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 1980 s 2005 2012 2014 - Forward
CNG FOR NGV CHALLENGES New source (onshore vs. Off shore) Economics of scale size of the well In 2012, 30,5 mmscfd gas supply has been committed for the Transportation sector. Availability of un-committed (uncontracted) gas source Prioritizing allocation of gas (i.e. for oil lifting, fertilizer, electricity, and strategic industrial) Energy Mix policy & strategy CNG mandatory vs alternative fuel Environmental reason Subsidy or No-Subsidy Well head gas characteristics Pricing Government Policy / Political Will Indonesia as an archipelago and mountainous terrain condition Economic of scale of the volume gas & location Price & term conditions Pricing Policy Gas Characteristics (pressure & quality) Compression ability (fast vs. slow fill) Location of the station Power supply availability Gas contract terms & pricing On-line or Daughter system Price deviation between CNG and petrol fuel as a major factor Sale price currency Units sale methods Escalation price policy Taxes policy A Emergency Response Team body should be establish Gas quality must be continuous monitor and report to the government C-kits must be wide spread available C-kit seller and bank/leasing as well insurance company must coordinate together Tax incentives Car manufacturers warrantee Vehicle manufacturers must be able to sell NGV at lower or at least at the same price with petrol run vehicles Regulation that will induce and provide benefit to the supply and demand side One regulatory body that specific manage, control, and monitor the NGV development Gas contract should be simple People are used to using petrol People thinks that CNG is not safe CNG Station must be widely available due to limited gas tank size that can be carried People are worried that CNG will damage the vehicle engine Massive and continuous NGV campaign is costly
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
DOWNSTREAM MIDSTREAM UPSTREAM THE VIRTUAL PIPELINE LNG Shopping Mall Electric Generators Apartments
DOMESTIC SALES THE VIRTUAL PIPELINE INTRODUCTION GROWING MATURE DIMINSIHING PIPE GAS COAL LPG OIL CNG FUEL UNIT + KCAL/UNIT LNG KEROSENE Liter 8,840 DIESEL FUEL Liter 9,063 PETROL (PREMIUM) Liter 9,270 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
CNG FOR POWER SUPPLY GAS STORAGE
CNG FOR POWER SUPPLY GAS STORAGE Electricity Usage Feed gas CNG feed Storage Volume
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 bargecontainerized CNG can be option to transport the gas.
CNG FOR SHIPPING NATURAL GAS Larger Volume and Long distance** CNG Marine by Type of Vesel Small Volume and Short Distance Coselle (Coil in Carausel) Votrans (Volume Optimized Transportation & Storage Barge Mounted (T&B) (will using Tug Boat for sailing) Self Propeler Barge (SPB) Landing Craft Transport (LCT) ** not available in the world, ship owner will build based on request and long term time charter
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.
Small Size: CNG FOR SHIPPING NATURAL GAS 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 Container s
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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