Abstract
This study evaluates the utilization of domestic coal-based dimethyl ether (DME) to substitute 15% of the total household sector demand of LPG import projected to year 2040 and the impact to the saving of state budget. Maximum LPG-DME blending in this study is 85% - 15% weight. DME-LPG mixture price at depot will be calculated based on DME FOB price at production plant, shipping cost, mixing and handling cost. The result of the research shows that DME-LPG mixture price and the import LPG price at each depot are 391 USD/MT and 620 USD/MT at Depot Tanjung Priok, 390 USD/MT and 620 USD/MT at Depot Eretan, 396 USD/MT and 622 USD/MT at Depot Tanjung Perak, 397 USD/MT and 622 USD/MT at Depot Gresik, and 401 USD/MT and 624 USD/MT at Depot Semarang. The substitution of LPG import with domestic coal-based DME results the saving of state budget about 388 million USD (IDR 5,332 billion). It concludes that the utilization of domestic coal-based DME is economically feasible to reduce the import of LPG per metric ton (MT), obtain the saving for state budget, and help the government to decrease the dependency of import LPG to maintain the national energy security.
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