DEFINING THE BEST LNG SUPPLY CHAIN SCHEME FOR

GASIFICATION OF SULAWESI POWER PLANTS

Oktobyanto Tri Raharjo1, Prof. Dr. Kuntoro Mangkusubroto1, Adam Nur Bawono2 and Bayu Lambang
Pamungkas2
School of Business and Management1 , PT Gas2
Institut Teknologi Bandung
Email: oktobyanto_raharjo@sbm-itb.ac.id

Abstract. Gasification of Sulawesi and Maluku power plants is part of the Decree of the Minister of
Energy and Mineral Resources No. 13/MEM/2020 (“Kepmen 13”) which is aimed at reducing the
consumption of High Speed Diesel (HSD) which has been one of the contributors to Indonesia's trade
balance deficit. With Kepmen 13, it is hoped that gas prices in power plants can be competitive with
HSD. Therefore, the optimal LNG logistics scheme needs to be determined considering that LNG
logistics can affect the capital expenditure (CAPEX) and operational expenditure (OPEX). The best
logistics scheme will be selected based on the smallest NPV as a cost function of CAPEX and OPEX.

In the gasification of power plants in Sulawesi and Maluku, there may be four logistics schemes, there
are: using Bontang hub with one LNGC and two LNGCs (each specifically serving Sulawesi power
plants and Maluku plants), and using Ambon hub with one LNGC and two LNGCs. Of the four schemes,
an evaluation of all possible logistics routes was carried out, thus creating 10,140 possible routes. The
simulated LNGC has 42 LNG Carriers (LNGC) with dimensions of 2,500 – 40,000 m3. Each of these
routes is simulated for all LNGCs. Thus, in total there are 425,880 route and ship simulations to
determine the best logistics scheme option.

In determining the distance between power plants, Netpass software is used. In determining the value
of CAPEX onshore regasification unit (ORU), an approach is used based on the data of Antara's thesis.
The OPEX value consists of OPEX for onshore regasification unit assumed to be 5%, LNGC fuel and
LNGC rental price. In determining the cost of LNGC fuel, it is obtained from Wartsila's LNGC data by
interpolating the data for LNGC, multiplied by the LNG price which is assumed to be 5 USD/MMBtu.
In determining the LNGC rental price, the data obtained from Antara's thesis data were interpolated for
LNGC.

LNG storage tanks used in size of 500 m3. In determining the LNG storage tank for each location, data
on the duration of the supply chain for each route is needed multiplied by the demand for power
generation, divided by 90%. The supply chain duration for each route is obtained by dividing the length
of the route by the LNGC speed (assumed 10 knots) added by the berthing-unberthing and loading-
unloading time of LNG at each ORU/hub.

The simulation is carried out using Python software, because it can process data, has many functions
and easiness to program. After programming and inputting data into Python, the most optimal logistics
scheme is the scheme using the Bontang hub to serve power plants in Sulawesi and Maluku using one
ship (no. 31, namely LNGC with a size of 17,500 m3) and the best route is Badak. NGL, PLTMG
Baubau, PLTMG Nii Tanasa (Kendari), PLTG Maleo (Gorontalo), PLTMG Seram, PLTMG Ambon,
PLTMG Namlea, PLTMG Ternate and back to Badak NGL with a total distance of 2,664 NM with a
total CAPEX of USD 160,798,153.34, total OPEX per year is USD 23,285,975.69 and NPV is USD
389,422,252.70.

Keywords: CAPEX, gasification, LNG, LNGC, OPEX, optimal, and Python.

INTRODUCTION
The Minister of Energy and Mineral Resources (MOEMR) release the Kepmen 13 has asked Pertamina
to gasification in 52 power plants with the gas price limitation is HSD price. But from those numbers,
only 30 power plants are ready at now to gas conversion and only three of it are in Sulawesi (Gorontalo,
Kendari and Baubau) and four in Maluku (Ambon, Ternate, Namlea and Seram). The gas demand of
Sulawesi Power Plants as Table 1 and Maluku Power Plants as Table 2.

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 Table 1. The Sulawesi Power Plants Gas Demand

Table 2. The Maluku Power Plants Gas Demand

LITERATURE REVIEW
The capital expenditure is all investment cost to build all of the facilities in the Onshore Regasification
Unit. Capital expenditures consists of jetty facilities, LNG offloading facilities, cryogenic pipe, LNG
storage tank, LNG pump, vaporizer, BOG compressor, generator, supporting building dan component
installation (Antara, 2017). Operational expenditure is all of the cost expense to support operational of
the LNG distribution, include the ORU and transportation cost to transport the LNG from the hub to the
receiving facilities (Antara, 2017).

Based on the coordinate of the power plant locations, as seen in Table 1 and 2, the sea distance will be
generate. For the Hub, PLTMG Ambon will use FSRU Ambon as hub, so the Ambon Hub coordinate
will be the same with PLTMG Ambon. For Badak NGL Hub, the coordinate will use the Badak NGL
coordinate. Power plant distances comes from the Netpas online software (Guide, U. (2015). The
distance matrix are shown in Table 3.

Table 3. Distance Matrix (NM)

The LNGC data from the IGU World LNG Report 2019 will be used. Because of the limitation of those
data, in order to LNGC assumption, the LNGC data using the Wartsila products (Wartsila, 2021), as
shown in Table 4. The Wartsila Vessels Data, to develop the estimation of the size, gross weight and
dimension and fuel consumption of LNGC. To develop the length of all (LOA) and the rental cost of
LNGC, will use the data of Antara, 2017, as shown in Table 5. LNG Storage Tank that will be used is
Chart with 500 m3 capacity each.

METHODOLOGY
The data processing will use the data which had been gathered previous. Data will be processed manually
and automated. For manual process, data will be analyzed using Microsoft Excel software and the
processing will automated using the Python version 3.9.5 software (Manual, 2021) to analyze the data.
Table 4. The Wartsila Vessels Data (Wartsila, 2021)

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 Table 5. The Length of All (LOA) and Rental Cost of LNGC (Antara, 2017)

LNGC data is mandatory data to run the simulation. Since the limitation of the data, and this simulation
is able to develop the new LNGC, in this paper will simulate the LNGC from 2.500 m3 to 40.000 m3.
The gas consumption and the gross tonnage (GT) are interpolated from Table 4. To develop the length
of all (LOA) and the rental cost of LNGC are interpolated from Table 5. By the combining data from
the Table 4 and 5, the LNGC data from size 2.500 to 40.000 m3 can be developed. From the 2.500 m3
until 20.000 m3 the size of LNGC for the simulation is gradually every 500 m3 to get the optimum size
of LNGC. Since 20.000 m3 until 30.000 m3 the gradual changes to be 2.500 m3 and after 30.000 m3
the gradual change again to 5.000 m3 since the sensitivity of LNGC will getting lower when the size is
bigger. So, the total LNGC for the simulation are 42 sizes.

Figure 1. All possible schemes in Gasification Sulawesi and Maluku Power Plants
To get the best logistic scheme, all vessels and all possible logistic route shall be considered to get the
best supply chain. The vessel for cluster Sulawesi and Maluku can be either one or two LNGC. All
possible schemes as seen in Figure 1. All possible routes will be run using all LNGC, 42 units, to check
the availability of the routes and LNGC size. So, the simulation contain of 5,802 possible routes
multiplied by 42 LNGC with come 243,484 simulations.
Table 6. The Capital Expenditure for ORU of Sulawesi and Maluku Power Plants

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FINDINGS AND ARGUMENT
Route selection is generated automatically by the programme with the lowest NPV as cost value. The
principal is to meet the lowest NPV as function of cost, in order to maximize the profit or to meet the
HSD price at plant gate. The programme result of the best route as seen in Figure 2.

Figure 2. The programme result of the best route

Based on the programme result’s in Figure 2, the best scheme is 3rd scheme, to serve gasification
Sulawesi and Maluku power plant from Bontang hub using single LNGC (no. 31) and the best route is
(8,2,1,0,4,6,5,3,8) with distance 2.664 NM, it means, the sequence of route or path is Badak. NGL,
PLTMG Baubau, PLTMG Nii Tanasa (Kendari), PLTG Maleo (Gorontalo), PLTMG Seram, PLTMG
Ambon, PLTMG Namlea, PLTMG Ternate and back to Badak NGL, as seen in Figure 3.

The LNGC that is used is number 31st, refer to Table 3.7 The LNGC Data, that LNGC has the size
17.500 m3. The selected route has the smallest distance, 2.664 NM and also with optimum LNGC, with
Vessel number 31st, as code of LNGC 17.500 m3. This means that the smallest LNGC will not always
result as selected because LNGC shall have minimum capacity to bring LNG to some areas with
minimum for the trip duration multiplied with the total volume of the served. When the minimum size
of LNGC is not meet, there will not be considered as choices, even though have less NPV, because the
supply chain shall be reliable.

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 Figure 3. Route selected of Sulawesi and Maluku power plant

CONCLUSIONS
1. The best route is (8,2,1,0, 4,6,5,3,8 or Badak NGL, PLTMG Baubau, PLTMG Nii Tanasa
(Kendari), PLTG Maleo (Gorontalo), PLTMG Seram, PLTMG Ambon, PLTMG Namlea,
PLTMG Ternate and back to Badak NGL) with distance 2.664 NM.
2. The most optimum supply chain is served using one LNGC LNGC 17.500 m to serve Sulawesi
and Maluku power plants using the Bontang hub since lowest NPV which come frome lower
operational expense and lower capital expense.
3. Ambon hub price will significantly increase the capital expenditure and operational expenditure
of logistic scheme from Ambon hub rather than Bontang because the price is very expensive
but the demand from Sulawesi and Maluku power plants is very small.

REFERENCES
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