Open AccessTechnology selection of LNG receiving terminals in Gresik, East Java
Author(s) -
Ricky Putro Satrio Wicaksono,
Mahmud Sudibandriyo
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/543/1/012043
Subject(s) - java , net present value , liquefied natural gas , internal rate of return , payback period , terminal (telecommunication) , natural gas , environmental science , engineering , waste management , computer science , production (economics) , operating system , telecommunications , economics , macroeconomics
Java, the centre of industry in Indonesia, needs fuel gas supplies to maintain production continuity. The addition of gas infrastructures in the form of Liquefied Natural Gas (LNG) receiving terminals can be an alternative to secure gas supplies. Such a terminal is planned to be built in Gresik, East Java. This paper aims to examine the most appropriate technology for LNG receiving terminals to be built in East Java by considering both technical and economic aspects. In this research, LNG receiving technology was selected based on the terminal location and selection of the regasification technology using the method Analytic Hierarchy Process. Moreover, economic and sensitivity analyses were also performed. Research findings suggest the land-based LNG receiving terminal with regasification technology in the form of shell and tube vaporizers as the most suitable LNG receiving terminal in Gresik, East Java. Land-based LNG receiving terminal establishment in Gresik, East Java is feasible as regasification costs 0.468 USD/MMBTU, the Net Present Value (NPV) amounts to 31943500 USD, the Internal Rate of Return (IRR) reaches 19.25%, the Benefit-Cost (BC) Ratio equals 1.23, and the Payback Period (PBP) is 3.4 years. The throughput required by the power plant generates the greatest sensitivity to IRR.