Publications

The success of the government program to shift from the use of crude oil to natural gas is determined by the available infrastructure, including gas pipelines. In Indonesia, one of the regions that still lack gas pipelines is East Java. It can be seen from the total demand up to 1486 MMCFD in 2030 (include Bali) despite the fact that the infrastructure that supports it very limited. It can be seen also from the number of open access pipelines which are only 430.4 km, the downstream dedicated pipelines of 8703.917 km and the upstream dedicated pipelines of only 151 km. The construction of a gas pipeline network is facing challenges as the plunging price of oil in the global market also affects the gas price. However, despite the uncertainty gas price, there is increasing demand for gas from consumers which has to be quickly responded to. To address this need, it requires an integrated planning which starts from commercial, technology and supply chain aspects into the planning period so that the development of gas pipelines infrastructure is more efficient in terms of time and costs by getting the suitable contract. This paper describes the results of the analysis of gas infrastructure development by using integrated planning in East Java. The study includes the study of the commercial outlook as the analysis of upstream gas sources, the existing pipeline in East Java and the potential gas market in East Java. The study of technology is to classify the pipe based on the needs of pressure and volume of gas. The study of supply chain starts from the analysis of Porter's Five Forces of the pipeline construction industry, classification of contractor and also procurement strategies. The implementation of integrated planning leads to potential time efficiencies and also brings about a potential cost saving compared to the conventional method. Keywords: Supply Chain Management, Gas Infrastructure, Sourcing Strategy, Gas Pipeline, Gas Distribution