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Case Study: Maximizing Business Performance by Optimizing Supply Chain Of LNG-C Distribution of 9 Gas Power Plants with A Capacity of 780 MW in Eastern Indonesia

Proceedings Title : Proceedings, Indonesian Petroleum Association, Digital Technical Conference, 14-17 September 2020

The Government of Indonesia plans to build 9 gas power plants in South Kalimantan, South Sulawesi and Southeast Nusa Tenggara with a total power capacity of 780 MW with an estimated actual gas demand of 46.56 MMSCFD which are planned to be supplied by the Bontang terminal, DS-LNG, Masela LNG, and Tangguh LNG. LNG-C logistics optimization is needed to get the best transportation scenario regarding the eastern region which consists of scattered islands and inadequate infrastructure. This study analyzes and evaluates the best-case scenarios by comparing the time and cost variables. The process of planning the supply chain starts from determining the upstream-downstream distribution scheme and then calculates the shipping distance which results in the determination of the quantity, capacity and shipping of the LNG-C. Based on the analysis and calculation of the logistics, it is concluded that there are 3 divisions of clusters of Kalimantan-Sulawesi, NTT and NTB having estimated needs in a row of 18.06, 18.8, and 9.7 MMSCFD with the Milk-Run transportation method. Logistics optimization results show that scenario 1 has an efficiency value of 87% with an LNG-C transport capacity of 0.35 MMSCF, a roundtrip cruise time of 8.6 days and the number of shipments is 36 / year. The detailed analysis of costs in scenario A is 1-2 USD / MMBTU for the milk and run transportation method, 1.49-1.73 USD / MBTU for LNG-C transport costs, and regasification costs which are 1.0-3.7 USD / MMBTU. Based on the above results it can be calculated that the price of gas in the first year of implementation was 13.4 USD / MMBTU, so the total value below this supply chain was Rp.8,812,876,800.00. Therefore, this idea was created as a solution for the initial steps for the utilization of the domestic natural gas distribution

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