LNG Sebagai Energi Masa Depan

Peranan LNG sebagai Energi Masa Depan

Malang, 24 November 2015

Dr. Ir. Salis S. Aprilian, MSc. President Director & CEO [email protected] Agenda

Badak LNG Company Profile

Energy in the Future

Liquefied Natural Gas (LNG)

LNG Project Development in Indonesia

2  Company Overview  Company Milestone  Company Achievement  Expertise Company Overview

Shareholders

Main Business of Badak LNG is to liquefy gas produced from Gas Producer’s field with the best performance standard and earns optimum return for the stakeholders

Total Occupied Area : 2,010 Ha 8 LNG Liquefaction Trains 22.5 MTPA 6 LNG Storage Tanks 636,000 m3 5 LPG Storage Tanks 200,000 m3 3 LNG Loading Docks 2 LPG Loading Facilities

4 Company Milestone

Peak LNG Production The Declining Era / Period of Transition

2nd Life Cycle First LPG Shipment

Badak LNG was founded

Train A/B start Up First LNG Shipment 8 Trains in Future Challenges Operation and Opportunities Train A-H

1973 1977 1988 1999 2001 2007 2015

“Badak LNG has reached its peak production period and now facing the transition period as well as the declining of feed gas from Mahakam Block “

5 Company Achievement

Proven attaining more than 76 million of Safe Working Hours without Lost Time Injuries (LTIs) since 2006 LNG Benchmarking

The Latest LNG benchmarking result, among 14 LNG Plants in the world which SAFETY HEALTH & RELIABILITY LOSSES MAINTENANCE PERSONNEL ENVIRONMENT COST represents >80% world LNG Production Highest Score Maximum Lowest in Lowest Lowest in Health & Sustainable Plant Losses maintenance Personnel Safety Index Capacity cost cost (99.3%) 1st 1st 1st 1st 1st International Sustainability Rating System (ISRS) . Badak LNG is the 1st and the only one Oil & Gas company in the world achieving ISRS 8 Level 8 certification (since 2010)

. The highest among 67 companies in Oil & Gas and Chemical Plant in 17 Countries (Australia, China, France, German, India, Indonesia, Italy, Japan, Malaysia, Netherland, Norway, Qatar, Russia, Singapore, South Korea, UK and USA)

6 Badak LNG Expertise

 Having extensive experience for almost 40 years in LNG business, Badak LNG is now extending its business in expertise sharing activities to develop and produce qualified and competent workers for other LNG companies in the world

 This expertise sharing activities include Technical Service, O&M Services, and Training.

7 Badak LNG Clients Badak LNG Learning Center Some of Our Clients in the Last Two Years (2014-2015)

Operation Training Hands-On Maintenance Training Plant Operation Training Dominion Cove LNG, USA Angola LNG eni East Africa, Mozambique Sept – Nov ‘14 Sept ‘14 – Sept ‘15 Nov ‘13 – Oct ‘14

Plant Operation Training LNG Plant Start-Up Training LNG Plant Start-Up Training TIMOR GAP, INPEX Corp. Japan JGC Corp. Japan Timor Leste July – Nov ‘15 Aug ‘14 Oct ‘14

Energy in the Future

In 2020 onwards, oil and coal will shifted with the increasing supply of natural gas and other renewable energies Energy in the Future

Paving the way towards a 100% decarbonized gas in the electricity grid

In the future, gas is targeted to be used 100% in power generation as it would be an optimization of renewable gas instead of conventional gas

Source : Moulin Fournier Tanguy, Engie Energy Consumption by Sector

Energy Consumption by Sector 2012

Indonesia United States Source : Indonesia Energy Outlook 2013

Other Sectors

13 Energy Mix Policy in The World

 There has been some rapid shift in fuel shares in power generation in the past; oil gaining in 1960s and losing in 1970s; nuclear picking up in the 1970s/1980s and falling in the 200s; gas raising through the 1990s and 2000s.

14 Where We Are Now?

Natural Gas

http://image.slidesharecdn.com/n-gasdehydrationboosterstationutilitiesdubai-130315160039-phpapp01/95/natural-gas-dehydration-11-638.jpg What is LNG?

Natural gas is a major source of energy, but many towns and cities that need the energy are located far from the gas fields. Transporting gas by pipeline can be costly and impractical. LNG is created by cooling the gas to a liquid to -160ºC then can be shipped out, safely and efficiently.

LNG is a clear, colourless, non-toxic liquid that can be transported and stored more easily than natural gas because it occupies up to 600 times less space.

When LNG reaches its destination, it is returned to a gas at re-gasification facilities. It is then piped to houses, business and industries.

18 What is LNG?

INTRODUCTION TO LNG VIDEO Click Here

19 Why LNG?

Inexpensive Environment Friendly The beauty of LNG’s On average, LNG costs simplicity is that it burns about 50% less than almost completely, leaving gasoline or diesel fuel, only a small amount of while delivering the same carbon dioxide and water power and performance behind

Safe Abundant The United States is sitting LNG is lighter than air. In on top of more than 25 very the event of a spill, LNG large natural gas reservoirs. disperses quickly without Some analysts say that it pooling on the ground contains three times the creating a fire hazard like energy as the Saudi oil petroleum based fuels fields

20 LNG Process

21 Simplified Badak LNG Process Flow Diagram

CO2 REMOVAL DEHYDRATION FRACTIONATION LIQUEFACTION STORAGE TANK (ABSORBER & STRIPPER) (H2O & Hg REMOVAL) (SCRUB COLUMN) (MCHE)

FEED GAS

BOIL OFF TO PLANT FUEL CO2 KOD 4E-10 4E-12 LNG STORAGE 4E-14 LNG LNG

MARINE LOADING C3 CW C4 LPG CW CW STORAGE HP Steam DEETHANIZER DEPROPANIZER LPG DEBUTANIZER

MARINE LOADING C3 REFRIGERATION C5+ COMPRESSOR MCR REFRIGERATION COMPRESSORS FRACTIONATION

22 LNG in Indonesia

PERTA ARUN REGAS Regas Capacity 400 MMscfd

Capacity : 22.5 MTPA First Shipment : 1977

ARUN NGL FSRU Capacity : 3 MTPA Capacity : 2 MTPA Capacity : 7.6 MTPA Capacity : 12.5 MTPA First Shipment : Aug 2015 First Shipment : 2009 Last Shipment : Oct 2014

Abadi FLNG Capacity : 7.5 MTPA Project Development LNG in The World LNG in The World LNG in 2014

Source : http://woodmackenzie.com/infographics “Until 2014, Indonesia is all time leading LNG exporter in the world and Japan is all time leading LNG importer in the world ” LNG in The World Global Position of LNG Producers in the World in 2015-2020

Source : WoodMackenzie, ANZ

“in the next 5 years, LNG producers will be shifted by the rapid growth of Australia and the USA” LNG in The World

Source : http://woodmackenzie.com/infographics LNG Plant Projection  LNG Infrastructure for Domestic Needs  LNG Utilization for Mining Industries  LNG Utilization for Transportation  LNG Utilization for Commercial Sectors  Other LNG Development Plan LNG Growing Role in Energy Sectors LNG Applications in The World

Japan – LNG ISO tanks Railway USA & China – medium/heavy trucks

Norway – Passenger Norway – LNG green box – house ferries holding and smaller end users for central heating, hot water, cooking

Australia – Long Haul Mining

31 Key Factor of this Evolution

 The growth and availability of Small-Scale LNG (SSLNG) The number of SSLNG plants recently built or planned in China is significant and expected to reach 20 mtpa by 2020. The SSLNG production industry is very dynamic in North America, driven by increased gas availability from shale gas production and the price differential between natural gas and oil products .  Global interest to reduce emissions LNG as fuel is a viable mitigant, significantly reducing emissions of

carbon dioxide (CO2) by up to 20%, sulfur oxide (SOx) up to 100%, nitrogen oxide (NOx) up to 90%, and particulate matter (PM) up to 99%.  Significant Price Difference Key Factor of this Evolution (cont’d)

 Significant Price Difference

> 5 US$/MMBTU LNG Infrastructure for Domestic Needs The majority of LNG in Indonesia is being exported due to lack of infrastructure in domestic sector. But in 2014, Badak LNG along with PT Pertamina Gas has initiated the first LNG Filling Station in Indonesia that can accomodate LNG filling and distribution in small scale using 20 m3 of ISO Tank. LNG for Transporation Application Engine Power Fuel Choice

Large Marine > 5,000 HP

Off Highway 1,000 ~ 5,000 HP • Rails / Marines • Mine trucks LNG Heavy Duty 400 ~ 600 HP • On – highway trucks • Mine trucks Medium Duty 200 ~ 350 HP • Buses • Medium Truck

Light Duty < 200 HP • Light Duty Truck CNG • Passenger Car

“LNG is more suitable for medium and heavy duty vehicle while CNG is more suitable for light duty vehicle” LNG for Mining & Transportation Utilization

In East Kalimantan, LNG has been utilized for transportation/vehicle purposes. This project was initiated by Badak LNG, PT Pertamina Gas and PT Pertamina (Persero) in 2013. Until now, LNG has been utilized in various transportation sectors :

PT Indominco Mandiri The 1st LNG Bus in Indonesia

Berau Coal Mining Terminal BBM Balikpapan LNG for Commercial Sectors

 Starting August 2015, Balcony Mall Balikpapan has been enrgized by LNG. LNG is used for generating electricity for mall, hotel, and apartments nearby.

 In December 2015, Balikpapan Super Block (BSB) will also targeted to be energized by LNG.

Diesel Dual Fuel (DDF) Genset

Air vaporizer unit LNG ISO Tank In future development, LNG will also be utilized for refrigeration purposes, cooking purposes (stoves) besides for power generation purpose Other Development Plan of LNG in Indonesia  Mini-LNG Plant in Several Potential Regions http://www.businesstimes.com.sg/energy-commodities/small-scale-lng-taking-off-in-indonesia  FSRU (Floating Storage and Regasification Unit) Project in Java Island http://industri.bisnis.com/read/20150730/44/457905/pertamina-bakal-bangun-5-terminal-lng-  LNG Terminal in Banten (Pertamina-Tokyo Gas) http://economy.okezone.com/read/2015/02/26/19/1110861/pertamina-gandeng-tokyo-gas-kembangkan-lng  Replacing High Speed Diesel Train to LNG (Pertamina – PT KAI) http://bisniskeuangan.kompas.com/read/2015/08/28/184759626/Sinergi.BUMN.Pertamina.dan.KAI.Sepakat.Konversi.Bahan. Bakar.Kereta.Api  Bio LNG (LNG from Bio-waste) http://www.kbenews.co.id/bekasi-raya/51-bekasi-raya/800-pabrik-bio-lng-segera-dibangun

 Arun LNG Filling Station for Trucking http://pertagasniaga.pertamina.com/lng Thank you

“We can create a more sustainable, cleaner and safer world by making wiser energy choices”. -Robert Alan Silverstein- American Writer, Artist, Social Activist