Masterproject CiTG CEG 4061 - 09

LNG development, Jakarta, Indonesia

Summary
Liquefied Natural Gas (LNG) as a global commodity
has become increasingly popular worldwide due to
fewer emissions compared to fuels like diesel, LPG
and coal, the potential of LNG as a transitional fuel
towards renewables, its suitability for transport over
large distances and its ability to provide energy
independency (political). The global LNG market is
transitioning from a pull- towards a push-market; with
increased supply from Australia and the United States
and the lack of infrastructure to accommodate
demand. The mobility of LNG poses a solution for
areas where pipeline infrastructure is not viable, such
as archipelago structures with remote and scattered
demand and emerging markets where such
infrastructure is not yet existent. However, to serve
this demand, construction of small scale LNG
infrastructure is required with investments
throughout the entire supply chain, including
transport, storage and regasification facilities. The
drop in LNG prices and technological developments
have opened up the market for small scale LNG, with
potential to double the total demand in the LNG
market.
Vopaks key service consists of providing large-scale
LNG storage, but as the LNG market matures it may
be necessary to explore opportunities in growing and
emerging markets. The upcoming small-scale LNG
market could supply many emerging economies with
growing energy demands and archipel structures and
Website
opens of storage
up new company:opportunities for Vopak.
www.vopak.com
market could supply many emerging economies with
growing energy demands and archipel structures and
opens up new storage opportunities for Vopak.
Storage solutions that are considered include ISO
containers, pressurized bullet tanks, atmospheric flat
bottom tanks and floating solutions for offshore LNG
storage and regasification. The entire LNG supply
chain must generate a competitive price compared to
other fuels, such as diesel and LPG. Therefore,
purchase price and transport costs are taken into
account as well to evaluate the profitability of
coupled small-scale LNG demand in Central Indonesia.
Transport costs is the outcome of a logistic
optimization, as executed in this research. Various
carrier sizes are considered within different
scenarios, namely 7.500, 15.000 and 30.000 m. In
order to connect the international market in the
network, LNG is considered to originate from various
locations, like Singapore, Pengerang and Bontang,
where either liquefaction plants are located or
international LNG storage facilities. In case of small
scale LNG, uncertainties around investment decisions
are large. Flexibility and a shorter production ramp-up
time are favorable in such an environment.

Students:
Roderick Buijs
Jenneke Evers
Tyrtza Hogewoning
Maarten Vrouenraets

Period:
Summer 2016