Publications

Numerous gas fields are currently in production and under appraisal in Indonesias offshore waters, but there also exist a number of gas fields whose modest reserve size and geographic remoteness make their economic feasibility doubtful under present development criteria.The present paper describes a liquefaction and marine transport system specifically designed to improve the chances of commercial exploitation of gas from such smaller, marginal fields and which is also equally applicable to associated gas rich in natural gas liquids.Moreover, the system is particularly applicable to linking production from margmal fields with areas of potential gas consumption which are themselves remote or at least are not geographically located so as to be able to make use of a conventional gas pipeline distribution system.Gas consumption in Indonesia is restricted to those areas which are relatively close to gas production and those to which it is economically feasible to supply by pipeline. However, in Indonesia as elsewhere, the development of population centres - as we11 as the physical location of mineral desposits which could form the basis for industrial development - do not cmform to the existing pattern of pipeline supply of natural 4s. The gas supply system described here, by making it possible to transport gas to remote geographic locations throughout the islands of Indonesia, offers one possible solution to the problem of getting fuel supplies to the countrys more remote regions and at an acceptable economic cost.The system involves the storage and marine transportation of LNG under moderate pressure (3.5. to 4.5 atmospheres), and is particularly suitable for linking one or more production fields with multiple ports of discharge. Gas from such operations can be liquefied offshore, transported to the reception terminal, stored and regasified at a cost in the range $1.75 - 3.50 per milion BTU depending on variations in volume and trading distance. As the domestic market value of natural gas currently fails within this cost range, the potential exists for the system to prove economxally viable for use within Indonesia.