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DSLNG Project Update

Andy Karamoy

PT Donggi Senoro LNG

4th LNG Supply, Transport and Storage Indonesia 19-21 May 2014 Bali, Indonesia

Table of Contents 1. Introduction of Donggi Senoro LNG Project

2. Keys to successful project execution

3. DSLNG’s effort for project integration

2 Strictly Confidential

Project Location Central Sulawesi

1. Introduction of Donggi Senoro LNG Project

Arun NGL

Badak NGL

Tangguh LNG

4th LNG Project in Indonesia

DSLNG

1862 km from Jakarta to Luwuk

( 3 hours flight B-737)


Aerial Photo at LNG Plant Site Current

Material Offloading Facility LNG Jetty Air Fin Coolers Firewater Tank Main Control Room

Gas Turbine Generators Main Substation MCHE

Flare LNG Tank Refrigerant Storage


EPC Construction Progress

Admin Building

EPC Construction Progress

Camp Area

Business Structure Indonesia’s first down stream LNG Business model to produce LNG

MGDP/ Matindok

DES

Upstream

JOB PMTS/ Senoro

DSLNG LNG Buyers

FOB

KOGAS

Kyushu Electric

Chubu Electric

Gas Sales Agreement

LNG SPA

LNG SPA

LNG SPA

TCA

85 mmscfd

250 mmscfd

1 mtpa

0.3 mtpa

0.7 mtpa

2 mtpa

Gas Sales Agreement



1. A good example of “Development of Stranded Natural Resources”

• Best-mix development provides an opportunity for development of natural resources which left undeveloped for more than decades.

2. “Front Runner” project in Eastern Indonesia (Sulawesi EC)

• One of the biggest projects in Sulawesi Economic corridor of which development is one of the objectives under “ACCELERATION AND EXPANSION OF INDONESIAN ECONOMIC DEVELOPMENT 2011-2015 MASTERPLAN”.

3. First downstream LNG project in Indonesia

• All investment and operating risk will be borne by PT DSLNG

• No cost recovery burden of considerable LNG Plant Development to GOI

4. Collaboration amongst Indonesia, Korea, Japan

• The first LNG project which stakeholders from upstream, midstream (LNG Plant Operator) up to LNG buyers are all Asian companies.

Highlights of Donggi Senoro LNG



Key Challenges of Donggi Senoro LNG

2. Key to successful project execution

Schedule Management and Cost Control

Coordination between upstream parties and DSLNG

Corporate Vision, Mission and Values

DSLNG is a joint venture with cross-culture and various backgrounds First Business Model (Downstream LNG Project) in Indonesia

Code of Conduct QHSE policy

Stakeholders Management

Strong Organization

Operation readiness Enterprise Risk Management


Land Acquisition experience



1. Legal Basis

– Law Number 5 of 1960 concerning the Basis Agrarian Law

– Law Number 2 of 2012 concerning Land Procurement for Development of Public Interests; etc

2. The Principle of Indonesian Land Law

Indonesian land law recognize horizontal separation Principle

(separated ownership of the land and buildings/plants)

3. Type of Rights of Land: Land with individual rights and Tanah Negara (Indonesia still recognize Adat Land and Ulayat Right)

Land with individual rights, consists of:

– Hak Milik (Right of Ownership),

– Hak Guna Usaha (Rights of Cultivation),

– Hak Guna Bangunan (Rights of Use of Building),

– Hak Pakai (Right to Use)

Procedure to Obtain Land

PT X Obtaining

Location Permit Land Acquisition, by:

Free State Land BPN

Transferring (the Land title

is same)

Releasing (the Land

title is different)

HGB in the name of PT X

Registration to Change the ownership name

Application for the HGB

Issued by Local

Government after

recommended by BPN

Land Deed Offiicer (PPAT)

-Kepala Desa

-Camat/Lurah

-Notaris


FINANCIAL SPLIT GOVERNMENT REVENUEA AFTER COST RECOVERY AND TAX

CRUDE (NET GOVERNMENT SHARE)

100%

85% Government

15% Contractor

100%

85% Central

15% Local

3% Province

12% Regent/ City

6% Producing Regent

6% Other Regents in the Province

100%

70% Government

30% Contractor

100%

70% Central

30% Local

6% Province

24% Regent/City

12% Producing Regent

12% Other Regents in the Province

GAS ( NET GOVERNMENT SHARE)

- Province tax

- Local Retribution

Less:


Intensify the socialization of future local benefits

Schedule Management and Cost Control

Overall EPC progress

Good management of schedule and cost by progress measurement agreed by DSLNG and EPC contractor

3. DSLNG’s effort for the project integration - ”spent and schedule”

Weight Planned Actual

Engineering 11.05% 100% 100%

Procurement 44.93 98.56% 100%

Construction 44.02% 95.11% 96.50%

Overall Progress 100% 97.20% 98.46%

Physical Construction Progress

Last Month (Cummulative)

This Month This Month

(Cummulative)

Plan 90.5% 2.6% 93.1%

Actual 93.6% 1.5% 95.1%

Overall EPC progress

As of 25 April 2014


Sulawesi LNG Development

59.9%

Pertamina Hulu Energi

29.0%

Medco LNG

11.1%

Donggi Senoro LNG

SENORO

MATINDOK

PHE Tomori

50%

Medco Tomori

30%i

Tomori EP UK

20%

Pertamina EP 100%

PERTAMINA MITSUBISHI MEDCO KOGAS

3. DSLNG’s effort for the project integration

Coordination between upstream parties and DSLNG Steering Committee is established amongst Ultimate Shareholders to monitor overall progress

Upstream Downstream Coordination Forum Coordination & Collaboration for interface matters by management level

Upstream Downstream Working Groups Technical Working Group/Commercial Working Group

CSR Working Group/QHSE Working Group

Tomori EP UK: MITSUBISHI 51%/ KOGAS 49%, Sulawesi LNG Development: MITSUBISHI 75%/KOGAS 25%


Preparation for start-up and Operation Readiness

3. DSLNG’s effort for the project integration

Preparation for hand-over from EPC contractor and readiness for DSLNG’s independent operation

O&M Phase

First LNG Feed Gas

Operation Readiness

Mechanical completion

2011～2013 2014 2015

EPC Phase Start-Up

• Operation Organization • Process Safety Management • Production and Marine • Maintenance and Inspection • Technical Services • Operations Support • Gas & LNG Delivery Procedure • QHSE • ICT • Security • Assurance • Business Continuity

Commercial Operation Commissioning


Thank you

Key Challenges of Donggi Senoro LNG


MISSION

DSLNG is a joint venture with cross-culture, various backgrounds

To be a safe and reliable provider of LNG

• Build and operate a reliable LNG project • Ensure all stakeholders benefit from the LNG value chain • Be a socially and environmentally responsible LNG company

VISION

Strictly Confidential

LNG Plant Specifications

• Feed Gas Supply 335 million standard cubic feet per day

• LNG Sales 2 million tonnes per year

• Process Technology APCI – propane pre-cooled mixed refrigerant

• LNG Tank Capacity 170,000 cubic meters x 1 tank

• Refrigeration Compressor Driver

Gas Turbine (Frame 5)

• Generating Capacity 3 x 22.6 Mega Watts

• Cooling Media Air

• Loading Arms 2 LNG Loading, 1 Vapor Return

• LNG Loading Pumps 2 x 2,000 cubic meters per hour

• Jetties LNG Loading (Max. 155,000 m3) and MOF


LNG Specifications

• Gross Heating Value 1,060 – 1,170 BTUs /scf

• Methane 85 mol % minimum

• Butane 2 mol % maximum

• Pentane 0.1 mol % maximum

• Nitrogen 1 mol % maximum

• Hydrogen Sulphide 0.25 grain /100scf

• Total Sulphur 1.3 grain/100scf


Additional Informations

• Feed Gas

371,374 MMBTUD

335 MMSCFD

1,108.579 BTU/SCF

• LNG

319,634 MMBTUD

1,100.48 BTU/SCF

4,144 tons/day

• Condensate 2,313 bbl/day

• Own Utilities 40,850 MMTUD

41.9 MMSCFD

• Flare 176 MMBTUD

0.15 MMSCFD

• Plant Thermal Efficiency 88.95%

• Cargo Per Voyage

Hyundai Utopia

56,865 tons

126,086 m3

2,949,588 MMBTU

Northwest Swallow

56,660 tons

125,632 m3

2,938,954 MMBTU


dslng project update - lng world | homelng-world.com/lng_bali2014/slides/lng bali - day 1...

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