CNG DEVELOPMENT IN INDONESIA: CHALLENGES & OPPORTUNITIES

Robbi R. Sukardi, MBA

Chairman For the Association of CNG Indonesia Companies
 CONTENTS
CNG DEVELOPMENTS, CHALLENGES, & OPPORTUNITIES:
CNG for Natural Gas Vehicle (NGV)
CNG as a Virtual Pipeline Purpose
CNG for Power Supply Storage
CNG to Ship Natural Gas

1980s 2005 2012 2014 - Forward

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 CNG FOR NGV CHALLENGES
New source (onshore vs. Off shore) Well head gas characteristics Indonesia as an archipelago and mountainous terrain condition
Economics of scale size of the well Pricing Economic of scale of the volume gas & location
Price & term conditions
In 2012, 30,5 mmscfd gas supply has been
committed for the Transportation sector. Gas Characteristics (pressure & quality)
Compression ability (fast vs. slow fill)
Location of the station
Availability of un-committed (un-
Power supply availability
contracted) gas source
Gas contract terms & pricing
Prioritizing allocation of gas (i.e. for
On-line or Daughter system
oil lifting, fertilizer, electricity, and
strategic industrial)
Price deviation between CNG
and petrol fuel as a major factor
Energy Mix policy & strategy
Sale price currency
CNG mandatory vs alternative fuel
Government Policy Pricing Policy Units sale methods
Environmental reason
/ Political Will Escalation price policy
Subsidy or No-Subsidy
Taxes policy

A Emergency Response Team body

Regulation that will induce and
should be establish
provide benefit to the supply
Gas quality must be continuous
and demand side
monitor and report to the
One regulatory body that
government
specific manage, control, and
monitor the NGV development
C-kits must be wide spread available Gas contract should be simple
C-kit seller and bank/leasing as well
insurance company must coordinate
People are used to using petrol
together
People thinks that CNG is not safe
Tax incentives
CNG Station must be widely available due to
limited gas tank size that can be carried
Car manufacturers warrantee People are worried that CNG will damage the
Vehicle manufacturers must be able to sell NGV at lower or at vehicle engine
least at the same price with petrol run vehicles Massive and continuous NGV campaign is costly

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 CNG FOR NGV OPPORTUNITIES
+ 13 million automobile vehicles with 10% annual growth sale
+ 83 million kilo liters annual fuel consumption
+ 60 % of the annual consumption consumed subsidized fuel
 CNG AS A
VIRTUAL PIPELINE PURPOSE
 THE VIRTUAL PIPELINE
UPSTREAM

LNG
MIDSTREAM
DOWNSTREAM

Shopping Mall Electric Generators

Apartments
 THE VIRTUAL PIPELINE
INTRODUCTION GROWING MATURE DIMINSIHING

LPG
COAL
PIPE
OIL
GAS
DOMESTIC SALES

CNG

FUEL UNIT + KCAL/UNIT

KEROSENE Liter 8,840

DIESEL FUEL Liter 9,063
PETROL (PREMIUM) Liter 9,270
LNG COAL ton 6,000
LPG Kg 11,200
LNG m3 10,000
NATURAL GAS (NG) m3 9,000
CNG m3 8,800
CNG FOR NGV & AS THE VIRTUAL PIPELINE
 THE VIRTUAL PIPELINE INDUSTRY

CNG STATION
AREA OF
OPERATION

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 CNG FOR
POWER SUPPLY GAS STORAGE
 CNG FOR POWER SUPPLY GAS STORAGE

Electricity Usage Feed gas CNG feed Storage Volume

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CNG FOR SHIPPING
NATURAL GAS
 CNG FOR SHIPPING NATURAL GAS
Due to archipelago country and scattered marginal small demand within 2 to 5 MMSCFD, CNG is the
most suited and efficient way to apply milk run of gas distribution in which trucking, and barge-
containerized CNG can be option to transport the gas.

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 CNG FOR SHIPPING NATURAL GAS
CNG Marine by Type of
Vesel
Larger Volume and Small Volume and
Long distance** Short Distance

Barge Mounted (T&B)

(will using Tug Boat for
Coselle
sailing)
(Coil in Carausel)
Self Propeler Barge
(SPB)
Votrans
(Volume Optimized
Transportation & Landing Craft
Storage Transport (LCT)

** not available in the world, ship owner will build based on request and long term time charter

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 CNG FOR SHIPPING NATURAL GAS
Using Coselle or Votrans type in this time being will be facing problem due to the un available CNG
Receiving terminal for discharge the cargo besides very costly in investment.
Cabotage Law (Should be Indonesia Flag for Domestic Shipping based on Indonesia Law)
Tug & Barge , not recommended for this time being, because of Notation Class of Tug & Barge , for
Dry Bulk not for shipment CNG ISO Tank .
Tug & Barge, not allow for shipment CNG ISO tank because there is no Safety Protocol yet for
shipment Dangerous Goods with Tug & Barge.
Self Propeler Barge (SPB), will be costly, because time charter rate in the market higher than T&B
also LCT.

Current Solution:

Using LCT is the best solution to shipment CNG ISO Tank, but the tank should be on trailler as
mandatory regulation in maritime for LCT.
No need state of the art or receiving terminal or special port, LCT can berthing as long as the
port allow for open the LCT ramp door and manuveuring truck for load & un load the cargo
Available in Indonesia and most of O&G offshore activity utilize this type of vesel, therefore fast
track to mobilize.

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 CNG FOR SHIPPING NATURAL GAS
Small Size:
Can be shipment maximum 7 unit of CNG ISO Tank (Tube Skid) with 40ft size include the traller

Large Size:
Can be shipment maximum 22 unit of CNG ISO Tank (Tube Skid) with 40ft size include the trailler

Sample of Stowage Plan for 7 CNG Containers

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 CNG FOR SHIPPING NATURAL GAS
LCT time charter rate in the Indonesia market will not linier, the rate will hyperbolic
Therefore , the suggestion of minimum volume of CNG should be in 2000 mmBtu per shipment to
get the suitable cost per mmBtu for shipping (USD 3.5 USD 4.5 per mmBtu, depend on the
nautical miles distances)

Fix-Var Shipment Cost Chart

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 Assosiasi Perusahaan CNG Indonesia
THANK YOU (APCNGI)

website: www.apcngi.org

THANK YOU
 APCNGI 2014 MEMBERS

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