IndoGAS 2019

Gas Infrastructure Development in Indonesia

20th January , 2019

Toshiki Miyazawa
LNG JAPAN CORPORATION
Disclaimer

LNG JAPAN makes no representation or warranty as to the accuracy,

reliability or completeness of the information provided in this document
and is not responsible or liable in any way whatsoever for any claim,
loss, damage, cost or expense, whether direct, indirect, consequential
or otherwise, arising out of or in connection with this information, its
contents or any omission from it.

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 LNG JAPAN
General Meeting of Shareholders

Board of Directors

 LNG JAPAN CORPORATION, established in 2001, is a 50/50 President & CEO

joint venture between two leading Japanese trading ● Corporate Planning Dept.
companies, Sumitomo Corporation and Sojitz Corporation.
Corporate Administration Division
 LNG JAPAN, from the days of its predecessor, has over 40 ● Human Resources & General Affairs Dept.
years of experiences in upstream development, financing,
marketing, trading, and shipping in global LNG industry. ● Finance Dept.

President & CEO Hiroshi KAWAHARA ● Accounting Dept.

● Internal Auditing Dept.

Number of Employees Approx. 100 (consolidated)
Business Development & Operation Division
Equity Capital Approx. US$ 431 million (as of March 31, 2017) ● Gas Business Dept. 1
Tokyo HQ

Annual Turnover Approx. US$ 1,085 million (FY 2016) ● Gas Business Dept. 2

 Sojitz Corporation 50% ● Gas Business Dept. 3

Shareholders
 Sumitomo Corporation 50%
● Gas Business Dept. 4

Domestic branch ● Kansai Office

 Ras Laffan Liquefied Natural Gas Co., Ltd.
● Chubu Office
 Japan Energy Service Corporation(JESCO)
 Japan Indonesia LNG Co., Ltd. (JILCO) ● Kyushu Office
Affiliates  Indonesia Natural Gas Resources Muturi, Inc.
 MNN Holdings Inc. ● Chugoku Office
 MCGC International Limited Overseas
 Gulf Helium Services L.L.C. ● Jakarta Liaison

● Doha Liaison
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Exchange Rate : US$1=\102 ● Singapore Liaison
 LNG JAPAN - Business Activities in LNG Value Chain

UPSTREAM & TRANSPORTATION MARKETING & LNG RECEIVING &

LIQUEFACTION & TRADING IMPLEMENTATION GAS SALES

Contract Receiving
Upstream Assets Shipping
Implementation Terminal
• Tangguh LNG (Indonesia) • Owning 2 LNG vessels
• 40-years experience as • Nihonkai LNG
• PT Badak (Indonesia) • LNG Transportation for
Current buyer’s coordinator for
• Sanga-Sanga PSC (Indonesia) Bali-Benoa Project
Activity Bontang LNG
• Ras Laffan LNG (Qatar) (Indonesia)
&
Track
Record Finance Trading Marketing Operation Service
Arrangements • Collaboration with • Bontang, Tangguh and
• Technical advice and support
• 5 LNG projects (Indonesia) for LNG loading & unloading
shareholders in world market. Qatar LNG
• 3 LNG projects (Other operations in Japan, Indonesia
countries) and other countries.

Potential New Expand

Upstream Asset
Future
• Focus on Asia Pacific
region including Indonesia
Transportation &
Trading Activity
• Expanding domestic transportation
business in Indonesia
• Optimization in global LNG market
Marketing of New
Project
• Bringing new LNG into Japan,
Indonesia and the global market
Gas Downstream
Business
• Developing new energy
infrastructure in Indonesia

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LNG JAPAN – Domestic LNG Transportation in Indonesia

New Era of small-scale LNG distribution : Involvement as a shipowner

Start : 2016
Loading Port : Bontang, East Kalimantan
Unloading Location :Benoa, Bali Bontang
LNG volume : 0.20-0.30 mtpa

* FSU : Floating Storage Unit

FRU : Floating Regasification Unit
Prodcution Transportation Storage Regasification Power
LNG LNG FSU* FRU* Gas
Liquefaction Tanker Power
Plant Generation

LNG Gas
Benoa Port, Bali
 LNG Japan is engaged in the LNG transportation for the Benoa Project as Triputra Owner.

Vessel : Triputra (ex-Surya Satsuma)

Length : 151.03m
Breadth : 28.00m
Draft : 7.018m
Tank Capacity ： 23,014m3 (Membrane)
Owners : PT. GTS Internasional 51.0%
PPT Energy Trading Co. Ltd. 25.0%
Mitsui O.S.K. Lines, Ltd. 19.2%
LNG JAPAN 4.8%
Charterer : PT. Pelindo Energi Logistik
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LNG JAPAN – Shipping Business

Total 13 vessels of remarkable shipping experiences

- Co-owner with Shipping Companies

Other Shipping Experiences

Existing

Triputra (22,500M3) Dwiputra (127,000M3)

Dedicated to Indonesian Domestic Trade Free Utilization (25%)
Owner (4.8%)
L N G L N G

Surya Aki (19,100M3) BGT Fleet (125,000M3 x 8 vessels）

Dedicated to Japanese Gas Company Used to be dedicated to Indonesia 1973 Contract
(4.975%) Owner through BGT Ltd. (25%)
L N G L N G

Asake-maru (87,000M3)
Used to be dedicated to Indonesia Yokkaichi Contract
Owner (60%), Transporter
L LN N GG

GDF Suez Point Fortin (154,200M3)

Dedicated to Yemen contract
T/C Owner (10%)
L N G

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 LNG JAPAN – LNG Projects in Indonesia

 Involvement into LNG projects in Indonesia for “more than 40 years”

 Holding 7.35% equity share of Tangguh LNG Project

Arun terminal
• LNG Japan had a share in PT Arun through
JILCO* until 2015.
• Arun started operation in 1978 as LNG export
terminal. In 2015, it was converted into LNG
receiving and regasification terminal.
(*) JILCO is joint venture between Japanese
utility companies, LNG JAPAN and others
Bontang LNG • LNG Japan holds a share in PT Badak through JILCO*.
• LNG Japan functioned as Project Developer in initial
stage and has been LNG Buyers’ coordinator for over
40 years.
• LNG Japan dispatches a commissioner to PT. Badak.
• Technical support staff from LNG Japan Group witness
loading operations as Japanese buyers' representative
at Bontang terminal.
Tangguh LNG Project

Lampung FSRU
Train 1&2: 7.6mtpa (3.8 mtpa/train)
frim June 2009
Nusantara Regas FSRU
Train 3 : 3.8 mtpa from2020 (Planned)

Shareholders
BP : 40.22%
LNG JAPAN : 7.35%
Others : 52.43%

• Tangguh Expansion Project (Train 3)

achieved FID on July 1st, 2016
• 75% of the Train 3 annual LNG
production sold to PT. PLN

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LNG JAPAN – LNG Import to Japan

Handling Long-Term LNG Contracts for 40+ years :

 Introduced and still handles long-term Indonesian LNG contracts
with key LNG buyers in Japan for over 40 years.

 Long-standing track record with expertise in implementing the

various contracts, i.e. support to contract negotiations between
sellers and buyers, coordinating commercial/operational matters,
and scheduling & shipping on demand.

 Functioning to facilitate the communication between sellers and

buyers, and among governments.

450+mil tons to date

25% of Japan’s LNG import volume

(accumulated 1969~Dec 2014)

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Gas Infrastructure Development in Japan

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Gas Infrastructure Development in Japan

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 Gas Infrastructure in LNG Value Chain

 What are infrastructures for gas & LNG transportation?

 Gas transportation pipeline with compressors and gas holders

 LNG production facilities

 LNG receiving & re-gas terminal onshore
 Floating facilities to receive and/or storage LNG.
 LNG ship
 Facilities for LNG transportation for smaller demand
• Coastal LNG tankers
• Tank lorry
• ISO container
• Satellite terminal/secondary delivery facilities

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 Gas Infrastructure in Indonesia

 Facilities for gas transportation

 Gas transportation pipelines have been developed froｍ Upstream
through Gas consumers
 Gas transportation pipelines have been installed in Sumatra and Jawa
island

 Facilities for LNG transportation

 LNG production facilities in Bontang, Sulawesi and West Papua
 LNG receiving facilities in Arun, Lampung, West Jawa and Bali
 LNG vessels for domestic transportation

 Investment opportunities in Indonesia

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 Consideration

 Investment for the gas infrastructures

 Investment by own cash or corporate finance may be required
 It may be difficult to obtain attractive IRR by the infrastructure investment
 Higher cost could be required for LNG transportation

 Foreign Investors needs

 To have a professional Indonesian company as a partner
 To understand the own situation of the country
 To understand and follow the government policy

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