PROPOSED SUPPLY CHAIN DESIGN FOR SMALL SCALE LNG USING SCOR MODEL: A CASE STUDY IN PT BADAK NGL

• Main Author: Yohannes, Ferri
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/63172
• Institution: Institut Teknologi Bandung

Energy consumption in Indonesia will continue to grow along with the growth of population and economic in domestic. Today, the energy consumption in Indonesia is still dominated by oil and coal energy. To maintain national energy security and sustainability in the upcoming years, the Government of Indonesia has proposed energy mix by reducing oil and coal consumption and promoting natural gas use. Liquefied Natural Gas (LNG) is considered as the best option to transport natural gas in Indonesia due to the geographical characteristic of Indonesia as an archipelago country. In the recent years, the interest of small scale LNG utilization has increased as the domestic demand has become more diverse in small scale application and more direct to end consumer approach. While the small scale LNG offers an interesting alternative for supplying natural gas in remote areas, there are several challenges for its expansion, including supply chain optimization and cost competitiveness. In addition, the infrastructures required to support small scale LNG supply chain are not well established yet. Considering the strategic location of PT Badak NGL in the middle region of Indonesia with the availability of existing LNG infrastructure in PT Badak NGL, implementation of small scale LNG supply chain emerges as the potential option to transport LNG from PT Badak NGL to the scattered consumers in domestic market, especially in Kalimantan and its surrounding area. In performing the business analysis, several tools are used, including PESTLE, Porter’s Five Forces, Strategy Diamond Model, and SWOT Analysis. This study also utilizes Supply Chain Operation Reference (SCOR) Model with process and performance approach as a research framework for data analysis. There are 24 performance metrics selected for the measurement of supply chain performance. The overall performance score is at a good level with a value of 72.27. However, 3 performance metrics have low level of achievement, consisting of inventory of supply – raw materials, capacity utilization, production plans cycle time. That low achievement indicates the main problems, which are challenge for sustainable gas resources in East Kalimantan, limitation of infrastructures for supporting small scale LNG supply chain, and ineffectiveness in implementation of supply chain. Based on the observation and evaluation, some solutions are proposed to overcome the problems. To solve the deficiency of raw material in the future, it is required to develop LNG hub facility in PTBadak NGL. In improving capacity utilization, various transportation modes are required for supporting small scale LNG supply chain, including to develop LNG cargo dock for accommodating LNG supply chain by using Landing Craft Tank (LCT) or small barge as well as modify loading dock #3 for operation of small LNG vessels. In addition, to improve the effectiveness of small scale LNG supply chain, good relation and coordination among stakeholders are required.