Proposed Strategies to Improve Energy Efficiency at PT Badak NGL

Abstract

As an energy company, PT Badak NGL continues to innovate to improve the energy efficiency in its plant operation. However, as the amount of feed gas continues to decline, the percentage of fuel gas increases gradually. The reduced amount of feed gas results in a low load factor of the operating equipment, causing inefficient plant operation. The 2018 benchmark results show that PT Badak NGL’s energy efficiency performance is below average. Although the Key Performance Indicator (KPI) targets related to energy efficiency are almost always achieved, there is a decreasing trend every year. Plant energy efficiency is an important issue. It relates to the amount of fuel losses, which can be converted into LNG as country income, and to the amount of carbon emissions as the result of fossil fuel burning. This study is performed to find what are the root causes of the plant inefficiencies and to propose strategies to improve them. Using the Focus Group Discussion (FGD) method, energy reviews were conducted to determine each plant area’s Significant Energy Use (SEU). Furthermore, the root cause analysis can be made in a Current Reality Tree (CRT). The Value-Focused Thinking (VFT) method is used in formulating alternative solutions for each cause of energy inefficiency. Analytic Hierarchy Process (AHP) is used as a decision-making tool from the alternative solutions. Sensitivity analysis is also carried out to ensure the robustness of the decisions made. From the study, there are nineteen root causes that cause plant inefficiencies. Twelve controllable root causes have been solved by developing internal procedures or studies, while seven outstanding causes can be solved with five alternative solutions. AHP, which was carried out using the criteria of cost, impact on energy efficiency, completion time, and complexity, showed that there are top three priority solutions that must be implemented as soon as possible, namely the building energy management project, the LED replacement project, and flow and pressure indicators installation for pumps. The proposed strategy is set with a completion target of three years.