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6 th ASIA/CHINA PETROCHEMICAL FEEDSTOCK MARKETS CONFERENCE Shenzhen, China, 14 -15 MAY 2007
OUTLINE :
I. INTRODUCTION
1. Oil and Gas Law No. 22/2001 and Government Regulation
No. 36/2004 and its impact on Upstream and Down stream Oil & Gas Business 2. Indonesia Oil and Gas Reserves, 2005
1. Petrochemical Industry Chain. 2. Strength and Weakness of Indonesia Petrochemicals Industry 3. Main Olefins & Aromatics Producers In Indonesia (Chandra Asri,
PERTAMINA and TPPI) 4. Domestic Petrochemicals Feedstocks Balance (Gas, Naphtha and Condensate) 5. Oil Price Prediction 6. Limitation of Gas, Naphtha and Condensate Supplied for Domestic Petchem Feedstocks Demand
PT PERTAMINA (PERSERO)
Industries (Natural Gas, Condensate and Naphtha), 2. Feedstock Price Policy (Gas Price)
1.
2. 3. 4.
Utilizing Offgas ex RCC for Propylene production Utilizing Natural Gas for producing Petrochemicals/Oil products or LNG Utilizing Sr. Kerosene for N-Paraffin production Optimizing Gas Production from new field for Fertilizer Plants Feed or Public Gas Services
CONCLUSION
PT PERTAMINA (PERSERO)
I.1. INTRODUCTION
NEW REGULATION FOR OIL & GAS SECTOR IN INDONESIA (Implementation of Oil & Gas Law No. 22/2001 and Government Regulations No. 35 & 36/2004)
BEFORE
PERTAMINA Regulate and Supervise Upstream & Down Stream Business
PERTAMINA as a Single Operator/ Monopoly in Downstream Business and as a Coordinator for all upstream Business in Indonesia (PSC)
AFTER
DIRJEN MIGAS UPSTREAM : BP MIGAS DOWNSTREAM :BPH MIGAS
Regulator
Operator
PERTAMINA Manage for Oil & Gas Business, as a Representative of the Government)
BP MIGAS : Regulatory Agency for Upstream Business. BPH Migas : Regulatory Agency for Downstream Business
PT PERTAMINA (PERSERO)
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Indonesia total oil reserves (2005) around 8,6 Billion barrels. Reserves to production ratio = 18 years.
PT PERTAMINA (PERSERO)
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Indonesia Gas Reserves around 188 TSCF (2005) which main reserves located in Natuna, East Kalimantan, Irian Jaya and South Sumatera. For Natuna Reserves is not produced yet. Reserves to production ratio = 61 years.
PT PERTAMINA (PERSERO)
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1. Naptha 2. Condensate
[Cilacap, Tuban] Benzene P-Xylene o-Xylene (US$0.2-0.4 bil/plant) Methanol plant [Bontang, Bunyu]
PA
DOP [A nyer/Merak/Cilegon]
Plasticizer
Solvent, MTBE, Chemicals Formaldehyde Resins, Chemicals Solvent, Chemicals, Explosives Urea Fertilizer, Resins, A dhesives
3. Natural Gas
(Methane,Ethane)
Methanol
Ammonia plant [Bontang, Palembang, et all]
Methanol
Source, Deperin, 2007 PT PERTAMINA (PERSERO) 7
Ethylene
+70 (2007)
LL/HDPE
+20
200
HDPE
Titan *1 GT Petrochem SMI
+15
100
LL/HDPE MEG SM
450
216
340
Import
Import Ethylene
Asahimas/Satomo
EDC
360/265
Naphtha/Condensate
1,300
VCM PVC
Try Polyta
400/100
SEI
285/85 70
Ethyl Acetate PP
360
Nippon Shokuba i
*2
Acrylic Acid
60
Acrylic Ester
100
(Feedstock source f or suspende d C4 derivatives project) (Feedstock source f or suspende d aromatics project)
240
PT PERTAMINA (PERSERO)
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Light Naphtha
1,800
Condensate
4,500
A romatic Plant
Benzene Toluene
230
100
JGC/UOP
O-Xylene
120
P-Xylene
500
Kerosene/Diesel
300/140
Reformat
282
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Propylene PP Plant Ex. FCCU PP Product PX PTA PP Propylene Benzene Capacity (T/Year) 270.000 225.000 45.000 180.000 100.000
Propylene
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STEEL INDUSTR Y OTHER INDUSTR IES OWN USE LOST / FLARE TOTAL
L NG L PG
EXPORT 58.4%
Source : ESDM, 2006
PT PERTAMINA (PERSERO)
II.4. Domestic Petchem Feedstocks Balance Case : Condensate Gas Balance, in 2006
Unit : MTPA
Imported
1.8 2.6
Production
5.8 3.2
Domestic Consumption
PTM : 4.4 TPPI : 1.8
Exports
PTM : PERTAMINA TPPI : TRANS PACIFIC PETROCHEMNICALS IND. Source : Deperin, 2007
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1.3 6.9
Production
7.8
Domestic Consumption
PTM : 6.9 C.A : 1.3
0.9
Exports
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Indonesia Crude Oil (SLC) Price will be in the range of 56 - 65 US/bbl (in 2007) as per FACTS Prediction
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II. 6. LIMITATION OF GAS, NAPHTHA AND CONDENSATE SUPPLIED FOR DOMESTIC PETCHEM FEEDSTOCKS
A. GAS SUPPLIED AND PRICE : Most of Natural Gas utilized as feed of LNG, LPG (58 %) and only 7,3 % for Petchem Feedstock . Different Gas Price for Fertilizer Plant (Government Subsidy ) and Petrochemical Plants) High World Oil and Gas Price and its impact to Feedstock distribution B. CONDENSATE SUPPLIED. Mainly Condensate Supplied by PSCs (Upstream Production Sharing Contractors) and mostly is exported . For Pertaminas production is own use. C. NAPHTHA SUPPLIED. Mainly Naphtha Supplied by PERTAMINA. Beside own use , it is also exported due to Project Financing Agreement (Product Swap to Lenders ), so some Domestic Indutries should import for their requirements.
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(Solution required)
A. Domestic Petchem Feedstocks Optimalization : Optimize the utilization of Gas, Naphtha and Condensate ex Domestic Production for Fertilizer Plants, Olefin/Aromatic Plants, due to the facts that there is still huge export of Gas, Naphtha and Condensate but contrary it is also still high quantity imported of naphtha and Condensate for Domestic Petchem feedstock. B. GAS PRICING POLICY FOR PETROCHEMICALS PLANTS. Government to be have the same treatment for Gas Price Policy both utilized as Petchem Feedstock (Fertilizer Plants) and as fuel gas for Power Generation.
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Optimization Plan
Utilized Natural Gas for LNG Plant Projects (Mathindok)
Off gas ex RCC utilized as feed for Propylene Recovery Unit for getting Propylene product.
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IV. 2, Utilizing Natural Gas as feed of GTL or LNG Plant for Petrochemicals or LNG Production Case : Mathindok Gas Reserves , Central Sulawesi
LUWUK POSO
DONGGI
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PT PERTAMINA (PERSERO)
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It is required 4 years minimum to complete the GTL Project until commercial stage
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CDU-DM I
19.40
16.10
20.60
NPP - DM I 17.20
3.20
3.30
23.0
UPM S I
HCU-DM I
6.60 2.10
CDU-SPK
DEPO-SIAK
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N - Paraffin Plants
N_Paraffin
Sr. Kerosene
ABS Plant
Returned Kero
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No
1 2 3
PROJECT
South Sumatera Gas Development (just on production) Cepu Gas Development NGL Gas
Location
South Sumatera (300 MMSCFD) Central & East Java Plaju, South Sumatra
Projects are required for increasing gas supply for domestic market i.e Fertilizer Plants, City Gas and other industries.
Source : PTM, 2006 PT PERTAMINA (PERSERO)
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CONCLUSIONS
There is potential for further development of the Petrochemicals Industry since Indonesia is a producer of feedstock and also there are various that can utilizes petrochemicals products. Condensate and Naphtha for Domestic Supply should be increased in order to match with the requirements, finally it will optimizing the petrochemicals industry Gas Pricing Policy for Petrochemicals Plants beside Fertilizer Plants to be reviewed that also considering the high world oil price and its utilization for Petrochemicals Industry. Promoting of more effective for the utilization of Ethane rich gas resources both for LNG Plants, Public City Gas and as Petrochemicals Feedstock PERTAMINA also has and in progress to get an optimum return by optimalization of Gas, Naphtha and Condensate for Oil and Petrochemicals products.
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