ECONOMICS STUDY OF LIQUIFIED NATURAL GAS BASED ON FIELD X GAS PRODUCTION SCENARIO

• Main Author: CANDRA PRAKOSA (NIM : 12213007), SINGGIH
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/24309
• Institution: Institut Teknologi Bandung

Natural gas is one of alternative energy resources besides petroleum and coal. It is also one of Indonesian export commodities. Before exported natural gas must be liquefied first to facilitate the transportation. Natural gas in liquid form is called Liquified Natural Gas (LNG). The world's LNG business has been described as a value chain consisting of four components: (1) Exploration and Production, (2) Liquefaction, (3) Shipping, and (4) Storage and Regasification. <br /> <br /> <br /> Unlike oil, natural gas sales are based on contracts that have been mutually agreed between the contractor and the gas buyer, either the price or the production. Gas field production scenarios need to be determined to get the most optimum benefits in terms of engineering and economics. To attract investors to an LNG project, the price per unit of delivered gas volume should be at least equal to the cost of production, disbursement, delivery, storage, and gas revaporization, plus the cost of capital used for the construction of essential infrastructure and viable returns for investors. The equally important parameters are the NPV and IRR values in an LNG project. The higher the value of NPV and IRR, the better the LNG project. <br /> <br /> <br /> From the results of this study, out of the five scenarios of gas field production under review, the gas field production scenario of 175 MMSCFD is a scenario that fulfills the time of the gas sale contract for 13 years and brings the most optimum profit with the RF value of 82.85%, NPV US$ 145,745,822.18, and IRR 11.97%. <br /> <br /> <br /> This study is useful to determine the gas field production scenario that can generate the most optimum profit in terms of engineering and economics based on the time of contract of sale and purchase of gas that has been agreed between the contractor and the gas buyer.