.3 438.3 571.05 Total 5,183.3 4,947.2 5,233.0 Source: Data Consult, processed Table--12 Deficit in domestic gas supply Year Deficit for Total deficit old customers including for new (MMSCFD) customers, (MMSCFD) 2011 10 857 2012 95 1,070 2013 110 1,118 2014 140 1,168 2015 170 1,221 Source: Data Consult Table--13 Several domestic gas sales and purchase agreement signed in 2009 Sectors Buyers Sellers Volume Electricity PT Sarana PT Pertamina EP 6,660 MMSCFD Pembangunan Palembang Jaya (BUMD) PT Indonesia PT Pertamina EP 8,750 MMSCFD Power Company of PT Pertamina 18,250 MMSCFD reg, adm of Hulu Energy, Malamoi Olom Petrochina Wobok PT Gasuma PT Pertamina 37,230 MMSCFD Corporindo Hulu Energy, Petrochina East Java Fertilizer PT Pupuk BP ONWJ 62,270 MMSCFD and Kujang petrochemical Cikampek PT Pupuk PT Pertamina EP -- Sriwidjaja Pusri PT Pertamina Gas factory JOB PT Pertamina -- Pertamina (persero) Talisman PT Pertamina PT Pertamina Gas Hulu Energy OK, Talisman OK Ltd and PT Pertamina EP, PT Pupuk ExxonMobil Oil -- Iskandar Indonesia Muda, Industry PT Source PT Pertamina 13.2 MMSCFD Daya Kelola EP, (CO2) and 1,650 MMSCFD (fuel gas), PT Henrison Petrochina Int 365 MMSCFD Iriana (Bermuda) Ltd, Sectors Length of Description contract Electricity 10 years For electricity in Palembang 5 years Power plant of Sunyaragi 10 years 6 years Fertilizer 2 years -- and petrochemical 5 years -- 5 years Gas bought from PT Pertamina Hulu Energy Raja Pempirai and PT Golden Spike Energy Indonesia, -- -- 8 years To feed Pusri factory -- -- Industry 10 years -- 1 year -- Source: BP Migas, Data Consult Table--14 Several contract with domestic gas buyers through pipelines Agreements Sellers Buyers HoA PT Pertamina PT, Pertamina EP (Persero) HoA Petrochina Company of Sorong International district adm, Bermuda Ltd, (PT,Malamoi Olom Wobok) HoA Kodeco Energy Co, Company of Gresik Ltd, district adm (PT, Gresik Migas) PJBG PT, Pertamina EP PT,Pelangi Cakrawala Losarang PJBG PT, Pertamina EP PT, Tossa Sakti PJBG PT, Pertamina EP PT, Medco E&P Indonesia Total Agreements Volume Note (MMSCFD) HoA 65,359 For NGL project in South Sumatra (E1- Pertagas), HoA 1,460 For power plants in Sorong regency, HoA For factory in Gresik regency, PJBG 6,230 For factory in Losarang, West Java, PJBG 1,460 For factories Central Java, PJBG 1,395.96 To help pump out oil Total 75,904.96 Source: BP Migas Table--16 Natural gas transmission pipeline in operation Transmission lines Length Capacity (km) (MMSCFD) South Sumatra--West Java 1,000 -- Medan 145 -- Grissik--Duri 536 420 Grissik--Singapore 477 350 Total 2,158 770 Source: PGN
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|Title Annotation:||OIL AND MINING|
|Comment:||Development of natural gas industry in Indonesia.(OIL AND MINING)|
|Publication:||Indonesian Commercial Newsletter|
|Article Type:||Statistical data|
|Date:||Feb 1, 2010|
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