Indonesia LPG

Indonesia LPG
Challenges and Opportunities
Daniel S. Purba
SVP Integrated Supply Chain - PT. Pertamina (Persero)
CONTENT
Introduction
• Indonesia at a Glance
• Pertamina Business Overview
• Downstream Business Practice
LPG Supply & Distribution
• Annual LPG Demand
• LPG Supply Figure & Sources
• Indonesia LPG Supply & Distribution
Future Challenges
• Indonesia LPG Supply-Demand Outlook
• Long Term Corporate Plan
2
INDONESIA AT A GLANCE
Area
Population
Population Growth Rate
1.904.569 km2
±255 million
1.2%
Islands
17,508
Inhabited Islands
±4,000
Capital
Jakarta
Provinces
Per capita Income
Economy Growth Rate
(2015)
34
USD 3,511
4-5%
INDONESIA POPULATION DISTRIBUTION
21.3%
5.8%
7.3%
1.1%
1.5%
57.5%
5.5%
Population in Java and Sumatra dominate with 78.8% from Total Population
Pertamina’s Business Process
Upstream
•
•
•
•
•
PT Pertamina
PT Pertamina
PT Pertamina
PT Pertamina
PT Pertamina
EP
Hulu Energi
Geothermal Energy
EP Cepu
Drilling Services Indonesia
•
•
•
•
•
•
PT Pertamina Internasional Eksplorasi & Produksi
PT Pertamina East Natuna
PT Pertamina EP Cepu ADK
Pertamina EP Libya Ltd.
ConocoPhilips Algeria Ltd.
PT Elnusa Tbk.
*) Pertamina’s share in PT Arun NGL & PT Badak NGL were 55% respectively.
But since Pertamina is not the controlling shareholder of both companies, then they cannot be
Classified as Pertamina’s subsidiary
New & Renewable Energy
•
•
•
•
PT Pertamina Gas
PT Arun NGL *)
PT Badak NGL *)
PT Nusantara Regas (JV)
Downstream
•
•
•
•
PT Pertamina
PT Pertamina
PT Pertamina
PT Pertamina
Trans Kontinental
Retail
Lubricants
Patra Niaga
Non Core
• PT Patra Jasa
• PT Pertamina Dana Ventura
• PT Pertamina Training & Consulting
• PT Pertamina Bina Medika
• PT Pelita Air Service
• PT Tugu Pratama Indonesia
Key Company Highlights 2015
Overview
2015 Key Financial
(USD Billion)
Upstream
94.2
Revenue : 43.73
Net Income : 1.39
EBITDA : 5.26
Employees (Group)
27,429 persons
Affiliation
Subsidiaries : 23 units
JV & Associates : 13 units
101.6
Midstream
Discoveries of Oil and
Condensate Reserves
(MMBO)
Crude Oil Production
(MMBO)
876.8
Discoveries of Natural
Gas Reserves
(BSCFG)
694.3
Natural Gas
Production (BSCF)
Downstream
Gas Sales
46,445.0 (BBTU)
1,624
7,920
Source: Annual Report 2014
305.96
Crude Oil, Gas and
Intermediate Processing
(Million Barrel)
231.03
Fuel Production Volume
(Million Barrel)
Gas Pipeline (KM)
Gas Pipeline Capacity
(MMSCFD)
(Va;uable Products)
6 refineries
(Total capacity : 1,031 mbs/d)
Marketing
61.68
Steam Production
3.056,8 Equivalent to
Electricity (GWh)
Upstream subsidiaries:
• PT Pertamina EP
• PT Pertamina Hulu Energi
• PT Geothermal Energy
• PT Pertamina EP Cepu
• PT Pertamina Drilling Service
Indonesia
• PT Pertamina International EP
• PT Pertamina East Natuna
• PT Pertamina EP Cepu ADK
• Pertamina EP Libya
• ConocoPhillips Algeria Ltd
• PT Elnusa Tbk
Refining
Fuel Sales (Million KL)
(10 Main Fuel Products)
13.98
Sales of Non Fuel
Products
(Million KL)
(Gas, Lubricants, Petrochemical,
and other Non-Fuel)
Fortune Global 500
123
Recognized as one of the
Fortune Global 500 companies,
ranked at 123 in 2014
8 Marketing Operation Region
557 LPG Filling Station
62 Aviation Fuel Depo
21 LPG Terminal
109 Fuel Terminal
5155 Fuel Stration
25 Fuel Gas Station
192 Tanker Vessels
Pertamina Refinery Units
Capacity :
170 MBCD
Capacity :
118 MBCD
Capacity :
348 MBCD
Capacity :
260 MBCD
Capacity :
125 MBCD
Capacity :
10 MBCD
New Tuban Refinery Project with capacity + 100 MBCD
7
DOWNSTREAM BUSINESS PRACTICE
Marketing Highlight:
•
Dominates the downstream infrastructure and
distribution network, comprised of pipelines, fuel
stations, terminals, depots, and vessels
•
Comprehensive coverage through 8 marketing and
trading units, each covering one or more provinces
•
Pertamina is the sole distributor of LPG in Indonesia
Public Services Obligation (PSO) Mandate from
Government:
• One of Pertamina’s key roles is to distribute subsidized
fuel and LPG in Indonesia under the PSO mandate
• Pertamina still maintains over 99% market share in
supplying and distributing subsidized fuel and 100%
market share in subsidized LPG
• Key advantage of already having a fully-integrated and
extensive distribution infrastructure network
Pertamina’s Downstream Distribution Network
Retail fuel station
5,155 units
1,624 km
Gas pipelines
LPG filling plant
557 units
192 units
Tankers
Fuel terminals
Aviation fuel depot
LPG terminal & depot
Lube oil blending plant
109 units
62 units
21 units
3 units
8
LPG ANNUAL CONSUMPTION
6.4 Million MT
6.0 Million MT
5.3 Million MT
4.2 Million MT
2011
5.1 Million MT
2012
2013
2014
2015
Average of annual Increasing Rate 11%
Estimate of demand in 2016 7.4
Million MT
9
LPG SUPPLY FIGURES
Indonesia Supply Figures
10.00
9.00
8.00
in Million MT
7.00
6.00
5.00
4.00
3.00
2.00
1.00
Import
Domestic
2011
2012
2013
2014
2015
2.06
2.20
2.71
2.39
3.30
2.42
3.58
2.49
4.17
2.32
2016
(est)
4.73
2.72
2017
(est)
5.83
2.39
2018
(est)
6.63
2.19
2019
(est)
7.24
2.06
10
DEMAND LPG 2015
13% LPG NON PSO
(PUBLIC SERVICE
OBLIGATION)
(Industrial Consumption, LPG 6 Kg, LPG 12 Kg,
LPG 50 Kg, Vi-Gas)
DEMAND LPG
2015
87% LPG PSO
(PUBLIC SERVICE
OBLIGATION)
(LPG 3 Kg)
Total LPG Consumptions for 2015 reached 6,4 million MTon.
Indonesia LPG Supply Sources in 2015
LPG Import Sources in 2015
Middle East (92.7%)
Africa (4.3%)
Southeast & East Asia (1%)
Australia (2.1%)
LPG SUPPLY & DISTRIBUTION
Supply Scheme to Main Terminal
Main Terminal:
• Tj. Uban (Inland Terminal)
capacity 38,000 MT C3 & 50,800 MT C4
• Teluk Semangka (STS)
3 VLGC as floating storage
• Kalbut (STS)
3 VLGC as floating storage
SABANG
KRUENG RAYA
Import
LHOK SEUMAWE
Belanak
P. NATUNA
MEULABOH
LAB. DELI
TARAKAN
Dumai
SIBOLGA
Bontang
TOLI - TOLI
P. BATAM
G. SITOLI
SIAK
Tj.P. SAMBU
Uban
GORONTALO
BONTANG
SINTANG
SAMARINDA
PONTIANAK
MOUTONG
DONGGALA
SUBUNG
BALIKPAPAN
JAMBI
Balikpapan
Jabung
SAMPIT
BENGKULU
PKL.BUN
Plaju
CILIK RIWUT
PARIGI
PARE - PARE
BANJARMASIN
MANOKWARI
LUWUK
KOLONDALE
PALOPO
P. PISANG
BIAK
POSO
SERUI
BANGGAI
KENDARI
BULA
MASOHI
NAMLEA
FAK - FAK
Sorong
JAYAPURA
NABIRE
KOLEKA
RAHA
KOTA
PANJANG
BAU -BAU
BARU
Balongan
PLUMPANG
Import
UJ.
Gresik
SEMARANG
Teluk
Semangka
TUAL
CAMPLONG
Kalbut
SURABAYA
MENENG
Cilacap
DOBO
PANDANG
AMPENAN
BADUN
G
BIMA
MERAUKE
MAUMERE
KALABAHI
REO
END
E
WAINGAPU
SAUMLAKI
L. TUKA
DILI
ATAPUPU
KUPANG
Production Sharing Contractors (PSC)
Pertamina Own Fleet
Pertamina Refineries
Domestic Private
Refineries
Pertamina Gas 1
Pertamina Gas 2
( 84000 m3 )
( 84000 m3 )
LPG SUPPLY & DISTRIBUTION
Distribution Scheme from Main Terminal
SABANG
KRUENG RAYA
LHOK SEUMAWE
Pkl. Susu
P. NATUNA
MEULABOH
TARAKAN
LAB. DELI
SIBOLGA
P. BATAM
G. SITOLI
SIAK
TOLI - TOLI
Tj.P. SAMBU
Uban
GORONTALO
BONTANG
SINTANG
SAMARINDA
PONTIANAK
MOUTONG
DONGGALA
SUBUNG
BALIKPAPAN
SAMPIT
BENGKULU
PKL.BUN
BIAK
POSO
JAMBI
PARIGI
CILIK RIWUT
LUWUK
KOLONDALE
PALOPO
P. PISANG
PARE - PARE
BANJARMASIN
MANOKWARI
BANGGAI
KENDARI
SERUI
JAYAPURA
BULA
MASOHI
NAMLEA
FAK - FAK
NABIRE
KOLEKA
RAHA
KOTA
PANJANG
BAU -BAU
BARU
UJ.
PLUMPANG
SEMARANG
Teluk
Semangka
DOBO
PANDANG
CAMPLONG
SURABAYA
TUAL
Kalbut
MENENG
AMPENAN
BADUN
G
BIMA
MERAUKE
MAUMERE
KALABAHI
REO
END
E
WAINGAPU
SAUMLAKI
L. TUKA
DILI
ATAPUPU
KUPANG
PSC
Pertamina Refinery
Private Refinery
Depot LPG
SUPPLY POINT LPG IMPORT 2015
Future Challenges and Opportunities
1. Decreasing of LPG in Domestic Supply shall be balanced from import.
2. LPG demand growth is expected ± 5-7% until 2019
in Million MT
LPG Supply - Demand Outlook
10.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
-
Demand
Domestic Supply
2017
2018
2019
2. Inland receiving terminal and storage facilities need to be built to replace
existing floating facilities
3. Government regulation on LPG specification is slightly different from LPG
guaranteed specification from producers
LONG TERM CORPORATE PLAN
1. Upgrade Terminal Tg Sekong Storage Capacity
2. Build LPG Terminal Storage in East Java &
West Java
3. Utilize LPG Storage Tanks in Terminal
Bontang and Arun
17