Transcription

1 FUELS POLICY Presented at JARI Indonesia Roundtable Jakarta, 14 th February 2008

2 Outline 1. Framework of Fuels Supply and Utilization 2. National Energy Policy 3. Fuel Policy 4. Fuel Specification Improvement 1

3 FRAMEWORK OF FUELS SUPPLY AND UTILIZATION 2

4 FRAMEWORK of FUELS SUPPLY AND UTILIZATION INCREASING OIL CONSUMPTION ESCALATION IN WORLD CRUDE OIL PRICE INCREASING PETROLEUM FUEL CONSUMPTION LOW UTILIZATION OF NON-FUEL ENERGY UNBALANCED DOMESTIC FUEL SUPPLY AND DEMAND DOMESTIC FUEL SUPPLY GUARANTEE Minimizing petroleum fuel utilization Efficiency in fuels utilization Rationalization of price of certain fuels PRICES OF CERTAIN FUELS ARE STILL BELOW THEIR ECONOMIC PRICE LIMITED OIL AND GAS RESERVES FUELS DIVERSIFICATION Improving utilization of alternative energy 3

5 OIL DOMINATES WORLD PRIMARY ENERGY CONSUMPTION Source: BP Statistical Review of World Energy

6 Oil consumption by area Source : BP Statistical Review of World Energy 2007

7 Crude oil prices since 1861 Source: BP Statistical Review of World Energy 2007

8 World primary energy consumption Source: BP Statistical Review of World Energy 2007

9 CURRENT FUEL SUPPLY AND DISTRIBUTION Supply Oil reserves (total) is decreasing from 9,82 billion barrels (1999) to 8,68 billion barrels (2006) More than 90% of oil fields are mature fields. Twenty-nine existing fields, which produce 70% of total production, depleted in rate of 10%-30% (ave. 16%) per year in the last 10 years Natural gas potential reserve 334,5 TCF Natural gas reserve (total) increased of 26% from 134,53 TCF (1999) to 169,35 TCF (2006), 30% is reserve which is difficult to be developed (eg. Natuna) Natural gas production in the last 10 years is more than 8 BSCFD Domestic refining capacity cannot fulfill domestic fuel demand, therefore import is still a necessity to fulfill domestic fuel demand. Limited oil and gas infrastructure Limited fuel operational reserve Demand Certain fuel type are still in subsidized price scheme Petroleum fuel is still remain a main energy source in many sectors 8

10 INDONESIAN ENERGY POTENTIAL 2007 FOSSIL ENERGY RESOURCES RESERVES PRODUCTION RATIO OF RESV/PROD (YEAR) Oil 86.9 billion barrel 9.1 billion barrel*) 365 million barrel 25 Gas TSCF 187 TSCF 2.77 TSCF 68 Coal 90.5 billion ton 18.7 billion ton 170 million ton 110 CBM 453 TSCF *) Including Cepu Block NON FOSSIL ENERGY RESOURCES EQUIVALENT INSTALED CAPACITY Hydro Power million BOE GW 4.2 GW Geothermal million BOE GW 0.8 GW Mini/Micro Hydro 0.45 GW 0.45 GW GW Biomass GW GW 0.3 GW Solar kwh/m 2 /day GW Wind Power 9.29 GW 9.29 GW GW Uranium (Nuclear) * Only in Kalan West Kalimantan ton* e.q. 3 GW for 11 years 9

11 FUELS SUPPLY AND UTILIZATION CONDITION O Vision: Availability of appropriate, high quality fuel for the society Mission: 1. To supply fuels which meet quality and specification in affordable price 2. To reduce fuel subsidy without ignoring less-powered society and remote area 3. To improve conservation and efficiency i in petroleum fuel utilization 4. To improve fuel diversification Goal: 1. To reduce certain fuel subsidy 2. Shifting of kerosene to LPG completed in To shift usage of RON 88 gasoline to RON 90 gasoline 4. To limit it RON 88 gasoline usage only for motorcycles and public transportt Implementation Phases: 1. Usage of kerosene only for less-powered and remote areas by Usage of RON 88 gasoline only for public transport t and motorcycles by Utilization of LPG of 4 MTPA by Development of GTL fuels for transportation 5. Utilization of natural gas (pp (pipe gas, CNG) for potential consumers 6. Increase biofuel utilization for transportation sector 10

12 NATIONAL ENERGY POLICY 11

13 NATIONAL ENERGY POLICY FRAMEWORK SUPPLY SIDE POLICY SUPPLY GUARANTEE EXPLORATION & PRODUCTION CONSERVATION (PRODUCTION OPTIMIZATION) ENERGY PRICE DIRECT SUBSIDY DIVERSIFICATION DEMAND SIDE POLICY SOCIETY AWARENESS 12 CONSERVATION (EFFICIENCY)

14 NATIONAL ENERGY POLICY (PRESIDENTIAL DECREE NO. 5 YEAR 2006) Target of National Energy Policy in 2025 is the role of each energy type to national energy consumption as follows: 1. Oil, less than 20%; 2. Natural gas, more than 30%; 3. Coal, more than 33% 4. Biofuel, more than 5% 5. Geothermal, more than 5% 6. Renewable energy, especially biomass, nuclear, small scale hydropower, solar energy, wind energy, more than 5%; and 7. Coal liquefaction, more than 2%. 13

15 INDONESIA S ENERGY POLICY (PRESIDENTIAL DECREE NO. 5 YEAR 2006) CURRENT ENERGI MIX (1 million BOE) Hydro Power, 3.11% Geothermal, 1.32% National (Primary) Energy Mix Natural Gas, 28.57% Oil 51.66% National (Primary) Energy Mix of 2025 (BaU Scenario) (5 million BOE) Power Plant, 1.9% Mini/micro Hydro Power Plant, 0.1% Geothermal, 1.1% Gas, 20.6% Coal, 15.34% National Energy Mix 2025 (3 million BOE) (Presidential Decree No. 5/2006) Oil, 20% Oil, 41.7% Coal 34.6% OPTIMIZING ENERGY MANAGEMENT 14 Gas, 30% BIOFUELS, 5% Coal, 33% RE,17% Geothermal, 5% Biomass, Nuclear, Hydro Solar Energy, Wind Power, 5% Coal Liquefaction 2%

16 GOAL IN FUEL UTILIZATION 3,000,000,000 2,700,000,000 Target PEN 2,400,000,000 2,100,000,000 BO OE 1,800,000,000 1,500,000,000 1,200,000,000 80% 900,000, ,000,000 45,6% 300,000, ,4% OIL 20% 15

17 ENERGY DIVERSIFICATION Types of fuel Household Transportation Industry Power Plant Gas Coal LPG BBG Coal Briquette Coal gasification Coal liquefaction Biofuel Bio-ethanol Bio-diesel Bio-oil Geothermal Other Renewable Energy Biomass Nuclear Water Solar cell Wind CBM Hydrogen / Fuel Cell Oil Shale Biogenic Gas 16

18 ROADMAP FOR BIOFUELS DEVELOPMENT Year Biodiesel Biodiesel Utilization 10% of Diesel Fuel Consumption 2.41 million kl Biodiesel Utilization 15% of Diesel Fuel Consumption 4.52 million kl Biodiesel Utilization 20% of Diesel Fuel Consumption million kl Bioethanol Bioethanol Utilization 5% Gasoline Consumption 1.48 million kl Bioethanol Utilization 10% Gasoline Consumption 2.78 million kl Bioethanol Utilization 15% Gasoline Consumption 6.28 million kl Bio-oil - Biokerosene Utilization Biokerosene Utilization Biokerosene Utilization Biokerosene 1 million kl 1.8 million kl 4.07 million kl - Pure Plantation Oil for Power Plant PPO Utilization PPO Utilization PPO Utilization 0.4 million kl 0.74 million kl 1.69 million kl BIOFUELS Utilization BIOFUELS Utilization BIOFUELS Utilization BIOFUELS 2% of energy mix 3% of energy mix 5% of energy mix 5.29 million kl 9.84 million kl million kl 17

19 FUEL POLICY 18

20 FUEL POLICY 1. Categorization (subsidized fuels, industrial fuels, general fuels) 2. Supply : - Domestic feedstocks is allocated for domestic refinery feed - Opening opportunities for all business entities (SOE, private, cooperative) in fuel supply business - Improving infrastructure facilities 3. Pricing 4. Allocation for National Reserves 5. Environment friendly through improvement of fuel specification 6. Distribution system Implementation strategy - Improving fuel utilization efficiency - Shifting kerosene utilization to LPG - Improving utilization of biofuels - Limiting gasoline 88 consumption 19

21 FUEL SPECIFICATION IMPROVEMENT 20

22 FUEL SPECIFICATION IMPROVEMENT Fuel specification is formulated by considering : Engine technology development Environmental aspects Domestic fuel supplier s s capability Consumer s purchasing power

23 FUEL SPECIFICATION IMPROVEMENT Improving the quality of gasoline, by: Limitation of aromatic, benzene, and olefin content Decreasing sulfur content Usage of additives which are safe for engine performance and for environment Provide gasoline in several grades and quality to meet consumer s needs Improving the quality of ADO, by: Limitation of aromatic content Improving cetane number Decreasing sulfur content Usage of additives which are safe for engine performance and for environment Provide ADO in several grades and quality to meet consumer s needs

24 GASOLINE SPECIFICATION DEVELOPMENT YEAR GASOLINE TYPE RON Min. LEAD CONTENT Max gr Pb/L (cc/usg) SULFUR CONTENT Max % wt (ppm) 1979 Premium 87 0,75 (2,5) 0,20 (2000) 1990 Premium 88 0,45 (1,5) 0,20 (2000) 1997 Premium 88 0,30 (1,0) 0,20 (2000) 2001 Premium TT 88 0,013 0,10 (1000) 1991 Premix 94 0,30 (1,0) 0, 20 (2000) 2001 Premix TT 94 0,013 0,10 (1000) 1995 Super TT 95 0,005 0,20 (2000) 2002 Pertamax 92 0,013 0,10 (1000) 2002 Pertamax Plus 95 0,013 0,10 (1000) 2006 Gasoline ,013 (unleaded) 0,3 (leaded) 0,05 (500) 0,05 (500) 2006 Gasoline ,013 0,05 (500) 2006 Gasoline ,013 0,05 (500)

25 AUTOMOTIVE DIESEL OIL (ADO) SPECIFICATION DEVELOPMENT YEAR ADO TYPE CETANE NUMBER Min. SULFUR CONTENT Max % wt (ppm) 1999 MINYAK SOLAR 48 0,50 (5000) 2006 MINYAK SOLAR ,35 (3500) 2006 MINYAK SOLAR ,05 (500)

26 THANK YOU 25