1. Gas Development Master Plan
Gas Infrastructure Development
Presented by:
John Bowers
Petroleum Development Consultants, UK
Shangri-La Hotel, Jakarta
21 June 2012

2. Contents
• Key objectives
• Key technical issues
• Transportation Systems
 Transmission pipelines
 Distribution systems
 LNG
 CNG Ships
• Gas Utilisation
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3. Key objectives
• Gas Development Master Plan will focus on:
– Gas demand-supply projections
– Optimum gas field development to meet growing demand
– Substitution of export gas with domestic supply
– Optimizing flow patterns from existing fields to demand centres
– Optimizing the expansion of gas supply and transmission infrastructure
– Recommending policy, legal, regulatory and institutional framework
To produce:
A proposed investment timeline through 2025 along with potential
projects that need to be financed - including identification of the least
cost and most optimal gas-based solutions for Indonesia
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4. Transmission & Distribution Plan
• There is an existing plan for gas transmission &
distribution development which we will analyse.
• The supply & demand basis for that plan is not
completely clear on initial review.
• There is also another study prepared on behalf of ADB
which we will take into account.
• Our GDMP will also determine the interconnectivity
requirements essential for load management and
security of supply.
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5. Key technical issues
• Supply
• Location and volume of gas available for local/ domestic market;
• Spare LNG capacity after export commitments;
• Demand
• Location of major consumers;
• Appropriate markets/ utilisation;
• Load duration & load factor
• Transportation systems
• Appropriate to circumstances;
• Load factors and load management;
• Security of supply;
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6. Key technical issue - 1
Gas supply locations Principal ‘domestic’
demand
Pipelines exist
700 km
1800 km
• Distances are the key issue for transportation?
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7. Gas Transportation Systems
• Comparative relationship between transport systems
• Pipelines
 Short/ medium distance
 High capacity
Pipelines LNG
• LNG
 Long distances
Gas Volume
 High capacity
• CNG CNG
 Medium/ long distance Stranded
 Small capacity
Distance to Market
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8. Key technical issue - 2
100%
• Load Profile
80%
• Daily (diurnal), see example
POWER DEMAND
•
60%
Annual (seasonal swing)
• For Indonesia, daily profile most 40%
important 20%
• Load duration curve 0%
0 3 6 9 12 15 18 21 24
HOUR OF DAY
• Relationship between generating 100%
capacity requirements and
capacity utilization. 80%
• Flat line means high utilisation. 60%
• Also applies to gas pipeline 40%
BASE LOAD
20%
• Load factor (%)
0%
• = Average load/ Peak load
• High LF vital for efficient power generation
• Low LF requires larger diameter pipelines for higher flow rates plus storage
capacity to meet peak flows
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9. Pipeline Transmission systems
• Reasonable capital cost depending on:
• Distances between supply points and demand centres
• ease of construction – topography/ terrain
• Operating pressure
• Low operating costs:
• Low maintenance, high reliability
• Long life
• Inherent linepack storage for load management
• Interconnection gives high security of supply
• Less flexible if location of demand changes
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10. Distribution systems
• High capital cost & low capacity depending on:
• Pipe length & diameter
• Restricted operating pressures - safety
• Urban conditions, ease of construction, traffic,
• No inherent storage – designed to meet peak load
• Low operating costs:
• Low maintenance, good reliability
• Long life
• Long term investment
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11. LNG Systems
• High capital cost
• Need spare liquefaction capacity to be viable
• Onshore re-gas terminal or FSRU
• Ships
• High operating costs
• Shipping costs
• Cryogenic materials, expensive to replace
• High maintenance but generally reliable
• Medium life
• Inherent storage for load management
• Flexible location (FSRUs)
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12. CNG Shipping
• Reasonable capital cost depending on;
• Compression requirements
• Capacity
• Reasonable operating costs, but
• Reliability?
• Maintenance?
• Medium life?
• Low capacity,
• Inherent storage but delivery scheduling critical without fixed storage
• Relatively unproven concept
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13. Gas Utilisation
Power generation, base load or peak shaving
Fertilisers, feedstock, cement;
Energy intensive industrial developments
• Households & commercial premises
? Only for cooking, water heating
? High investment, low revenue
• Vehicle fuel (CNG) dependent on:
? Availability of filling stations
? Cost of conversion
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