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

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

Pertaminas 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.

*) Pertaminas 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 Pertaminas 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

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 Pertaminas 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

Pertaminas 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

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

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