Liquefied Natural Gas (LNG) puzzle: Infrastructure Dependency and Political Stability in Midstream Energy Sector
Six years ago, Indonesia only has two LNG Plant, but in June 2009 BP Tangguh start making the third company that producing LNG, and next month in June 2015 Donggi Senoro LNG will be the fourth LNG producing company. BP Tangguh is controversial, and of course Donggi Senoro also controversial. DSLNG is the is LNG manufacturing company, so technically it is a midstream energy business. Which is the first company in Indonesia that separate the production and LNG manufacturing process.
DSLNG is a case study, how Indonesia survival ability being proven to part in the regional stability. Because with the issues of falling oil prices, there are also indicatio that failing natural gas will also appear as the development of new LNG plant this year. Will it follow the same path as Oil prices, we will never know. But from internal perspective, this should be a lesson from our government that LNG puzzle plays very important role
1. Infrastructure Dependency & Supply Chain Management
From Supply of Gas, to Ship Fleet
With Australia ambition to be global LNG exporter, and Japan LNG demand. Indonesia play an important role
3. Political Stability
This is different level of a game, a 30 years contract would be different than building a tol road, power plant or transportation. Energy business is very critical
How prepare for this? Read the rest of this entry »
When infrastructure project require decades timeframe, understanding infrastructure require a bigger timeframe. Why? let see this example:
– Pre-Project: 10 years
– Project Duration: 10 years
– Contract Duration: 30 years
So with more than 50 years, there are a lot of things, might be happened.
1901 Kruyt (Dutch) discovered Nickel ore in Verbeek mountains, Sulawesi
1937 Flat Elves, INCO Geologist study Nickel Deposit
1968 Contract of Work signed for 30 years (1968-2008)
1977 Soeharto opens Nickel Mining Facility
1978 Begin Commercial Production
1960 Freeport confirms Dutch discovery of the Erstberg copper
1967 Freeport Indonesia, Contract of Work I (1973-2003)
1973 Start Operating
1991 Contract of Work II ( 1991-2021)
Rome wasn’t built in a day. So when I studying about infrastructure in Indonesia, I need to read the previous chapter. The period between 1800-1942, I think is the missing part of current education in Indonesia.
1808 Anyer Panarukan Great Post Road
1848 Palm Oil
1867 Semarang Railway
1868 Ombilin, Discovery of Coal, 1892 first production
1897 Gambir, Coal Steam Power Plant 7.5MW
1906 Bandung, Hydro Power Plant 0.8MW
Jokowi write this , Daoed Joesoef write this , they are both great man, and they write it, document it.
Inkindo is an official formal organization for consultant. All consultant should registered in Inkindo.
One of the most important policy of Inkindo is release a consultant billing rate, it define how much cost of consultant in project. This document is very important to provide a standard rate, transparency between consulting player.
Consulting Industry is my passion.
That’s why after graduated from Computer Science, Gadjah Mada University, Indonesia. I works as IT Consultant. The reason is because at that time, the trending industry is information technology. Then I move to various IT dependent company such as Telco and Banking. But my passion is still the same: to provide insight to other people, so that’s why I managed to work with Big 4, because it was the best company to work for in providing advisory industry.
Consulting industry teach me about so many things. From how to be qualified, a couple of industry qualification is a must (PMP, CISA, CISSP). A strong brand is important, because brand means knowledge, exposure and guarantee, and at some point is very important. And the consulting industry, remind me that the term industry is not taken for granted, it has a consequences. It means, as an industry, it should meet certain number of target to achieve, inevitable of competition and of course business as usual.
The consulting industry word is sometimes, misleading. There is no such things as consulting industry from some people. But there is a Finance Industry, which need consulting service. Or Energy Industry which also need consulting service. And in my experience, at least in Indonesia, the biggest market for consulting service is for Finance Industry (OJK, Banking, Insurance) and the second is Energy Industry (Oil & Gas, Coal, Electricity).
As far, I have enjoy the Finance Industry, with a number of project from infrastructure implementation to development of payment system. And now I start to realize that this is the time to expand the knowledge that I got in Finance Industry into another industry. Which at this moment is Energy Industry.
So at this moment, I starting the research with renewable energy and electricity. Which the keyword that connecting it is sustainability. And I think, the future that would be interesting is on the public sector industry. So lets roll the ball.
The first thing that we need to do in order to make decision is to classify which is fact, which is opinion. But in the world of media industrialization like nowadays. To clarify and to analyze which is truth and which is sensational sentiment is very difficult. Even this more difficult when we find there a lot of issues that haven’t clear even in the scientific consensus.
Coal Reserve: 28 billion ton
35000MW in 5 year plan: 2015:10GW, 2016: 10GW, 2017-2019:20GW
62% from IPP, 38% from PLN
60% using Coal?
Budget: 1100 Trillion IDR
Current Capacity: 40.000 MW
SBY 5 year project, target 10.000MW, Realization 7.000MW