C-Talk yang bertema “Company Strategy to Address Energy Transition and Investment”
Driving Indonesia’s NRE Energy Potential - Dannif Danusoputro
Pertamina Energy Portfolio will be aligned with Energy MIx Target in Indonesia National Energy Grand Design in 2025. Most of energy will be supplied fossil fuel with aggressively New and Renewable Energy (NRE) growth. Projection in Indonesia energy demand in Indonesia will be grow at 2,1% per annum until 2035. reduced demand expected in 2020 and 2021 due to covid-19 pandemic. energy mixed prospective to achieve target 29% lower emission in 2030 from National Energy Demand 7 million tera joule.
pertamina’s commitment to sustainability
our commitment is driven by the awareness to not compromising the ability of future generations in meeting their needs
pertamina sustainability policy
ambition is to be a leading and reputable Global Energy Company and to be recognized as:
a. environmentally friendly company b. socially responsible company c. good governance company
pertamina sustainability committee a. chairperson : president director & ceo
b. members : strategy, portfolio & new ventures director, finance director, logistics &
infrastructure director
to drive new & renewable energy growth in Indonesia energy mix, Pertamina develop several projects and activities
1. geothermal
potential additional capacity of 600 MW which will be developed in the next 5 years from 13 geothermal working areas
2. hydrogen
pertamina has started the initiatives for utilization of green hydrogen in Indonesia.
targeted to become first mover in SEA capturing early adaption application in Asia 3. ev battery & energy storage system
participate in Indonesia Battery Company Joint Venture with battery production 140 GWh in 2029. develop EV battery ecosystem including swapping & charging business
4. gasification
methanol plant construction for gasification with 1000 ktpa capacity. Plan to on stream in 2025
5. green refinery
construction green refinery with capacity 6 - 100 ktpa in 2025 6. bio energy
generator capacity enhancement in 2026, consist of: biomass/biogas 153 MW, Bio blending gasoil & gasoline, biocrude from algae and ethanol 1000 ktpa in stream in 2025
7. natural based solution
pertamina has built strategic partnerships with SOEs to lead decarbonization effort through NBS projects. Totalling up to 3,6 million hectares with 16 potential consession to be developed
8. new renewable energy
DME with capacity 5200 ktpa on stream 2025 pertamina’s investment strategy (2022 - 2026)
pertamina allocates CAPEX of 145 for Clean, New, and Renewable Energy. pertamina’s commitment is in line with efforts to use domestic resources to supply domestic energy towards green development and decarbonization
PNRE is executing its vision to become Indonesia’s Green Energy Champion in 2026 through three strategic pillars
vision
energizing people and planet with green energy
mission
leading pertamina energy transition towards NZE
strategic pillars 1. low carbon
2. new & renewable energy 3. future businesses
The challenge for not only for but for love company globally and also locally how we can produce you know to secure the energy security increase the production of oil and gas but same time we also produce a carbon emission and then energy mix which is really have a lot of sources that pardon it mentioned it's eight initiative that pertamina actually aiming and then also doing already but it is open you know to really collaborative action because they we cannot do it alone right so that that's really the you know what tried to say in the previous slides but it's very massive I think we we can have a one day session just to to go through in the wider deeper topics that mentioned but hey next one which is from which is really our neighbors and I'm sure there's a lot of things that that Sally will present for the next 15 minutes and it will enter each of what our knowledge of such a big
companies around us also doing in this energy transition and investment and the challenges that they can take to us I think that's only place
On this panel with Nikki with if I know and also in the panel member I very much look forward to hearing this I think RPG like to run have developed with everything energy condition I guess as an industry this is we are all carrying the same challenges carry the same responsibility to address this energy transition and I'm also excited to share what has been doing and I'm sure that you have my studies such as mentioned by Papa even this kind of initiatives require a lot of collaboration and sharing of experience I'm also very delighted to be here today in Jakarta convention and exhibition in Indonesia establish a closest neighbor we check those links in our language coming back here doesn't seem too far off from coming home very easy party also feel comfortable coming back here doesn't also is it important that market represented over two decades is better so if you look at the
integrated from where the cause of molecules and all suppliers I will bring the flag what the energy value chain and for us as well as downstream at the end of the session better not with the bank which is true forming a company called dentary accepted adoption and commercialization of clean energy delivery of renewable energy projects as well as rain mobility solution that right when people and within our group we also have but then it goes training center Lumia so while also being involved in art and fine as well as property and services and all these support services we feel necessary to support that agenda moving forward you have been impression over 100 countries across the continent with more than 40,000 employees around the world and it is a multi-diversity of culture as well as concept of other stuff I did woman also 10% personally I would stop this international stuff yeah and ladies and gentlemen I would hope related to companies that EG to stress the energy transition and Petronas has been awards that inability Jennifer over more than 2030 years in there in line with our purpose pressure not have been thriving and will continue to strive to be a progressive energy everything life that is our bed that's cool energy company to declare our estimated to exist weekend by 2050 going forward into the energy transition that is carefully balancing our shop term medium term as well as long term success towards that goal everybody knows but we have to call our test especially on the South and medium term goal we have outlines I get that I fear in change with that balance in mind and with that we also have to balance within the existing business as well as moving forward yeah and with that actually we have someone create what party strategy called moving forward together eat I thought so our new guidelines from now until at least 2015 so let me explain it this way everywhere you have everything except the continue to strengthen the value to the stakeholders so we quickly came to strengthen our call with 50% improvement in cash flow from operations why can't you 75 looking at the current margin for petroleum as well as petrol chemicals as well as lubricant we want to study more value as well as in the upstream oil and gas for additional 50% by 2025 this happened to ensure that I will be 30 and grow and explore more efficient and sustainable maybe pop hot damn it in parallel because the the the strategy to move to city and zero require a lot of fun so this is where our strategy is and to achieve this we are looking at operational and commercial excellence and to operate more efficiently can make you mad still looking at all the effort technology options to reduce to reduce our energy images with our court driving we aim to achieve 50% revenue from their new nontraditional business by 2015 so in parallel we will invest what's up our investment so we are shifting into a new business that can complement of oil and gas industry which is adjacent street example petrochemical we are familiar with commodity now we are shifting into take a seat get ready now we are fitting into non fuel retail business so this similarly apply to other business streams that we are looking for options for a new nontraditional business what we call it and when we select the approach making mine or weaker investment like Lou happen to pick but yet investments that we do so that at least 30% new revenue and lastly let you know don't have but we commit ourselves to track that and to put available technology commercial options to make sure that our business then zero carbon emissions by 2050 example committed he also initiated by 49.5 million tons by 2024 where at this moment we are apart he also imitated so along the way we have short medium and long term commitment that we are going to commit
ourselves to reach the lower carbon ended up moving forward together in tandem towards energy transition a new company that being formed as part of one division Petronas that require also directly to to the management of Petronas identity of this Petronas Coco polio when we collect Gentry and independent entity focus fully on clean energy solution to capture opportunity in the energy condition I guess other player also doing the same thing which one best petrol strategy do you want to focus to do the to find that all we can for clean energy so yesterday we provide a fit for purpose of new zero solution for customer to recover your expected business and help to fill their own reflective subway sub basements again while the existing assets looking at how much they can reduce the carbon emissions as practically as possible just sorry we look at possible solutions beyond normal thing that we do yeah so I will explain a bit which are the area that you are focusing no it helps good at three people that it aims to achieve by 2031 is the renewal energy gentle rain will build and overall energy capacity of 30 to 40 GW in key market by 2013 project across solar and offshore battery storage targeting commercial industrial and retail customer and this will be on Malaysian already has accepted or effort to produce 1.1 GW power of renewable energy yeah presently in operation and other development globally to reach the target by 2050 rupees 30 to 40 gigawatts so we have started about 1.1 giga giga Watt now yeah and which includes domination largest single solar roof top installation which is 7.4 MW that we have installed recently at our university technology Petronas and also oil installations underway in 60 seconds second one the investment has been put starting from few years back to look at the options for hydrogen get buy a compressed global supply network for post export and domestic demand and expiration to put it up to 1.2 million tons per annum of clean hydrogen by 2030 this segment target industrial power and some protection customer particularly the early adopter and today January has already signed 12 MOU with
international partner for project development in Malaysia India and also in the Middle East as well as some customers in each area covering initiative to explore the development of clean hydrogen project and each time quotation advocacy on policy and regulation to support the heterogen industry and study on a low carbon ammonia ammonia supply chain among others so this is the change that we are looking at 1 being but make sure that probably commitment to support the electric vehicles EV ecosystem by capturing 10% market share in order to deliver the estimated sorry will need to pursue the delivery of 25,000 particle charging point across key market in Egypt by 2013 of up to 9000 package starting point by 2026 entering its present in nature and India so basically in liquor alone we have accepted the network from north to South from central region to the east so this will continue so hopefully by 2020 2013 we will have 25,000 points 13 points to support their agenda I'm just afraid of entering accomplishing in the coming years more innovative idea that we get in and you have given us cash and budget to use to to to explore and invest in this area we've got this at the group level there are so many exciting projects that are being undertaken to contribute to our net zero carbon emission by 2050 expiration on top of gentery effort Petronas lubricants which is under my outfit is also among the first in the industry to introduce the rate of influence settlement in 2019 what we call it Petronas don't read this research and development have been factored and commercialized in our research and research and development center in Turin Italy or PvP also introduced the new EV charging features on this cattle applications so it also help for any car car to really touch and help the building career with seamless experience PDB also has demonstrated in PDP is our retail is everything but its capability and infrastructure readiness in supplying such aviation use at Kuala Lumpur International Airport it has been as part of two successful stuff like saving waste for PD to continue supporting the aviation industry one flight from Europe well I look for and from Kuala Lumpur to Singapore where we use stuff as a fuel we have influence and upcoming Greenfield bio winery as well and coprocessing at our existing facilities do not only produce stuff but also hydrogenated vegetable oil or extra oil for on road vehicles diesel powertrains and marine transportation as part of energy transition other than for him we are also looking at the biofuels
what he could suddenly under study and we are aiming to to have that sometime around 2026 timeline how can make alarm obviously if also exploring the so recycle plastic processing plant India bloodiest polymer plant in your home as well as you're also venturing into bio based petrochemical especially on personal care applications so this is also part of person moving from normal
hydrocarbon to bio based application in terms of but Nokia as well as I do expect to see chemical utilization burning fuel as a transition fuel continue to play an important role in the global energy mix especially with the current environment we continue to provide LNG to our customer our guest fitness head developer that has developed quite carbon neutral LNG cargo to China and Japan today and making a significant mark soil in our transition toward hello happen speakers but not
government kept you or storage CCS project before is also already well underway and the first we dissected in 2026 we expect the commerce first injection in our M1 at CCS which will be the solution to enable the production of hydrocarbon from our high CO2 field militia not only that they support our anxiety is a good but Petronas aspire to rush towards CTS industry to support the regional decarbonization agenda by offering the story to those that have limited capacity yet interested to have at their agenda India is provide the solution and position as a leading city as solution hub in this region so that the end we have several partnerships with industry leaders at the front end with MOU sign with Japan petroleum exploration which we somebody here as well as Mickey and Co limited simple continue to explore opportunities to innovate and also looking in the cleaner energy segment which is given by low carbon footprint and net zero carbon emission by 2050 we continue to seek partnership in order to accelerate the growth and for all parties to relax their sustainability agenda we believe that we can achieve great success with the strong support and collaboration of our partner as well as with the government and all parties to relax this agenda I look forward to work with Full disclosure during the session I also look forward to Petronas Petronas to continue working towards between and completing the 2013 well is that but
In fact the only recently we have unveiled our new strategy that squarely within the frame of the energy transition. Two weeks ago we have unveiled our new brand like our name from and to share more about the reasoning and the driver for changing the name like to share with you a video which explains very clearly you can play the video please everywhere you look the pace of change is accelerating technology and innovation are revolutionizing the way business is done every week but one thing remains we needed to live to grow 2 and drive stainable energy systems we must transition gas has a vital role to play as a bridge fuel to a low carbon future as to new energy sectors as an International Energy company with a gas weed portfolio we are committed to playing our part but like any business we must constantly evolve and adapt to the dynamic world around powered by our heritage as a whole by deprivation ships partnership and forward thinking investment strategies we are an international future energy champion for Abu Dhabi expanding across the gas value chain we are part of a sustainable energy future we are energizing what's next energy thank you so our I want a new brand as I said is a is a reflection of our new scope the new commitment to be energy transition which is clearly in front of us is reshaping the world around us and the hydrocarbon industry is facing us increased pressure as to respond and to adapt to the new landscape standing still is no longer an option and we must adapt quickly the ******* point as an industry we must be part of the solution we have the field we have the resources we have the infrastructure and capabilities to make the changes that are needed this is a significant change but also a major opportunity the second point is how do we make the contribution we energy adopted to play our part and thrive in the energy landscape I would believe is that the transition process represents a significant opportunity for our company as we heard also from my teacher that man help demand and provide or the translation as we all know natural gas is 50% lower than coal in carbon emissions gas is relatively abundant face and infrastructure exist to the consumer the strong gas demand but secretly in Southeast Asia Mac 88% growth in incremental gas demand 2000 2016 in southeast Southeast Asia alone at five times increase in energy demand counting from Southeast Asia Here in Indonesia the scale of electrification and coal to gas switching insurers strong gas demand grew at the same time we must ensure is equitable and human nearly four official people don't have access a reliable we must continue best in community and support them as we go through the transition at the end I mentioned before we two weeks ago we launched our new brand and we invited out the speaker CEO of the world energy council and they in support of the pollution that are lacking there will be energy as the humanizing the energy they need to understand what energy means to people in different communities this is part of our new strategy and road map to to play a hero in energy transition the next flight to I'm not familiar with the Mubadala energy allow me to share a little bit of information we are a leading International Energy company with a portfolio of operated and non operated after we are wholly owned by Mubadala investment company which is owned by the government of Abu Dhabi and the group portfolio is valued at $284 billion and spans five continents as modern energies we are a young company and we are very proud of our history of our story and success over the last 10 years just this year in 2022 for the first time in our history we have reached over 500,000 barrels per day of oil equivalent in production we employ over 500 people and I have present in 11 countries mostly in the eastern hemisphere North Africa where we have a presence in Egypt and Israel both major gas fuel in in Middle East Qatar with a dolphin project in Oman and UAE Abu Dhabi sports is our headquarters also we have a smaller presence in Russia and then here in in Southeast Asia where we are operator in Thailand in Malaysia and and here in Indonesia Indonesia we are present since 2004 and we are operating for offshore in the Microsoft trade the Super PC with a producing rupee gas field and the West offshore right the undermanned at one and 12
undermanned battle and also we have a non operated interest in the undermanned 2 PSC the Ruby field supplies reliably and safely jumps for the domestic market since October 2013 and we are operator with a 70% but in the short tile and the impacts are our partners each morning at 15% yeah
in English our operation as an excellent safety record we know last time incident during the
development and the production phase tablet and well established community investment program partnering with the local stakeholders the communities that support their their corporate
community community community of our operations also the recent breathing of the team plan well exploration well I located in my hand operated by harbor energy has discovered a 390 foot gas columns in that height and growth fine grain this is a particularly important for us because it's the strong signal that we occasions undermine one and S undermine you also improve material this provides competition for organic growth in line with the company that is your bias for football now moving on to our new strategy which I mentioned was cool down there recently so the idea for discuss what this energy position means for our doing but and they can confirm that even though we are trust funding we have a very clear mandate here prodigy and support from our management our shareholder and the government so first of all the focus is on that gap as the other speech fuel and we tend to build on our 70% gap bias portfolio we plan to expand across the just the unit rate such as energy and move into new energy sector definitely around and the expandable capture storage and utilization um we realize this this view or this prodigy is shared by many in our industry and actually we think that it is pretty encouraging and he's a strong signal that this strategy we have set ourselves is is the right one however challenges are are ahead of us for example when it comes to hydrogen although the market is developing quickly still there be much more the number of opportunities are available are quite small and highly competitive this is where our core value of parliament becomes in we have built strong and durable partnership over the years and we are proactively looking at how we can support the end invest in new energy projects how is the company master the renewable energy company is also getting support and has benefited from the pharmacy we have 4 in fact here in Indonesia Mazda has entered the market in 2020 forming a joint venture with PJ's subsidiary of Indonesia state electricity company to drive the development of the floating portable type power plant the countries floating solar project and one of the largest in the world producing 200 in conclusion we are committed to the energy transition and while there are challenges ahead a long term investment approach will unheard and realize a wide range of opportunities we are positioning ourselves our energy to realize this opportunity by expanding across the cap value chain and into new energy sectors will be vital and we would like to thank our partner here in for their continued support and encouragement very much you know both thank you Savannah