Gas Business Opportunity

in Southeast Asian Country

Marketing & Corporate Sales – Strategy & Business Development Directorate
PT Perusahaan Gas Negara Tbk
Jakarta, January 2024
Disclaimer

This study is intended solely for the purpose of estimation and should not be construed as a final offer or agreement. The data and information provided within this
study are based on certain assumptions and factors that may evolve or change over time.

It is important to note that the rights to this information, including its confidentiality, ownership, and proprietary nature, remain the sole and exclusive property of
PT Perusahaan Gas Negara Tbk.

Any unauthorized disclosure, distribution, or use of the information contained herein is strictly prohibited and may be subject to legal action.
 Southeast Asia Region

Southeast Asia contributes 3.8% to the global economy, which is still disproportionate considering its population accounts for 8.5% of the world's
population. The average economic growth rate of 5.7% in 2022 indicates that Southeast Asia is poised for further development. Indonesia's GDP
per capita is ranked 5th, surpassing that of Vietnam, the Philippines, Cambodia, Laos, Timor-Leste, and Myanmar.
Myanmar, Thailand, Laos, Cambodia, Vietnam, Malaysia, the
ASEAN members
Phillippines, Singapore, Brunei Darussalam, Indonesia, Timor Leste
685 millions
Population
(~8.5% world’s population)
USD 3.83 trillion → 3rd largest in Asia after China and Japan
GDP
(~3.8% world’s economy)
4.7% (2019)
-3.2%(2020)
ASEAN economic growth
3.4% (2021)
5.7% (2022)

GDP per capita of ASEAN Countries (PPP, Current Prices, ‘000 USD)
88
90 90 15 15 15 16
80 13
80 14
70 70
56 10 12
60 60 10 9 10 10

Brunei Darussalam
Singapore
47 10
50

Malaysia
50 7,3
40 35 5,8 8
30 40 31 34 6
29 5,1 5,1
30 6

Thailand
30 5 5 5 4,3

Indonesia
3,2 3,4

Vietnam
20 2,9 4 2,6
20
10 1,4 1,6
10 2 0,9
0 0 0 0 0 0
2005 2010 2015 2023 2005 2010 2015 2023 2005 2010 2015 2023 2005 2010 2015 2023 2005 2010 2015 2023 2005 2010 2015 2023

16 16 16 16 16 15
14 14 14 14 14
12 12 12 12 12
10 10 10 10 10
10
8 8 8 8

Southeast Asia
8
5,7
6 6 6 6

Philippines

Cambodia

Timor Leste
6

Myanmar
3,9 5 4,0
4 3,0 4 4 4 3,4
2,2 1,9 2,1 1,9 4
1,3 1,2 1,4 1,8

Laos
2 2 0,8 2 1,2 1,3 1,5 2 0,7 1,2
0,5 0,5 2 0,5 0,8 0,2
0 0 0 0 0 0
2005 2010 2015 2023 2005 2010 2015 2023 2005 2010 2015 2023 2005 2010 2015 2023 2005 2010 2015 2023 2005 2010 2015 2023
 Vietnam Gas Balance

The domestic production of natural gas in Vietnam is unable to meet the domestic demand. Starting from 2023, Vietnam will need to import
LNG. The demand for LNG imports is expected to increase progressively, reaching 120 million standard cubic feet per day (MMScfd) by 2025
and escalating to 1,700 MMScfd by 2050. The majority of the gas demand is attributed to power generation, constituting 70%-86% of the
total natural gas consumption in Vietnam.
Vietnam Gas Balance
3.5

3.0

2.5

2023 2037 2050

2.0
bcfd

1.0% 0.0%
14.2% 14.0%
1.5 27.2%

1.0 70.1% 2.8%

84.8% 86.0%

0.5

Industrial Other Power

0.0
2029

2043
2022
2023
2024
2025
2026
2027
2028

2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042

2044
2045
2046
2047
2048
2049
2050
Industrial Other Power Domestic Production

Sumber: Wood Mackenzie

Vietnam’s Power Market Structure
Key Power Plants, Transmission Lines Map, and Forecast
North Vietnam Central Vietnam South Vietnam
 Vietnam proposed LNG to power plants in PDP8
No Project Capacity (MW) Period

1 LNG Quang Ninh 1500 ‘21-’30

2 LNG Thai Binh 1500 ‘21-’30
Vietnam has issued
1 the 8th Power
3 LNG Nghi Son 1500 ‘21-’30
Development Plan
2 4 LNG Quang Trach 2 1500 ‘21-’30
(PDP8) policy. As
5
5 LNG Quynh Lap/Nghi Son 1500 ‘21-’30 part of this national
3 6 LNG Hai Lang Phase 1 1500 ‘21-’30 target, the power
7 LNG Ca Na 1500 ‘21-’30 generation capacity
4 8 Son My 2 2250 ‘21-’30 from gas is aimed to
9 Son My 1 2250 ‘21-’30
increase from 9
6 GW in 2022 to 30
10 LNG Long Son 1500 ‘21-’35
GW by 2030. PDP8
11 Nhon Trach 3 & 4 1624 ‘21-’30
outlines 15 LNG-to-
12 LNG Hiep Phuoc Phase 1 1200 ‘21-’30
power initiatives
13 LNG Long An 1 1500 ‘21-’30
distributed along
14 LNG Long An 2 1500 ‘21-’35 the coast of
15 LNG Bac Lieu 3200 ‘21-’30 Vietnam.
TOTAL 25524

PDP8 Capacity target (GW)

7
9
13
12 8
10
14
11

15

Sumber: Wood Mackenzie

 Vietnam LNG Infrastructures

There are 2 LNG receiving terminals in Vietnam as of now. Vhi Thai

is already operational, managed by Petro Vietnam Gas, and Hai
Linh is inactive, managed by Hai Linh Co Ltd. Vhi Thai primarily
supplies LNG for power generation purposes.

Terminal Notes
Thi Vai • Located in Cai Mep Industrial Zone, Ba Ria – Vung
Tau
• Owned & Operated by Petro Vietnam Gas
• Capacity 1 MMTPA (to be upgraded to 3 MMTPA)
• First LNG received on July 2023
• Supplied
Hai Linh • Located in Phu Long Island off Vung Tau Bà Rịa–
Vũng Tàu
• Owned & Operated by Hai Linh Co Ltd
• Capacity 1.5 MMTPA
• Status Constrution (originally planned to be
operated in 2012)
Conclusion & Recommendation

1. 70% of natural gas usage in Vietnam is dedicated to power generation, and this proportion is
expected to continue rising, reaching 86% by 2050.

2. Vietnam is pursuing an aggressive direction in LNG development. In the Power Development

Plan 8 (PDP8), there are plans to construct 15 LNG terminals for power generation, with a
total capacity of 25 GW, and the majority are targeted to be operational before 2030.

3. Currently, there are already 2 LNG terminals in Vietnam:

▪ The Thi Vai LNG terminal developed by Petro Vietnam Gas, which commenced operations
in July 2023 with LNG supply from Shell Eastern Trading.
▪ The Hai Linh LNG terminal developed by the private company Hai Linh Co Ltd. This
terminal is still inactive up to now.

4. The development of LNG infrastructure in Vietnam presents promising prospects and could be
further explored by PGN, with potential partnerships, including Petro Vietnam Gas.
 Philippines Gas Balance

The majority, more than 98%, of natural gas demand in the Philippines is for electricity generation. Domestic natural gas comes from the sole
source, the Malampaya field, whose production is expected to continue declining and be depleted by 2028. Therefore, LNG imports are needed
to meet domestic natural gas demand.

2,000 2,000
Gas Usage Mix 2050
1,800 2% 1,800

1,600 1,600

1,400 1,400
98%

mmcfd
mmcfd

1,200 1,200

1,000 Power Others 1,000

800 800

600 600

400 400

200 200

0 0
2020 2025 2030 2035 2040 2045 2050 2020 2025 2030 2035 2040 2045 2050

Power Industrial Transport Residential & Commercial Others LNG Imports Piped gas (commercial & technical) Gas demand

Source: Wood Mackenzie

 Power Profile

44% of the power generation capacity comes from coal, while 12% comes from gas. However, despite this, the selling price of electricity in the
Philippines is among the highest in Southeast Asia.

140

Capacity by Energy Sources, 2023 End User Price ($US/MWh) - 2023

120 3% 0% 0%
210

100 19%
44%
173
13%
80 135
9%
GW

12%

60 97
83 81
40

20

Thailand

Malaysia
Singapore

Indonesia
Philippines

Vietnam
0
2020 2025 2030 2035 2040 2045 2050

Coal Gas Oil Hydro Renewables Energy Storage Nuclear Others

 LNG Infrastructure Projects
Terminal Notes Seven terminal projects have been approved by the
Philippines • Owned & Operated by Atlantic Gulf & Pacific Company Philippines' Department of Energy, as it looks to expand
LNG/AG&P LNG • Capacity 5 MMTPA
1 Terminal • Capex 262 million USD LNG usage into industrial, commercial, residential and
(FSU + landbase • Supply gas to Iljan I & II power plant (1200 MW) transport sectors in addition to power.
regas)
FGEN Batangas • First Gen (80%) and Tokyo Gas (20%)
2 LNG Terminal • Capacity 500 mmscfd
(FSRU) • Under construction
Pagbilao Grande • Owned & Operated by Energy World Corporation
Island LNG • Capacity 1.5 mmtpa (will be expanded to 3 mmtpa)
3 Terminal • Under construction
(landbase terminal) • Planned to supply to 650 MW-Pagbilao Combined Cycle power station (under construction)
SHELL ENERGY • Description: FSRU
PHILIPPINES INC • Location: Batangas City
4 •
•
Capacity: 3 mtpa
Estimated COD: September 2025
• Status: 20-month extension of Notice To Proceed issued in January 2023
LUZON LNG • Description: FSRU
TERMINAL INC • Location: Batangas Bay
5 •
•
Capacity: 4.4 mtpa
Estimated COD: December 2025
• Status: Permit to Construct issued in December 2022
VIRES ENERGY • Description: FSRU
CORP • Location: Batangas City
6 • Capacity: 3 mtpa
• Estimated COD: September 2025
• Status: 2-year extension of Notice To Proceed issued and valid until October 2023
SAMAT LNG CORP • Description: Small-Scale LNG Terminal
• Location: Mariveles, Bataan
7 •
•
Capacity: 0.32 mtpa
Estimated COD: Phase 1 in March 2024, Phase 2 in May 2025
• Status: Notice To Proceed issued in January 2023
Source: Reuters
Philippines Power Market Structures
Conclusion & Recommendations

1. The use of natural gas in the Philippines is primarily for electricity generation. Despite coal
accounting for 44% of the power generation capacity, the selling price of electricity in the
Philippines is among the highest in the ASEAN region.

2. The Philippines will need LNG imports to replace declining domestic gas supply from its sole
source, which is running out. The Philippines is poised to become one of the emerging LNG
markets due to the absence of domestic gas supply.

3. Currently, there is one existing LNG terminal in operation, the Philippines LNG/AG&P LNG
Terminal, with a capacity of 5 MMTPA.

4. There are two other terminals under construction, namely the FGEN terminal and the Pagbilao
terminal, with four more terminal development plans in progress.

5. There is potential for business development in the Philippines as a LNG supplier or as an

investor in future LNG terminal developments.
 Cambodia

Cambodia's electricity consumption is 11,738 GWh out of a total installed capacity of 2,767 MW (2019). The largest sources of electricity are
hydropower (34%), coal-fired power plants (32%), and imports (26%). According to the Cambodian government's plans, LNG will become one
of the source of electricity in the future.

12.000
Share of Power Generation (GWh) Cambodia’s PDP Generation Plan / Installed Power
11.000 Capacity (2022-2040)
10.000 Solar
Import 26%
9.000 34%
Coal
8.000
Biomass
1% 1%
7.000 Hydro 6%
Oil
6.000
32%
5.000

4.000

3.000

2.000

1.000

0
2001

2013
2000

2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

2014
2015
2016
2017
2018
2019
Source: https://media.vdb-loi.com/wp-content/uploads/2023/06/Final-PDP-Cambodia-English-version.pdf
Cambodia’s LNG Infrastructure

CNOOC Gas & Power

Cambodia Natural
Gas Corp.

• The first phase — from 2019 to 2020 — involved the import by CNGC of LNG via shipping containers.
• In a second phase from 2021 to 2023, CNGC plans to construct a gas-fired power generation facility and
the supply of gas to the facility using a chartered floating storage and regasification unit with 0.55 mmtpa.
• The third phase calls for construction of an import terminal with 3 mmtpa of import capacity between 2024
and 2029.
Conclusion & Recommendations

1. Cambodia's primary sources of electricity are hydropower at 34%, coal at 32%, and
imported electricity at 26%.

2. Currently, there are no gas-fired power plants in Cambodia, but it is projected that LNG will
become one of Cambodia's energy sources in the coming decade.

3. In November 2023, the Cambodian government canceled plans for a 700 MW coal-fired
power plant and replaced it with an 800 MW LNG-to-power project.

4. The existing LNG infrastructure involves distribution using isotanks by Cambodia Natural Gas
Corp with LNG supply from CNOOC Gas & Power. The next phase involves constructing a
regasification terminal and a Floating Storage Unit (FSU) with a capacity of 0.55 mmtpa,
followed by a final phase to increase the terminal's capacity to 3 mmtpa.

5. PGN can explore collaboration opportunities with CNGC for LNG business development in
Cambodia.
Thank You