East Kalimantan Environmentally Sustainable Development Strategy

79
granted in 2008–2009 and contain 12.7 tscf. Assuming continued auctions of CBM blocks 21 to 2030
(but at a more conservative pace and size) that would cover at least 60 percent of current resources,
East Kalimantan could produce an additional 2,500 mmcfd of CBM gas production by 2030.
This new stream of coal-bed methane would double business-as-usual gas production
by 2030 from 2,200 mmcfd to 4,700 mmcfd. Furthermore, this new supply of gas from CBM
could be used to raise LNG production at Bontang LNG plant to its historical utilization rate of
92 percent, despite the declining conventional gas feed. There should be ample markets for the
additional LNG from Bontang, from the existing buyers in South Korea, Japan, and Taiwan as new
markets such as China.
East Kalimantan has CBM resources of 109 TSCF,
almost a quarter of Indonesia’s CBM potential
1
2
3
4
5
6
7
8
9
10
11
Kutai
Basin
S. Sumatra
Barito
C. Sumatra
N. Tarakan
Berau
Ombilin
Pasir/
Asem
NW Java
Sulawesi
Bengkulu
TOTAL
Target
Formation
M.Enim
Warukin
Prangat
Petani
Tabul
Latih
Sawaht
Warukin
T.Akar
Toraja
Lemau
Completeable
Coal
Thickness
(m)
24
24
15
6
6
12
0.45
0.45
0.80
0.45
0.70
0.55
0.40
DRAFT
SOURCE: SPE: Stevens, S. "Indonesia Coalbed Methane Indicators and Basin Evaluation"
37
28
21
15
15
Coal
Rank
(R0%)
0.47
0.45
0.50
0.40
Avg
Depth
(m)
385
100
500
772
30,248
3.0
0.8
2.0
3.6
453.3
Building additional downstream gas processing facilities would result in a GDP increase
of IDR 3.6 trillion by 2030. Coal-bed methane should be fed to the Bontang LNG plant and PT
Pupuk Kaltim fertilizer plant until the gas feed exceeds the maximum capacity of these plants. By
2017, the CBM gas feed would reach the maximum capacity of the Bontang LNG plant: 3.7 billion
standard cubic feet per day (bscfd). By 2023, the excess CBM supply would reach 1.0 bscfd,
enough to operate two additional LNG liquefaction and purification facilities (called LNG trains) and
by 2030, three additional LNG trains. Building a new LNG train requires large capital investment
and can require up to five years to complete; thus investors are typically reluctant unless they can
be assured of sufficient long-term supplies. The decision whether to expand LNG trains based on
CBM supplies would be made in the future and depend on the regulatory framework at the time,
LNG prices, domestic demand, and certainty over supply. It may be easier to find investment for
capital-intensive downstream facilities such as fertilizer and petrochemical complexes that use
762
915
915
762
701
671
762
701
1524
610
610
High
Graded
Area
(km2)
7,350
6,330
6,100
5,150
2,734
780
47
CBM
Complet
Able
(Tcf)
183.0
101.6
80.4
52.5
17.5
8.4
0.5
Located in East Kal
109 tcf in
East
Kalimantan
(24% of
national
resources)
Exhibit 53
21 The four exploration blocks are Kutai West (5.1 tscf, explored by Newton Energy, Ephindo, and CBM Asia),
Sanga-Sanga (4.0 tscf, explored by Vico, BP, and ENI), Kutai-Ephindo (3.1 tscf, explored by Ephindo), and
Sanggata West (0.5 tscf, explored by Pertamina, Arrow, and Ephindo)