Economic Analysis of LNG Distribution for Power Plant and City Gas in Bali

Abstract

Indonesia is a country that contains great potential for economic development and it is also impact on increased electricity demand in Indonesia. Ministry of Energy and Mineral Resources stated that increasing demand for electricity in Indonesia have reached 6,9% annually. PT. PLN as the electrical company in Indonesia has designed long term strategic development of power plant to anticipate increasing demand for electricity in Indonesia as documented at “Rencana Usaha Penyediaan Tenaga Listrik” (RUPTL) PT. PLN on 2018-2027[7]. The government has plan to convert the energy that will be used in power plants to become natural gas energy for utilization of power plants in Indonesia. PT. PLN is prioritizing the power plant that will operate by using Liquefied Natural Gas (LNG) as the main energy. PT.PLN also want to build the new Power Plant (PLTGU) in Celukan Bawang, Bali. The power plant will have 350 MWx2 as the additional power supply to reduce deficit of electrical power in Bali. Analyzing economic indicators is an important point to determined requirement Infrastructure and distribution Natural Gas at every district in Bali. In this study MCDM (Multiple Criteria Decision Making) is applied to model and solve multiple criteria optimization problems in economic process. The AHP method is presented to compare the best alternatives route of distribution LNG, the requirement to construct mini Natural Gas filling station, economical value of the distribution, and supply-demand at every district in Bali. Payback period (PP) and Return of Investment (ROI) calculation must be considered to develop economic value and fulfil the needs at every district by establishing a new mini LNG filling station in certain locations. The result of this research is expected to provide recommendation on best LNG distribution, which will assume lowest gas price at the end user. Accordingly, this will support the program of Bali clean and green.