Professional Documents
Culture Documents
Mini LNG in Indonesia
Mini LNG in Indonesia
Contents
List of Graphs and Tables ............................................................................................... iv
List of Graphs .............................................................................................................. iv
List of Tables ............................................................................................................... vi
1.
2.
Introduction ...............................................................................................................1
1.1.
Background .........................................................................................................1
1.2.
Methodology ...............................................................................................................3
2.1.
2.2.
2.3.
2.3.1.
ISO Containers.............................................................................................5
2.3.2.
Satellite facilities..........................................................................................6
2.3.3.
2.4.
3.
2.4.1.
Interviews.....................................................................................................8
2.4.2.
Workshops ....................................................................................................9
Results......................................................................................................................10
3.1.
3.1.1.
3.1.2.
3.2.
ii
3.3.
4.
3.3.1.
3.3.2.
3.3.3.
3.4.
3.5.
3.6.
3.7.
Analysis ....................................................................................................................34
4.1.
5.
4.1.1.
4.1.2.
4.2.
4.3.
4.3.1.
4.3.2.
Conclusion .........................................................................................................49
5.2.
iii
iv
List of Tables
Table 1 Scope and contents of study..........................................................................4
Table 2 List of interviewees and interview items .....................................................8
Table 3 Refrigerated warehouse using cool air from LNG terminals ..................18
Table 4 Production of Liq. N2, O2 and Ar. from Air.............................................18
Table 5 Production of Liq. CO2 gas and Dry ice from emission gas from oil
refineries in Japan ............................................................................................19
Table 6 Cool heat recovery power generation for captive use ..............................20
Table 7 Road class regulation and ISO container specification..............................27
Table 8 Role of each participant ..............................................................................29
Table 9 Reference methodology of CDM project .....................................................30
Table 10 Monitoring methods ..................................................................................31
Table 11 Small scale IPPs of power supply for PLN in Sangatta...........................37
Table 12 Before and After conditions of the power plant for calculation ...............39
Table 13 Economic feasbility study of the Sangatta case .......................................40
Table 14 CO2 Reduction amount from fuel conversion ..........................................41
Table 15 Weight gap between Air Water products and Chart products on the same
LNG loading amount ........................................................................................43
Table 16 Monitoring methods for Sangatta case ....................................................45
vi
1. Introduction
1.1. Background
Energy consumption in Indonesia is expected to increase because of population and
economic growth. The presidential decree of 2006 formulated by the government of
Indonesia has aimed at reducing petroleum dependency and promoting natural gas
use in the context of diversification of energy sources.
However Indonesia doesnt have sufficient pipelines for transport of natural gas.
Location of gas pipelines is limited to Java and Sumatra islands. Also Indonesia has
many islands. Hence infrastructure for transporting natural gas to remote islands is
very limited. Consequently, there are many diesel generators in power plants, factories
and smelters in remote areas. For example, the number of diesel power generators in
remote areas in Indonesia operated by PLN is 4,500 units with total capacity of 2,500
MW.
The government of Indonesia has recently introduced a new policy for supplying LNG
to domestic market instead of exporting. This policy change will result in the supply of
natural gas for domestic market through LNG and increase quota of natural gas from
the production for domestic market. Eventually, the decentralized distribution system
of LNG to remote island areas would be developed. For example, PT Pertagas Niaga
and the association of natural gas distributors of PT Pertagas Niaga is conducting
feasibility study to transport LNG by ISO containers from Bontang to locations of end
users. Considering high dependency of remote island areas on diesel fuel, there is a
very big potential for introducing mini-LNG distribution system for remote areas. It
would lead to conversion of fuel from petroleum products to natural gas and
installation of cogeneration system using natural gas. Such applications of LNG would
result in reduction of fuel cost, energy saving and reduction of CO2 by considerable
amount.
In fact, Japan has been the largest LNG importer in the world. The natural gas from
LNG has been used for promoting energy saving and CO2 reduction by fuel conversion
since 1990s. Besides, Japan has severe terrain to not allow construction of gas
transport pipeline. There are, therefore, many satellite facilities like tanks and small
size vaporizers and equipments like ISO containers of LNG for transportation to
remote areas in Japan. Japan also has the know-how to achieve energy saving in end
users by using LNG.
2. Methodology
2.1. Scope of the project
The entire value chain from the gas well to end users is shown as Figure 1. There are
several steps, but considering the stakeholders positioning, Japanese consortium
would focus on supporting distributors and providing facilities, equipments and related
services including onsite storage tanks and accessories and ISO containers. Japanese
consortium could also provide energy saving facilities and equipments like
co-generation plant, but that would be in the first step of the study. The position that
Japanese consortium would take would depend on the demand by Pertagas Niaga,
local distributors and potential end users. Therefore, the consortium, would not decide
its position in the value chain and look for every business opportunity in the beginning.
Exploration,
exploitation
(Natural gas)
Gas well
On site
liquefaction
(Natural
gas->LNG)
On site
liquefaction
facilities
On site
vaporization
(LNG>Natural
gas)
Onsite
storage
tank
(LNG)
Transport
(LNG)
Power generation
Direct use
of LNG
(LNG)
Fuel for
transportation
Power generation
Main scope
Contents
1. Feasibility study on
conversion business in
Indonesia
to promote mini-LNG
transport and fuel
Indonesia
3. Promotion of know-how
Two types of ISO containers, semi-frame 40ft container for trunk line and full-frame 30
ft containers for sub trunk line of transport are considered.ISO containers can not be
applied for local class III roads because of its limitation of width.
Specification of 40ft ISO Container (Semi-frame)
Satellite facilities prepare storage tank, vaporizer, piping system to reserve LNG for
buffering the demand and supply gap.
As contrary to the conventional LNG tank for receivable purpose, the satellite LNG
storage tanks dont require very large land for development. Only 17000 mm x 24000
mm areas are required. This satellite facility can be easily developed in port, coal
mining area, power plant, big commercial buildings etc.
Indonesia has many islands. Sea transport is, therefore, very important. In Japan,
mini-LNG tanker for 1,000-10,000 has been already manufactured by Kawasaki
Heavy Industry and has been operated by domestic shipping companies.
Migas
Interview items
Technical
department
BPH Migas
Bappenas
Ministry of
Maritime
Transport
division
Railway
division
Land
transport
division
transport
Coordinating ministry of
Pertamina
companies
Pertagas Niaga
Interviewed organizations
Interview items
Distributers
Member companies of
Pertagas Niaga
Potential end
users
Timur
United Tractors
2.4.2. Workshops
In order to promote Japanese know how of operating mini-LNG satellite transport and
technical knowledge and specs of mini-LNG facilities and equipments manufactured
by Air Water or Kawasaki Heavy Industry, we had held a workshop on 18th February
2015 at Jasmine 5 at Intercontinental Hotel Mid Plaza in Jakarta.
3. Results
3.1. Japanese experience
3.1.1. Import and transport of LNG in Japan
Import of LNG has increased constantly since 1988 in Japan. In 2013, the import was
three times of that in 1988, reaching to about 90 million ton. In particular, additional
20 million ton of LNG between 2011 and 2013 was imported because of suspension of
atomic power plants due to damage by severe earthquakes and Tsunami in 2011.
10
In order to import huge amount of LNG, many receivable tanks have been developed in
Japan. Figure 6 indicates the location of receivable tanks, including both primary and
secondary receivable tanks. They are scattered all over Japan, but most of them are
located on the Pacific belt area which is the most industrialized area in Japan. Those
tanks are developed not only by gas companies, but also by electricity power companies,
petroleum companies and steel manufactures.
11
It is normal to transport natural gas from these receivable tanks to pipelines in most
parts of the world. But Japan did not have adequate transport pipelines of natural gas
from receivable tanks to end users. Only Kanto, Kansai and Chubu regions had
enough pipeline connection between end users and receivable tanks. Consequently,
Japan had to develop the satellite transport network of LNG from receivable tanks to
end users.
Current situation of the distribution of satellite facilities and gas
transport network
Satellite facilities
12
Figure 8 shows the typical system of mini-LNG transport. Tank lorry and container
freight train can be used for LNG land transport between receivable tanks and
satellite facilities. From satellite facilities, the LNG is vaporized to natural gas by air
temperature or warm water temperature, and then vaporized natural gas is
transported to factories and building of end users by pipeline.
In Japan, ISO containers are also used for multimodal transport by railway service
and land transport service. ISO containers were previously used for sea transport
between Kanto and Hokkaido.
Once certain amount of demand of natural gas is created by using these satellite
transport equipments, transport pipeline would be developed for this route.
Satellite
facilities
LNG
Receivable tank
LNG
Receivable tank
Freight
Station
Freight
Station
13
Satellite
facilities
In case of Kanto region, Tokyo Gas transports LNG by lorries to satellite facilities for a
maximum of 200km distance from Negishi or Sodegaura. Interestingly, this area has
distribution pipeline network, but some of distribution pipeline cannot transport
enough amount of natural gas to the end users and in some cases, there is no trunk
transport pipeline developed near the end users. Hence the LNG satellite transport
system is required along with pipeline distribution network.
Hitachi
Sodegaura
Negishi
Sourcehttp://eee.tokyo-gas.co.jp/industry/indus/lng.html
14
In another case, railway can transport LNG for more than 300km from Himeji to
Toyama or Niigata to Kanazawa. Railway can transport more than lorry transport. For
example the transport pipeline between Niigata and Toyama was constructed because
there was enough supply track record demonstrated by railway transport of LNG to
justify development of a pipeline to transport natural gas. Hence, the life span of
railway transport is not necessarily longer than lorry transport.
Niigata
Toyama
Kanazawa
Himeji
Figure 10 Distance of railway transport between satellite facilities and receivable terminal
15
Mini LNG tanker can also be used for 2,500 m3 size of LNG transport apart from
lorries and railway. Japan has inland sea transport for LNG transport from receivable
LNG tank to satellite facilities. For example, Japan uses 2,500m3 3,500m3 size of
mini LNG tanker for LNG transport.
The typical case is observed between Sapporo and Hakodate as well as Kitakyushu
and Takamatsu. The Kitakyushu LNG terminal is the primary receivable LNG tank
from abroad. Shinju Maru is operated from Kitakyusyu to Takamatsu in Shikoku for
380km for 17 hours journey. Shikoku gas has developed the secondary receivable LNG
tank at Takamatsu. After unloading LNG from the mini-LNG tanker and charging
secondary receivable LNG tank, lorries come to take LNG for satellite transport to
Imabari in Ahime Prefecture for 145km, Kouchi in Kouchi prefecture for 130km and
Tokushima in Tokushima prefecture for 70km. There is very good road connection
between Takamatsu and those destinations. This is a typical multi-modal transport of
mini-LNG between sea transport and land transport in Japan.
Takamatsu
Tokushima
70km
145km
Imabari
130km
380km
Kouchi
Figure 11 Example of multi modal transport of LNG using mini-LNG tanker and lorries
16
Natural gas vaporized from LNG is normally used for city gas, but Japan also utilizes
several other features of LNG like cool heat of LNG. Figure 12 shows general process of
LNG vaporization to natural gas and use of natural gas. In LNG receivable tank, cool
heat of LNG is sometimes used for refrigerators and manufacturing liquid air line
nitrogen, oxygen and argon gas. In the vaporization process, heat gap between LNG
and natural gas can be utilized for binary power generation called as cool heat recovery
power plant. In the end, vaporized natural gas is used for cogeneration including power
and heat generation.
In Indonesia, business developers of mini-LNG transports can also develop these types
of by-product businesses. If the receivable tanks and satellite facilities are located in
remote areas where fishery and agriculture are prevalent, they must develop these
kinds of businesses.
Receivable tanks
Evaporator
Factories etc.
~
~
~
Liquid gas
Refrigerated
warehouse;
Production of
liquid airs
Natural gas
Cool heat
recovery power
generation
17
Receivable
Commissioning
Capacity (t)
Temperature
Goods
Terminal
Nihon Cho
Negishi
1974
33260
Teion
-40~ - 55
-60
Tuna, amberjack
-50-60
Saibu gas
Fukukita
1982
-30
27600
engineering
Receivable
Commissioning
terminal
LNG through
Liq. N2
Liq. O2
Liq. Ar
put (t/h)
Negishi
1971
13.5
6.5
0.25
54
Sodegaura
1978
25
0.38
48
Chubu Ekisan
Chita
1980
10
0.1
52
Senboku II
1983
7.5
7.5
0.2
40
Niigata
1984
3.5
3.5
0.07
Kyusyu Reinetsu
Kitakyusyu
1984
3.5
3.5
0.08
15
Clear Air
Senboku I
1993
15
6.5
0.4
50
Hydro Edge
Senboku I
2006
12
0.15
18
3.1.2.3. Production of Liq. CO2 gas and Dry ice from emission gas from oil
refineries in Japan
Production of CO2 and dry ice also use cool heat from LNG receivable tanks, but it
needs one more source of rich carbon dioxide air. This is why these plants have to be
located next to a refinery. The oldest plant for manufacturing CO2 liquid air and dry
ice was developed in 1980 and is 35 years old. This type of plant also has a good track
record.
Table 5 Production of Liq. CO2 gas and Dry ice from emission gas from oil refineries in
Japan
Companies
Receivable
Commissioning
terminal
Capacity (t/day)
Liq. CO2 gas
(t/h)
Kinki Ekitan
Senboku I
1980
120
3.6
Chita Ekisan
Chita
1982
162
72
Tokyo Tansan
Negishi
1983
86
72
5.2
Osaka Tansan
Senboku I
2004
Mizushima
2006
48
370
19
LNG Receivable
Output
terminal
(MW)
1979
Senboku II
1.5
1981
Chita-Kyodo
1982
Senboku II
Technology
Pressure of gas
(t/h)
(MPaG)
Rankine cycle
60
Rankine cycle
40
1.4
Rankine cycle/Direct
150
1.7
150
0.9
150
0.9
150
0.9
expansion
1982
Tobata
9.4
Rankine cycle/Direct
expansion
1983
Chita
7.2
Rankine cycle/Direct
expansion
1984
Chita
7.2
Rankine cycle/Direct
expansion
1984
Niigata
5.6
Direct expansion
175
0.9
1985
Negishi
100
2.4
cycle
1986
Higashi-Ogishima
3.3
Direct expansion
100
0.8
1987
Himeji
2.8
Rankine cycle
120
1987
Senboku I
2.4
Direct expansion
83
0.7
1987
Higashi-Ogishima
8.8
Direct expansion
170
0.4
1989
Yokkaichi
Rankine cycle/Direct
150
0.9
expansion
1991
Higashi-Ogishima
8.8
Direct expansion
170
0.4
1996
Iwasakibashi
1.2
Direct expansion
45
0.2
2000
Himeji
1.5
Direct expansion
85
07
20
Industry use
Non-industry use
Source: http://www.ace.or.jp/web/works/works_0020.html
Figure 13 Number of net accumulated installed units of cogenerations system
Industry use
Non-industry use
Source: http://www.ace.or.jp/web/works/works_0020.html
Figure 14 Number of net accumulated installed capacities of cogenerations system
21
22
Source: IEA and ERIA (2013) Sourtheast Asia Energy Outlook, World
Figure 16 Primary energy demand in Indonesia by fuel
23
Considering the social background, Pertamina and Pertagas Niaga have already
started conducting feasibility study for commercialization of mini-LNG transport all
over Indonesia as shown in Figure 18. They have already developed road map for
preparation of mini-LNG transport and time-frame for development of loading
infrastructure for mini-LNG transport in Bontang as shown in Figure 19.
According to the roadmap, most of feasibility studies were conducted in 2014. In the
intermediate workshop held by Pertagas Niaga in December, Pertaga Niaga and its
association companies have already identified technical issues, but the big challenge
on middle size transport of LNG by sea transport to mining sites in Sangatta and
Berau area still remains. Hence, Japanese consortium has been requested by Pertagas
Niaga to cooperate for conducting joint feasibility study in the next phase.
In terms of the development of loading facilities, Pertagas Niaga only assumes barge
transport with ISO containers. Mini-LNG tanker, however, is necessary to satisfy the
demand of LNG in coal mining area. Pertagas Niaga and Japanese consortium
continue to discuss solutions to manage this gap.
24
25
In terms of LNG and natural gas provision for domestic market, some actions have
already been taken by the government of Indonesia. First, the Arun, which is originally
LNG exporting facility, would be converted to LNG import facility to provide natural
gas for north part of Sumatra. Second, Pertamina promotes the mini-LNG concept for
transport of LNG for domestic market in small scale using ISO containers and other
considerable equipments. Pertagas Niaga has been appointed for this concept and is
conducting several trials. Third, Ministry of Transport, Maritime division also shows
its interest, because the ministry has to follow the request of the international treaty,
International Convention for the Prevention of Pollution from Ships, 1973, as modified
by the Protocol of 1978 (MARPOL 73/78). In summary, there is no case to use
mini-LNG equipments and facilities right now, but demand can be considered to be
very high.
Despite this situation, there is no specific regulation and technical standard for
mini-LNG facilities and equipments in Indonesia.
The nodal agency of technical aspects of mini-LNG facilities and equipments is MIGAS
technical department. According to MIGAS technical department all equipments are,
in pricipal, allowed to be used when they follow international regulation or Japanese
regulation. Japanese regulations are sometimes very strict for Indonesian situation, so,
the government of Indonesia relaxes Japanese regulations in some cases and then
applies them for Indonesian market. The specification of each equipments and
faciliteies has to be shared with authorities in Indonesia to be examined. Once such an
examination is conducted, opeartors can use them more conviniently.
3.3.2. Safety regulation
In terms of labour safety regulation and guideline, it will be regulated by the Ministry
of Labour, but the actual operation manual in case of existing LNG export terminal is
developed by Pertamina. The ministry only regulates general matters and the ministry
always relies on specific entity to regulate technically specific matters. So currently,
Japanese consortium has to develop common understandings with Pertamina and
26
Pertagas Niaga on the safety regulation to handle mini-LNG facilities and equipments
in Indonesia.
On the other hand, another regulator of downstream natural gas business, BPH Migas,
has not been appointed for mini-LNG satellite distribution. BPH Migas is only in
charge of pipeline distribution, and in terms of pipeline distribution business, BPH
Migas is concerned with the safety issues. When the higher government, MIGAS,
appoints BPH Migas to control and supervise the mini-LNG satellite transport
business, then BPH Migas will develop regulations. Currently only Pertamina and
Pertagas Niaga are in charge. BPH Migas is, therefore, an outsider to this issue.
3.3.3. Road space limitation
Specification of road
ISO Container
Width
Length
Height
Weights on
20ft
30ft
40ft
mm
mm
mm
axist
Class I
2500
18000
4200
10
Class II
2500
12000
4200
Class III
2100
9000
3500
Special Class
2500
18000
4200
10
27
LNG provider
Distributers
End users
(Still negotiating)
Under negotiation
28
Role
Pertagas Niaga
(Pertamina)
Distributers
End users
Japanese consortium
29
CDM methodology
Scope
Transport
Storage
Use
Vaporization
Natural gas
AM0014
related
AM0088
AMS-III.BC.
improvement
30
Natural gas
CDM methodology
AM0014
related
AM0088
ACM0009
JCM Methodology
Baseline
Project
Monitoring methods
Without cogeneration
cogeneration
system
efficiency
generation
power generation
LNG
supply
Energy consumption
fuel conversion
Power generation
conversion
project
31
Category
Natural gas
CDM methodology
JCM Methodology
AMS-III.AY.
Transport of LNG by
Bontang and
destinations
related
destination
Only one diesel fuel track will be still remained to set the base
line
Fuel
consumption
efficiency
improvement
AMS-III.BC.
Transport of LNG by
fleets
container between
Bontang and
destination
destination
32
33
4. Analysis
4.1. Business plan
4.1.1. Project location
As of now, only one LNG loading facility is present in Bontang in the east Kalimantan
for domestic market. Bontang is the origin of mini-LNG transport. The potential end
users are located in Samarinda, Sangatta and Berau. Most of the potential users are
coal mining companies and their contractors, local governments, and power companies
like PLN. End user information is confidential from business perspective, so we cannot
disclose it.
In terms of the distance from Bontang, Samarinda and Sangatta are not so far, they
are less than or around 100km, but Berau is very far; it takes about 3 days by land
transport. In addition, road condition between Sangatta and Berau is not good because
the road goes over mountain area. The sea transport would therefore be examined in
the trial stage.
Japanese consortium discussed local distributors and some end users in these areas.
Finally, we focused on Kutai Timur government in Sangatta as the most promised end
user partner at this moment.
Berau
More than 500km
About two days journey
456km
Sangatta
75km
Samarinda
34
120km
Samarinda
120km
Balikpapan
Figure 23 Location of Sangatta
35
Recently, the electricity demand of households and business is growing. The only
demand which PLN knows excluding the demand of captive use in coal mining and
government sector is reaching a little lower than 16MW.
The peak demand of electricity has increased since 2009. In particular, we could find
sharp increase in demand between 2011 and 2012. The peak demand is still growing
every month. For such high peak demand growth, the power generators have been
added up to 15.8MW. In case the peak demand grows at the recent pace, the additional
capacity of power generation would have to be developed to cope with the demand
growth.
Source: PLN
Figure 24 Capacity of power generation and peak demand of electricity in Sangatta (PLN
know only)
36
Now, the government and private companies have a total of 15.2 MVA power
generation plants near Sangatta with in 20 km from Sangatta city area. Apart from
Kutai Timur Government captive power plant and a total of 11 MVA privately owned
public use diesel generators, the rest of power generators have limited capacity of
power generation. They have a maximum of 250KVA capacity only. The reason for
such small capacity is the low demand. Besides, current high fuel cost doesnt allow the
government to expand the capacity of power generators in remote areas in this region.
Hence, the local government of Kutai Timur looks for more economical and efficient
power generation system in this region.
Makuti Jaya
Public use diesel generators
100KVA2
Kutai Timur Gov. Captive power plant
3.5MVA
Sangatta Public use diesel generators
250KVA
The breakdown of privately owned public use diesel power generators is shown in
Table 11. The generated power is sold to PLN for public use.
Table 11 Small scale IPPs of power supply for PLN in Sangatta
Operation company
Location
Capacity
Fuel
a.
Sangata
3 MW
HSD
b.
Sangata
4 MW
HSD
c.
Sangata
4.5 MW
HSD
Source: PLN
37
In addition, the local government of Kutai Timur has 500 kVA generated by 7 units of
captive power generators for their own use. The power is mainly used for lightening
building. The generators are developed two sets by two sets and the generators do not
always work at the same time. Depending on the demand of electricity by government
building, each power generator is switched on/off by the operators.
The fuel of these power generators is supplied from Samalinda. Storage capacity of
tanks is 20 kl by 2units. 50 to 60 tons of diesel fuel is consumed in a week. In total
3400 kl 4000 kl diesel fuel was consumed per year. It is equal to 40 billion Rp. 50
billion Rp. in 2014. The local government of Kutai Timul has a need to reduce this high
fuel cost and they can consider converting fuel from diesel to LNG if the economic
viability is confirmed.
Figure 26 Captive power generators owned and operated by Kutai Timur government in
Sangatta
38
Number
Capacity of diesel
3,500
Unit
Note
kW
500kVA7
power plants
Availability
30
980
Operation cost
Fuel transport cost
After (Gas)
Power generation
60,000
USD/yr
3,800
11,400,000
Thematic calorie of
37.25
natural gas
kW
sets
60,000
USD/yr
120,000
USD/yr
3.5
JPY/kWh
Durable years
10
Year
20
0.9
kg-CO2/kWh
expenses
CO2 emission
Electricity
coefficients
Gas
2.29
kg-CO2/m3
Diesel fuel
2.58
kg-CO2/L
119
JPY/USD
Exchange rate
39
1500kVA2
USD/MMBTU
Maintenance costs
Interests and other
30000USD/yr
MJ/N
2 operators
kWh/yr
set
Operation cost
30000USD/yr
hr/yr
1
20
2 operators
Lease conditions
USD/yr
40
Operational hours
USD/KL
60,000
3,000
Availability
2 operators
30000USD/yr
4 operators
30000USD/yr
Unit
Grid electricity
kWh/yr
Diesel fuel
kL/yr
LNG(NG)
Nm3/yr
Current
Note
0
3,800
2,754,362
Fuel costs
Items
Unit
Current
Diesel fuel
USD/yr
LNG
USD/yr
Cost reduction
USD/yr
3,724,000
Note
2,203,490
1, 520, 510
59%
Units
1,261 USD/kW
3,781,513
Compressor
84,034 USD/Unit
168,067
LNG satellite
714,286 USD/Unit
714,286
300,000 USD/Unit
300,000
126,050 USD/Unit
756,303
trailer head
40,000 USD/Head
240,000
Total
5,960,168
Running costs
Items
Unit
Current
Fuel costs
USD/yr
3,724,000
2,203,490
Maintenance costs
USD/yr
100,000
335,294
Wages
USD/yr
120,000
180,000
Leasing costs
USD/yr
715,220.17
3,944,000
3,434,004
Total
Gap
USD/yr
509,996
40
Note
Unit
t-CO2/yr
t-CO2/yr
Current
9,804
6,307
3,497
36%
The second opportunity is in transport stage. Given the situation of installing LNG
satellite system, we still need to transport fuel from Bontang. Of course we can shorten
the distance of fuel transport between Samalinda and Bontang, but shortening of
transport distance is not a substantial improvement to JCM scheme. It is because
conventional technology is still used for transport from Bontang. In this context,
conventional technology of transport is the technology which has already been
installed for the trail activities by Pertagas Niaga. The equipment is ISO container
manufactured by Chart, which is a famous company in the world in this field shown in
Figure 27.
The technology employed by Chart is Super insulation type and Air Water employs
Composite type (Figure 28). Composite type of ISO container has the best feature for
land transport from maintenance perspective (Figure 29). In addition, Air water
product is lighter than Chart products in per loading LNG amount. In case of 30ft
41
container, the Air Water product is lighter than the Chart product by 2.6 ton (Table 15).
Based on this weight gap, the following GHG reduction has been calculated.
42
Chart
20ft
30ft
Loading weight
40ft
10.9
Dead weight
9.1
Total weight
20.0
Loading weight
8.4
13.2
10.9
18.0
Dead weight
7.5
11.7
11.7
16.0
Total weight
15.9
24.9
22.6
34.0
Weight gap
2.6
2,754,362 Nm3/yr
23.7 N/turn
116,218 turns/yr
7,318.5 ton-CO2/yr
3,497 ton-CO2/yr
10,815 ton-CO2/yr
Note: Emission coefficient of normal truck refer green partnership guideline developed
by METI and MLIT in Japan, http://www.greenpartnership.jp/pdf/co2/co2brochure.pdf
Figure 30 CO2 emission reduction amount calculation
44
Monitoring methods
Use
Transport
Improved tonnage-kilo meter method will be used for calculation. The gap
between the best and the second lightest containers weight will convert to
loading rate.
(http://www.meti.go.jp/committee/downloadfiles/g50910a11j.pdf)
LNG
Leasing f ee
Rental f ee
Ownership of
f acilities and
equipments
SPC
Products
Service line
&
Tech. Service Rental or leasing and
maintenance of the
equipments
Finance
Consulting of LNG
&
equipment operation
Operation
Rental
&
Maintenanc
e service
LNG
Local distributer
45
Leasing f ee
+
LNG charge
LNG
Kutai
Timur
government
Phase2-1
(Scale up)
Filling f acilities
Land transport
Storage
Phase2-2
(Sea Trans.
Barge)
Gantry Crane
Barge system
Land transport
Storage
Land transport
Storage
Phase2-3
(Sea Trans.
Tanker)
Loading f acilities
Sea transport
Loading f acilities
Storage
The time line has been developed by Pertagas Niaga. Pertagas Niaga is now
developing loading facilities in Bontang. According to the development of the loading
facilities, Phase 2 trials can be implemented step by step.
In between January 2015 and January 2016, loading capacity is limited to 0.8-2
MMSCF/d, but in 2016, the loading capacity will increase to 30 MMSCF/d and in
January 2017, the capacity will reach to mini-LNG tanker size. By then, all
preparations are expected to be implemented.
46
Jan.2015
Jan.2016
Jan.2017
0.8 2 MMSCFD
Loading capacity
30 MMSCFD
Loading capacity
Jan.2018
Construction satellite
facilities and procurement
ISO containers
Phase2-1
(Scale up)
Phase2-2
(Sea Trans.
Barge)
Phase2-3
(Sea Trans.
Tanker)
Field test
Design
of
whole
picture
of 2nd
phase
f ield
test and
procure
ment
Finding
potential
users
Construction satellite
facilities and procurement
ISO containers
Field test
47
The most important contribution of this project idea for sustainable development of
Indonesia is to not only introduce the mini-LNG transport facilities and equipments
and reduce GHG emission, but also enable developing huge opportunities in future to
convert primary energy source to natural gas and reduce GHG as well as other
pollutants. We cannot estimate positive impact from this idea precisely, but it is
believed that enormous positive outcomes can be achieved from this trial.
Capacity building on safety issues to handle LNG in Indonesia is also a very important
matter. According to Pertamina, it will control everything under its supervision during
the trial phase. So, no private entity is doing business in this field by itself.
Pertagas Niaga has already asked us to share our knowledge and experience in Japan,
and we held a workshop to transfer our knowledge on mini-LNG in Japan to
Indonesian stakeholders on 18th February, 2015.
During project implementation, the SPC will provide technical knowledge for
Indonesian stakeholders on how to handle the ISO containers and mini-LNG facilities.
Also, the SPC will provide the maintenance service of ISO containers because the
condition of vacuum of ISO containers is expected to be checked every ten years. This
technical service will be supported using Japanese technology. This maintenance work
would also prevent leakage of boiled gas from the container. Hence, this maintenance
will not increase GHG from the activity.
48
49