PUSHING FORWARD WITH LNG SUPPLY AND INFRASTRUCTURE

TO SUPPORT INDONESIA’S POWER SECTOR

6th Annual LNG Transport, Handling & Storage Forum

Bali, 14 September 2016
 Fuel Mix 2016 (Prognosis)
Fuel Type PLN PLN+IPP
Coal Fuel Oil
Hydro Geothermal + RE
Coal 106.844,98 149.210,65
Gas Fuel Oil 16.279,28 16.954,01
300,000 Hydro 12.061,80 16.509,41
Geothermal + RE 4.231,01 11.559,96
250,000 Gas Gas 57.032,31 65.347,20
29%
TOTAL 196.449,38 259.581,23

200,000
PLN Coal
Geo- 54%
thermal
+ RE
ENERGY GWh

2% Hydro
150,000 6% Fuel Oil
8%

Gas
100,000 25%

PLN PLN+IPP
20152016 20152016
50,000 COAL : 52 %  55 % Geo-
PLN+IPP COAL : 56 %  58 %
thermal Coal
FUEL OIL : 11 %  8 % + RE 57% FUEL OIL : 9 %  7 %
HYDRO : 6%  6% 4% HYDRO : 6%  6%
Hydro
GEO + RE : 2 %  2 % 6% GEO + RE : 4 %  4 %
0 Fuel Oil
PLN PLN+IPP GAS : 29 %  29 % 7% GAS : 25 %  25 %

Compared to the realization in 2015 with prognosis in 2016, the portion of coal will rise 2%-3% in the fuel mix, while fuel oil decreased 2% -3%.
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 Electricity Production Cost in Indonesia
OVERVIEW OF OPERATING EXPENSES PT PLN (PERSERO) IN 2015
*) Based on PLN's Financial Report (Final & Published)

- Purchase Electricity Rp51,69 T - Maintenance Rp 17,59 T USD 19

Purchase Electricity, - Lease Rp 7,56 T Maintenance, - Personnel Rp 20,32 T BILLION
Lease, Depreciation - Depreciation Rp21,42 T Personnel, Others Others Rp 7,09 T

USD 1 = Rp 13000

High Voltage Transmission Medium V. Distribution Distribution Total Operating Expenses

Fuels & Lubricants Power Plants
Transmissions Substations Transmissions Substations Lines Rp 246,26 T

USD 3,7
BILLION
High Voltage Medium V. Residential & Small
Fuel Expenses Breakdown Consumers Consumers Industries Consumers
USD 1 = Rp 13000- Coal Rp 32,46 T 26,9%
- Gas Rp 48,35 T 40,1%
- Oil Rp 35,99 T 29,8%
of Total Fuels & Lubes Electricity
- Geothermal Rp 3,26 T 2,7% Energy
- Hydro Rp 0,24 T 0,2%
- Lubricants Rp 0,29 T 0,2%
49%
Total Fuels & Lubricants Rp 120,59 T
of Total Operating Expenses

Potential efficiency of the fuel is very significant to reduce operating expenses in PLN.
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 Gas Utilization in 35 GW Power Program

Type of Power Plant IPP PLN Total Portion

Coal Fired:
19.813 MW Coal Fired 17.598 2.215 19.813 55,6%
Hydro-electric 582 1.389 1.971 5,5%
Gas Fired 6.123 6.785 12.908 36,2%
Geothermal 555 170 725 2,0%
Gas: Geothermal: Wind 180 - 180 0,5%
12.908 MW
35.000 725 MW Biomass
Total
30
25.068
-
10.559
30
35.627
0,1%
100,0%

MW
Source: RUPTL 2016-2025

Additional 35 GW by 2019 is required based on

following assumptions :
Hydro: Others:
1.971 MW - Economic growth 6,6 % per annum
210 MW
- Power demand growth 8,3 % per annum
- Electrification ratio increased to 97 %
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Confidential and Proprietary. Any use of this material without specific permission of PLN is strictly prohibited. 9/06/2016
 New Gas Fired Power Plants in Indonesia (2016-2025)
RUPTL 2016-2025

KALIMANTAN (KAL) SULAWESI NUSA

Gas Quantity Capacity
TENGGARA (SNT)
Gas Quantity Capacity
MALUKU PAPUA (MP)
150 BBTUD 1.631 MW Gas Quantity Capacity
223 BBTUD 2.740 MW
117 BBTUD 1.070 MW

INDONESIA
SUMATERA (SUM) Gas Quantity Capacity
Gas Quantity Capacity
364 BBTUD 3.470 MW
JAWA BALI (JB) 2.189 BBTUD 22.117 MW
Gas Quantity Capacity
1.335 BBTUD 13.206 MW

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 Electricity Gas Balance (PLN + IPP)
In the period 2016-2025, the gas demand for electricity grows significantly approx 3.500 BBTUD in 2025.

Supply Contract vs Demand

4,000

3,500

3,000

RMP
2,500
SNT
KAL
BBTUD

2,000
JBTB
1,500 JBT
JBB
1,000 SUM
SUPPLY CONTRACT
500

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

Untill 2025, additional gas supply needed is approx 2000 BBTUD.

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 Current/Potential Domestic Gas Sources

KALIMANTAN
LNG Bontang, Simenggaris,
Bangkanai, Bunyu, ENI Muara
Bakau, IDD
SULAWESI
SUMATERA Donggi Senoro,
Jambi Merang, Grissik, Lematang, Matindok,
Natuna, Sengkang/Wasambo
ENI Krueng Mane MALUKU & PAPUA
Salawati, Tangguh,
Masela

JAWA BALI
ONWJ, CNOOC, WMO, Kepodang,
Cepu, Gundih, Kangean, HCML, Santos ,
LNG NR (ex. Tangguh/Bontang)

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 Shall We Import ?

Can exploration of domestic gas

resources wait until its commercial
production met the growing
capacity to pay of domestic off
takers ?

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 Gas Supply Alternatives

LNG Storage Power Plant

LNG Regasification Location 1
Import
Terminal

LNG Storage Power Plant

Virtual Regasification Location 2
Pipeline

LNG
Domestic
Terminal
LNG Storage Power Plant
Regasification Location n

Scheme:
1. IPP + Gas Value Chain
2. EPC (PLN) + Gas Supply (Third Party)
3. EPC (PLN) + Gas Supply (PLN)
4. IPP + Gas Supply (PLN)
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 Additional Gas Fired Power Plants 2016 - 2025

9/05/2016 10
Confidential and Proprietary. Any use of this material without specific permission of PLN is strictly prohibited.
 Requirement of LNG Receiving Terminal
LNG TERMINAL ARUN
In Operation
CCPP JAWA 1 CCPP JAWA 3
Storage Cap 6x127.000 m3
COD 2020 COD 2020
400 MMSCFD
Regas Cap. Storage Cap 170.000 m3 Storage Cap 2 x 50.000 m3
(3,12 MTPA)
Regas Cap. 200 MMSCFD 157 MMSCFD
(1,56 MTPA) Regas Cap.
(1,23 MTPA)

CCPP SUMBAGUT 1,3,4

COD 2020
Storage Cap 120.000 m3
200 MMSCFD
Regas Cap.
(1,56 MTPA)

FSRU LAMPUNG FSRU NUSANTARA REGAS

In Operation In Operation

Storage Cap 150.000 m3 Storage Cap 125.000 m3

500 MMSCFD LNG TERMINAL BOJONEGARA 500 MMSCFD

Regas Cap. Regas Cap. (3,91 MTPA)
(3,91 MTPA) COD 2020
Storage Cap 2x150.000 m3
500 MMSCFD
Regas Cap. (3,91 MTPA)
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 Small Scale LNG Distribution

Gas
LNG Terminal Fired
& Unloading Power
Plants

Most gas supply to new gas fired power plants

(exclude Jawa Bali) will use small scale LNG
distribution system.
LNG Mini Tanker
Gas Pipeline

LNG Trucking LNG ISO Tank &

LNG Mini Tanker
on LCT Trucking

LNG Hub LNG Storage &

Regas near PLTMG

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 Alternative for LNG Distribution in Eastern Region

643 NM
3
00m
70,0 10,000 m3

198 NM

10,000 m3
FOB 11%REP 425 NM
10,000 m3

323 NM
336 NM
8,000 m3

25,000 m3

14,0
0 0m3

293 NM 11,400 m3

522 NM
2,500 m3

• Total Demand for Maluku Papua reaching 960 MW, ± 105 bbtud.
• LNG Vessel required : 70,000 m3 (Ternate, Ambon, Sorong, Manokwari, Jayapura ) and 14,000 m3 (Ambon, Langgur-Merauke)
• Total 14 days round trip
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 Option for North Maluku
Total Demand 165 MW, 19.8 bbtud
Vessel 4,000 m3, round trip:10 days, buffer 3 days

MPP Tobelo 10 MW (2017)

PLTMG Tobelo 20 MW (2020)
3.6 bbtud ~ 150 m3/d

M
PLTMG Minahasa Peaker 150 MW (2018)

8N
13
~ ~ NM MPP Malifut 5 MW (2017)
179 NM 40.8 0.6 bbtud~25 m3/d
m3
00 ~
4,0 125 NM

MPP Maba 10 MW (2023)

MPP Ternate 30 MW (2017) HUB
PLTMG Ternate 40 MW (2018) ~ 10,000 m3 1.2 bbtud ~ 50 m3/d
PLTMG Tidore 20 MW (2020)* ~
~ MPP Sofifi 10 MW (2017)*
179 NM 12 bbtud ~ 499.2 m3/d
115 NM

PLTG Gorontalo Peaker 100 MW (2016)

221 NM

~
PLTMG Bacan 20 MW (2018)
2.4 bbtud~100 m3/d
~

Short distance of Ternate Tidore ± 16 km, Tidore-Sofifi ± 12 km, more economic to use Submarine Cable
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 Logistic Cost to Each Hub
$/mmbtu

Margin Margin
Margin Margin Margin

FOB Bontang : 11% ICP, assuming ICP @ 35$/bbl

for 12% ICP when ICP @ 47 USD/bbl  5,6 USD/mmbtu vs HSD at 12 USD/mmbtu
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 Gas Infrastructure Projects in PLN
LNG Pesanggaran Clusters in Sumatera
1 5 and Kalimantan
Status : Operation
Status : Pra FS & FEED

LNG Central Indonesia Clusters in Maluku

2 6
Status : RFP Addendum Status : Pra FS & FEED

Gas Pipelines PK-52

Clusters in Papua
Bontang to Tanjung Batu 3 7
Status : Pra FS & FEED
Status : Biddoc Released

LNG Gorontalo Peaker 4 8 LNG Supply for JAWA 1

Status : FID Status : Domestic Allocation

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Confidential and Proprietary. Any use of this material without specific permission of PLN is strictly prohibited.
 Thank you
email : [email protected]

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