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The Feasibility Study Of Small-Scale LNG Plant Plant From Coal Bed Methane To Fulfill Energy Needs In Indonesia

Proceedings Title : Proc. Indon. Petrol. Assoc., 37th Ann. Conv., 2013

Indonesia is facing energy scarcity as the country relies heavily on mostly imported oil for electricity and transportation to meet the growing domestic demand. Thus Indonesia must seek alternative energy sources such as Coal Bed Methane (CBM). Indonesia has a high prospective of CBM resources, with an estimated 453,3 Tcf located mainly in Sumatra and Kalimantan. CBM in Indonesia contains about 90% methane and less CO2. Gas production from CBM wells can be sold as LNG on a small-scale to remote areas where no gas pipeline network is available. During the last decade several liquefaction technologies are available for small-scale LNG plants, such as, mixed refrigerant and expander. In this study, LNG technology that will be used is expander technology for given development scenarios. The design parameters of equipments are calculated and reported. An economical analysis was performed in this scenario. Economical analysis can be done by reviewing investment cost, net present value, internal rate of return, and payback period. The results indicate small-scale LNG plant is feasible to develop in Indonesia. The analysis also shows that price of CBM price and LNG determines economical evaluation of this project.

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