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.