1. Gas Development Master Plan
Steering Committee Meeting – 28 March 2013
Draft Policy Note 5 : Framework for Gas Infrastructure
Development

2. 2
National Gas Transmission and Distribution
Master Plan

3. 3
National Gas Transmission and Distribution
Master Plan

4. 4
National Gas Transmission and Distribution
Master Plan

5. 5
The issues….
• The Government officially details its plans for the construction
of new gas pipelines transmission and distribution
infrastructure in the Migas National Gas Transmission and
Distribution Master Plan.
• The most recent version of this plan covers the period 2012 to
2025 and was issued by the Minister of Energy and Mineral
Resources and dated 6 September 2012.
• There is no information available which sets out the
methodology which has been used to prepare this plan, nor is
there any clarity on the supply/ demand scenarios on which it
is based.
• It appears to be a list of existing pipelines, the date built, their
relevant dimensions and a stated transportation capacity
(although the basis for capacity calculation is unknown)
together with a list of planned pipeline developments for
which data is less precise.

6. 6
More issues….
• The plan does not appear to have any strategic basis,
which is expected of any kind of Master Plan, covering
the essential issues such as:
– Supply point locations and volumes of gas available for domestic
consumption;
– Projected demand, by location, for the development of industrial,
commercial, residential or other (such as CNG for vehicles)
markets;
– Projections of gas flow or capacity requirements required to link
the supply and demand locations.
• There appears, therefore, to be ineffective transparency
in the regulatory process for the development of gas
infrastructure and no clear basis for a national strategy to
ensure that gas is delivered to appropriate locations in
appropriate quantities to enable its efficient utilisation to
the national good.

7. 7
Recommendations
• If the gas industry in Indonesia is to make maximum use of the
available gas resources and infrastructure in the country it is
essential that there is a Strategic Master Plan which sets out
the long term, coordinated policy for development of:
– Gas supplies allocated between exports and domestic utilisation;
– Markets which make the most efficient use of the gas to the benefit
of the national economy overall;
– Infrastructure which can deliver the gas supplies to those markets
safely, consistently and securely.
• In addition, it is essential that a clear structure for the industry
is decided and implemented with definition of roles and
responsibilities of all possible players within, including the
regulators. This structure should define how the markets for
gas will operate and interact with one another, what rules will
apply, what Codes of Practice for all aspects of operations, etc
in order that the policy can be fully and efficiently
implemented.