Economic analysis on the LNG Distribution to power plants in Bali and Lombok by utilizing mini-LNG carriers

Abstract

In recent years, small-scale LNG has contributed significantly in supplying the demand from industry users of natural gas as clean fuel. Small-scall LNG has the advantages of providing the greater operational flexibility and lower initial investment cost than conventional LNG or pipeline supply. Focusing on the case in Indonesia, many designed gas-fuel power plants are located in remote area or in the limited depth of water level especially in eastern part of Indonesia, such as Lombok and Bali. Therefore, small-scall LNG is purposed to overcome the natural gas demand in such conditions. Two scenarios were developed in this study in utilizing the conventional LNG carriers to deliver the natural gas from origin located in LNG terminal Benoa, Bali, to several power plants in Bali and Lombok. Both scenarios are new ship LNG building and the conversion of Landing Craft Tank (LCT) into non-conventional LNG carrier. Economic analysis on the LNG Distribution to power plants in Bali and Lombok utilizing mini LNG carriers is the main objective of this study. Capital Expenditure (CAPEX) including mini-LNG carrier, investment in jetty, storage facility, regasification unit and the system distribution to the power plant were considered. While the Operational Expenditure (OPEX) consist of operational and maintenance cost in receiving terminal and LCT. The result of this papers can be concluded that based on the economic perspective, utilizing the mini LNG carriers are feasible and requires relatively small cost to supply the LNG demand in Lombok and Bali.

Economic feasibility study due to implementation of dual fuel engine of mini-LNG carrier in LNG distribution to power plants in Bali and Lombok

“…The economic aspect of the implementation gas fuelled engine conversion will be presented in this paper. This study is actually the continuation of previous study and part of authors' research maps about the small scale LNG distribution for power plant in Bali and Lombok Island, Indonesia, by utilizing LCT as mini-LNG carrier which carrying LNG stored in the ISO tank [6].…”

“…Therefore, a brief overview of the LNG distribution design in Bali and Lombok will be explained first in this chapter. The detail of the LNG distribution design can be found in the previous study [6].…”

“…Unloading the LNG ISO tank from the ship is conducted in in the receiving terminal and then the truck will transport them to stacking yard. Finally, LNG stored in ISO tanks can then be supplied to fuel power plants after being regasified [6].…”

“…It happens due to the component cost for building the ship is surely higher than converting the existing ships, while the CAPEX in terminal and powerplant for both scenario is same. The calculation OPEX in this study is an adjustment from previous study [6], especially those related to the operation of the main engine, such as fuel costs, lubrication costs and maintenance costs for dual fuel engines. The cost for gas and pilot fuel has been calculated in Table 4.…”

Optimization of the risk-based small-scale LNG supply chain in the Indonesian archipelago

“…The high ship accident rate of 23% is related to force majeure or environmental factors [ 7 ]. Other risks include very shallow sea depths in ports [ 8 ], a lack of necessary infrastructure to distribute LNG to GPP/GEPP sites [ 1 ], the absence of an economical multi-destination LNG supply chain model [ 8 , 9 ], and load uncertainty that affects transportation costs [ [10] , [11] , [12] ].…”