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Who's Who In Indonesia's Petroleum Sector - Tubagus Haryono.

The chairman of the regulating agency for the fuels market and Indonesia's state-owned network of pipelines BPHMigas, Haryono's responsibility is huge and spans across an increasingly widening range of issues. Apart from his role as regulator of the fuels market (see down10IndnsEnrBasMar7-11), Haryono has the challenging task of getting the domestic energy base to be adequately supplied with natural gas - from both conventional and alternative sources such as shale gas and coal-bed methane (CBM).

In the latter respect, BPHMigas has to make sure that Indonesia has adequate pipelines for fuels and natural gas. Currently, only 3,500 km of transmission pipelines and about 4,000 km of gas distribution pipelines are in operation serving just six cities in the archipelago. Government agencies say investments of $100bn will be required to double the existing infrastructure - the minimum needed - based on the current price of $2.5m per kilometre, which is equal to the nation's entire 2010 budget; and that does not include the costs of gas E&P and field development capital and operating expenditures.

This year, Indonesia will use 56.78%, or 4,366 trillion BTUs/day of its natural gas production, with the remaining 43.22% destined for export in LNG form and by pipeline. However, some customers are balking at having to pay more than $5/m BTUs, while the lack of gas infrastructure is hampering distribution out of the major cities.

The investments required in power generation to meet the government's target of 650GW of installed capacity in 2050, compared to the current 36GW, is $1.86tn based on $3m per MW. This is 18 times last year's national budget.
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Publication:APS Review Downstream Trends
Geographic Code:9INDO
Date:Mar 28, 2011
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