Publications

Simenggaris is an area in the Northeast of Kalimantan, which has some stranded natural gas resources that need to be developed as soon as possible. The development of the resources is challenged by the conditions of the remoteness of the area. However, there is a demand from the nearby island to fuel their electric power generators. This is a potential market for developing the natural gas supply from Simenggaris. Despite this potential, the method of transportation needs to be evaluated in order to define the most suitable and economic method to transfer the gas to the end users. In this paper, we have evaluated three transportation methods that can be applied. These are Marine CNG, pipe installation, and combined subsea cable and small-scale portable power plant (CSP3). We have created an economic model for each method by comparing three primary variables such as, gas transportation cost, power generating cost, and electricity producing cost. Each method is assuming that all investment for the transportation tool (CNG fleet/pipe/subsea cable) is absorbed in the gas transporting cost, while investments in the power plant is absorbed in the power generating cost. Both investments are absorbed using a linear depreciation method. Based on our evaluation, we have concluded that the CSP3 is the most suitable method for the Simenggaris condition as the transportation cost for the CSP3 has the lowest economic cost from the two other methods. In terms of investment, the CSP3 has the highest utility value as it can be relocated close to the gas field within the Simenggaris area in the case that one of the fields production will decline.