Gas Development Master Plan Introduction Capacity Building Workshop Bali, 1-2 July 2013

2 The project team Funding from AusAID through Indii Quality assurance by World Bank David Aron Team leader John Bowers Gas transportation expert Rita Jolly Petroleum economist Abdul Waheed Reservoir engineer Iyayi Osayi Project co-ordinator Ray Tomkins Economist Tatiana Tumenggung Economist Fred Beeltz Economic Modeller William Derbyshire Economist David Braithwaite Local Advisor Ferry Median Legal Advisor Model team

3 Objectives of the project Prepare a long-term Gas Development Master Plan (GDMP) gas demand-supply projections substitution of export gas with domestic supply flow patterns from existing fields to demand centers expansion of gas supply and transmission infrastructure Recommend the policy, legal, regulatory, and institutional framework for long-term gas sector development review existing policies, rules and regulations, initiate new policies attracting private sector participation. review gas utilization options in the domestic market

4 Components of the project Task A – Preparation of GDMP supply-demand scenarios identification and ranking of infrastructure projects economic benefits of gas investment requirements Task B – Policy notes PNs 1-6 – Review of the existing framework PNs 7-10 – Recommendations on PSC provisions, incentives for private investment, price regulation and the balance between export and domestic consumption of gas Task C – Training programme This workshop forms part of Tasks A and C

5 GDMP Model (DASS – TIM) The GDMP model is the key tool developed under Task A, and is used to identify the optimal infrastructure investment plan test the impacts of alternative policies on gas market growth, government revenues and economic benefits to Indonesia There are two components to the model DASS – Demand and Supply Scenarios TIM – Transport Infrastructure Model At the conclusion of the project, the model will be transferred to our Indonesian counterparts

6 Workshop objectives Introduce DASS-TIM to our counterpart team presentation of the model practical exercises for participants further training in DASS-TIM will take place later in the project Agree scenarios to be modelled using DASS-TIM subsequently these will be used to develop the draft infrastructure plan (Task A) the analysis will also feed into the development of the Policy Notes (Task B)

7 Agenda Monday, 1 July Morning Overview Introduction to DASS Afternoon Scenarios for analysis DASS practical exercise Tuesday, 2 July Morning Introduction to TIM TIM practical exercise Afternoon Integrating DASS and TIM Interpreting the results

8 Further information The consultant team is available throughout the workshop and is always happy to meet and discuss with participants We are readily contactable by Ray Tomkins William Derbyshire Tatiana Tumenggung Or you can contact us through the PIU