Feasibility Study of City Gas Distribution Network in Kelapa Gading, North Jakarta

Abstract

Kelapa Gading is one of the densely populated areas in DKI Jakarta with population density of 16,122 people/km2 that tends to increase every year. With increasing of population, the energy needs are likely to increase to meet household and commercial needs, such as restaurants. One of the alternative energies that can be used for daily needs is besides LPG is natural gas. Compared to LPG, natural gas is more afforadable, has abundant availability, and is environmentally friendly. The gas needed for the area is 4,326,856 m3/year with a route of 41,122.25 m using a combination of MDPE SDR 11 pipe and API 5L Grade B pipe. The capital expenditure is calculated to be IDR 70,511,737,825 with operational costs of IDR 4,141,071,275/year and project lifetime of 20 years. Based on the economic analysis, this project is feasible with households’ gas selling price of IDR 7,200/m3 and commercials’ gas selling price of IDR 8,400/m3, where the calculated NPV is IDR 5,303,138,979 with 12,29% of IRR and payback period time of 7 years.