DETERMINATION OF NATURAL GAS PRICE BASED ON THE ECONOMIC ANALYSIS USING THE NETBACK VALUE METHOD

• Main Author: Padlan, Aulia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/40081
• Institution: Institut Teknologi Bandung

Indonesia has very large natural gas reserves, consist of proven reserves and potential reserves. These gas reserves should be utilized for various kinds of needs. With the number of utilization option, there are differences in raw gas price. The gas field owners find it difficult to determine the gas selling prices for the different products depends on gas products prices and infrastructure. A method is needed to determine the raw gas prices by considering the gas processed products and the processing and transportation infrastructure. Using the netback value method, a design of processing, purification, and transportation is created in order to help designing the infrastructure of the gas field and determining the raw gas price. The netback value method helps estimating the raw gas price produced in the field using the economic analysis and calculation. The calculated parameters are the gas product prices, CAPEX cost, OPEX cost, Investment Rate of Return (IRR), lifetime, and depreciation. These parameters are calculated in each process, start from the gas field until the gas products. By using this method, the price for the raw gas will be obtained. There will be a lot of alternatives for the raw gas before it is processed, depends on the gas component and the final products. For each route, it will propose each price. The final products could be a single product or combined product. There are various kinds of products produced in this study. They are electricity (household electricity, industrial electricity, and transportation electricity), city gas, LNG, LPG, Methanol, Dimethyl Ether, Gasoline, and condensate. For each product, the price will be varying depend on the infrastructure and transportation in its route. There are 44 routes identified in this study. Each route produces a single product or combine product. A price for the raw gas is proposed in each route. This study has several conclusions. A design of gas processing, pipeline infrastructure, purification facility, and transportation is proposed. The design constructs 44 possible routes, with different final products for some route. A single final product could be produced by several routes, but there will be a different in infrastructure cost. The price proposed is in the form of range as the result of several economic factors in each route.