Abstract
In this study, the distribution of LNG for power plants in the islands was designed using the Small-Scale LNG Carrier in the Sumatra region of Indonesia. It was further optimized through the use of the Capacitated Vehicle Routing Problem in order to maximize shipload. The research input variables were LNG requirements from receiving terminals, carriers with variations in loading capacity, and distribution distance. The calculation results showed 93 alternative routes with 3 different carrier capacities. The best combination of routes and cargo were found to be 7500 CBM carrier with route Arun - Sabang - Lampung - Arun, 5000 cbm carrier with route Arun - Nias - Belitung - Arun, and 2513 cbm carrier with route Arun - Bangka - Arun. The economic analysis showed that annual USD 74,346,340 CAPEX and USD 33,704995 OPEX at least results in an LNG sales price margin of USD 6.5 per mmbtu.Keywords: Small Scale LNG Carrier, LNG distribution optimization, Capacitated Vehicle Routing Problem.JEL Classifications: L95, R41DOI: https://doi.org/10.32479/ijeep.8103
Highlights
Indonesia has natural gas reserves of around 150.4 Trillion standard Cubic Feet (TCF) located in the Natuna Islands, South Sumatra, East Kalimantan, and Tangguh in Papua (KESDM, 2018) with 0.55 TCF of the production intended for the domestic electricity sector
The input from the calculation of the Capacitated Vehicle Routing Problem (CVRP) model (Raj et al, 2016; Sheldrick, 2017) used in this study was the distance between locations i with location j (Sij), demand for each receiving terminal, and type of LNG carrier based on the shipload (Q)
Based on data analysis and discussion on the distribution of LNG for power plants in the Sumatra, it can be concluded that a distribution route has been established using the CVRP method with due consideration for the distance, demand for each receiving terminal, and shipload capacity
Summary
Indonesia has natural gas reserves of around 150.4 Trillion standard Cubic Feet (TCF) located in the Natuna Islands, South Sumatra, East Kalimantan, and Tangguh in Papua (KESDM, 2018) with 0.55 TCF of the production intended for the domestic electricity sector. Nias Island, which is located west of Sumatra, has an isolated electricity system separated from the one being used in Sumatra This is associated with its geographical condition making it prone to earthquake and which led to the impossibility of constructing a gas pipeline in the area (KESDM, 2016). Alternative gas suppliers are needed, one of which is the Mini LNG Carrier Another province with isolated electricity system is Bangka Belitung Islands which is further divided into Bangka and Belitung System (Belitung, 2019). The province is new, being previously part of the South Sumatra province, and it needs a variety of infrastructure supporting various community activities including electricity It has limited power generation resources and this makes it necessary to import its primary energy needs from outside the region. On this background, the aim of this study was to determine the optimization of the distribution of LNG for power plants in Sumatra and get an overview of economic analysis based on the parameters of the financial feasibility of the distribution
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