My Bachelor Thesis Progress FIX PRINT! PDF
My Bachelor Thesis Progress FIX PRINT! PDF
My Bachelor Thesis Progress FIX PRINT! PDF
SUPERVISOR :
A.A.B. Dinariyana D.P. S.T., MES, Ph.D.
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BACHELOR THESIS & COLLOQUIUM – ME 141502
SUPERVISOR :
A.A.B. Dinariyana D.P. S.T., MES, Ph.D.
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SKRIPSI – ME 141502
DOSEN PEMBIMBING :
A.A.B. Dinariyana D.P. S.T., MES, Ph.D.
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VALIDATION SHEET
Prepare by:
MUHAMMAD SATRIO NURRAHMAN
NRP. 0421144100028
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VALIDATION SHEET
Prepare by:
MUHAMMAD SATRIO NURRAHMAN
NRP. 0421144100028
Approved by
Head of Marine Engineering Department FTK-ITS
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VALIDATION SHEET
Prepare by:
MUHAMMAD SATRIO NURRAHMAN
NRP. 0421144100028
Approved by
Representative of Hochschule Wismar in Indonesia
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DECLARATION OF HONOR
If there is plagiarism act in the future, I will fully responsible and receive the penalty
given by ITS according to the regulation applied.
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A STUDY OF LNG DISTRIBUTION DESIGN BY CONSIDERING
TRANSSHIPMENT MODEL FOR EASTERN PART OF INDONESIA
Name : Muhammad Satrio Nurrahman
NRP : 0421144100028
Supervisor 1 : A.A.B. Dinariyana D.P. S.T., MES, Ph.D.
Supervisor 2 : Prof. Dr. Ketut Buda Artana, S.T., M.Sc.
ABSTRACT
Indonesia is one of the largest archipelago country that the usage of sea transportation
is one of the most effective transportation method to distribute energy for power plant.
The presence of electrical energy in Indonesia is still not provided due to the limited
of the facilities and the distribution of the electrical energy sources. LNG supply chain
is needed to distribute LNG to fulfill the demand in the area that have been planned
by PLN for power plants. The LNG carrier can reach the requests of the little islands,
so it turn out to be more compelling choice for the supply chain. This thesis will
design transshipment model scenario of LNG distribution in eastern part of Indonesia
and it will be simulated using discrete-event simulation. There will be some of
scenario that create in Papua and West Papua regions. The purpose of this thesis is to
know the transshipment modelling scenario in discrete-event simulation, to identify
variables that affects modelling of supply chain scenario and to find feasible supply
chain technically. The chosen methods for this thesis are literature review and
collecting data that is done by reviewing on the internet about discrete-event
simulation and the project data. The data is processed by using ARENA DES-
Software which will be known the simulation of some model and scenario that
considered and determined, then will know the feasible scenario and model.
Based on the results of this thesis, scenarios and models that have been designed still
have an inaccuracy when running the simulation to make the results achieved is not
maximal but still exist in some locations in the LNG supply chain that runs out of
LNG as fuel. For the first model in scenario 1, tank was found in Fakfak is empty for
30 days, Jayapura as much as 46 days, and Merauke 19 days. In the second scenario
Fakfak still empty for 30 days, Jayapura as much as 24 days and Merauke 19 days.
The third and fourth scenarios are still the same. The fifth scenario Fakfak and
Merauke have not experienced empty tank but Jayapura experienced for 10 days.
After the sixth to the eighth scenario, all locations do not experience a vacuum tank.
For the second model in the first to fourth scenario, Fakfak, Jayapura, Timika and
Merauke experienced an LNG vacuum, but in scenarios 5 to 8 all tanks did not
experience a daily tank void.
After that, the results of economic study calculations of the model and scenario are
performed and simulated beforehand, among others obtained the route model and the
most feasible scenario is the second model in scenario 7, where the cost value of all
worth US$ 317,735,686. These models and scenarios are the least expensive models
to do so they can be recommended to be the most feasible models to build.
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Keyword: LNG, LNG Carrier, Supply Chain, Transshipment Model, Simulation
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STUDI TENTANG DESAIN DISTRIBUSI LNG DENGAN
MEMPERTIMBANGKAN MODEL TRANSSHIPMENT UNTUK WILAYAH
TIMUR INDONESIA
Nama : Muhammad Satrio Nurrahman
NRP : 0421144100028
Dosen Pembimbing 1 : A.A.B. Dinariyana D.P. S.T., MES, Ph.D.
Dosen Pembimbing 2 : Prof. Dr. Ketut Buda Artana, S.T., M.Sc.
ABSTRAK
Indonesia merupakan negara kepulauan yang terbesar sehingga membuat
penggunaan transportasi laut menjadi metode transportasi yang paling efektif untuk
mendistribusi energi ke pembangkit. Kehadiran energi listrik di Indonesia masih tidak
tersedia dikarenakan fasilitas dan distribusi sumber energi listrik yang terbatas.
Rantai pasok LNG dibutuhkan untuk mendistribusi LNG guna memenuhi kebutuhan
di wilayah yang telah direncanakan oleh PLN sebagai pembangkit. Kapal pengangkut
LNG dapat menggapai permintaan di pulau-pulau kecil, sehingga menjadikan pilihan
yang tepat untuk merancang rantai pasok. Tugas akhir ini akan mendesain model
transshipment scenario mengenai distribusi di wilayah timur Indonesia dan akan
disimulasikan. Akan dirancang beberapa skenario di Papua dan Papua Barat. Tujuan
dari tugas akhir ini untuk mengetahui skenario model transshipment di dalam diskrit
event simulasi, untuk mencari tahu variabel yang memengaruhi model dari skenario
rantai pasok dan mencari rantai pasok yang layak secara teknis. Metode yang
digunakan untuk tugas akhir ini adalah dengan studi literature dan mengumpulkan
data yang dapat diatasi dengan mengulang dari internet tentang simulasi diskrit event
dan data proyek. Data diolah dengan menggunakan software ARENA yang akan
mengetahui simulasi beberapa model dan skenario yang sudah ditentukan, lalu akan
terlihat skenario dan model yang layak.
Berdasarkan hasil tugas akhir ini, skenario dan model yang telah dirancang masih
memiliki ketidaktepatan ketika menjalankan simulasi sehingga membuat hasil yang
dicapai tidak maksimal melainkan masih terdapatnya di beberapa lokasi pada rantai
pasok LNG yang kehabisan LNG sebagai bahan bakarnya. Untuk model pertama di
skenario 1 didapati tangki pada Fakfak mengalami kondisi 0 sebanyak 30 hari,
Jayapura sebanyak 46 hari, dan Merauke 19 hari. Pada skenario kedua Fakfak masih
30 hari, Jayapura sebanyak 24 hari dan Merauke 19 hari. Skenario ketiga dan keempat
kondisi masih sama. Skenario kelima Fakfak dan Merauke sudah tidak mengalami
kosong tangki namun Jayapura mengalami selama 10 hari. Setelah itu skenario
keenam hingga ke delapan, diseluruh lokasi tidak mengalami kekosongan tangki.
Untuk model kedua di skenario pertama hingga keempat, Fakfak, Jayapura, Timika
dan Merauke mengalami kekosongan LNG, namun di skenario 5 hingga 8 semua
tangki tidak mengalami kekosongan tangki seharipun.
Setelah itu didapatkan hasil perhitungan studi ekonomis dari model dan skenario yang
dilakukan dan disimulasikan sebelumnya, antara lain didapatkan model rute dan
skenario yang paling layak adalah model kedua pada skenario 7, dimana nilai biaya
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semua senilai US$ 317,735,686. Model dan skenario ini adalah model yang paling
murah untuk dilakukan sehingga dapat direkomendasikan menjadi model yang paling
layak untuk dibangun.
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PREFACE
Praise to Allah SWT who has given grace and hidayah to the author, so the author
can finish this thesis with the title “A Study of LNG Distribution Design by
Considering Transshipment Model for Eastern Part of Indonesia” on time in order to
comply the requirement of obtaining a Bachelor Degree Engineering on Department
of Marine Engineering, Faculty of Marine Technology, Sepuluh Nopember Institute
of Technology.
The author realizes that this writing can’t be solved without the support of various
parties both morally and materially. Therefore, the authors would like to express their
gratitude to all those who have helped in the preparation of this bachelor thesis
especially to:
1. Both parents, an honored my father Dony Noerwahjono, my beloved mother
Yuniarti Nugrohorini, my lovely brother and sister Muhammad Nur Pratama
and Sabrina Nuraulia Putri who have given moral and material support to the
author.
2. Mr. Dr. Eng. Muhammad Badrus Zaman., ST., MT. as Head of Marine
Engineering Department, Faculty of Marine Technology ITS.
3. Mr. Indra Ranu Kusuma, ST., M.Sc. as a lecture advisor since first semester
until eighth semester who giving a lot advice and help for the author.
4. Mr. A.A.B. Dinariyana D.P., S.T., MES, Ph.D. and Mr. Prof. Dr. Ketut Buda
Artana, S.T., M.Sc. as supervisor in this research who giving a lot of times to
guide and teach the author along the process of writing this bachelor thesis.
5. Mr. Dr. Dhimas Widhi Handani, S.T., M.Sc. and Mr. Raja Oloan Saut
Gurning, S.T., M.Sc., Ph.D. as the lecturer in RAMS Laboratory.
6. Deborah Krisnensia Candra as the author supporting system from the
beginning of bachelor thesis until the end.
7. Wiwit Marta for guiding and teaching the author to use ARENA Software.
8. Nyimas Safira Amalia S.T., B.Eng. who have given moral support and share
her knowledges to the author.
9. Aditya Rizal Suswiwantoro for accompanying to done the bachelor thesis
along the process of writing bachelor thesis.
10. All member of Reliability, Availability, Management and Safety (RAMS)
Laboratory for the support and knowledges.
11. All of friends in Double Degree Marine Engineering ITS-Hochschule
Wismar batch 2014 for all the support, memories and knowledges.
12. All of friends in MERCUSUAR’14 for the support, memories and
knowledges from first semester until eighth semester.
13. All civitas academic in Department of Marine Engineering, Faculty of
Marine Technology, Sepuluh Nopember Institute of Technology who giving
a lot of knowledge and great times to the author.
14. Great amounts of friends that can’t be mentioned, for their support, help and
knowledges for this thesis.
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The author realizes that this bachelor thesis remains far away from the perfect form.
Therefore, every construction suggestion and idea from all parties are highly expected
by author for this bachelor thesis correction and improvement in the future.
Finally, may Allah SWT bestow His grace, Hidayah, Contentment and blessing to all
of us. Hopefully this bachelor thesis can have an advantageous for all of us especially
for the readers.
Author
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TABLE OF CONTENTS
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3.2. Definition of Methodology Flow Chart ................................................... 22
3.2.1. Determining Problem ................................................................... 22
3.2.2. Literature Study............................................................................ 22
3.2.3. Collecting Data ............................................................................ 22
3.2.4. Demand and Supply Data Analyzing ........................................... 22
3.2.5. Generate Route Model ................................................................. 22
3.2.6. Consider Scenario ........................................................................ 23
3.2.7. Discrete-Event Simulation ........................................................... 23
3.2.8. Conclusion & Suggestion............................................................. 23
CHAPTER IV .......................................................................................................... 24
4.1. Data Analyzing ........................................................................................ 24
4.1.1. Power Plants Identification .......................................................... 24
4.1.2. Fleet Identification ....................................................................... 27
4.2. Generate Distance Matrix ........................................................................ 28
4.3. Simulation LNG Distribution................................................................... 30
4.3.1. Voyage Cost ................................................................................. 31
4.3.2. Receiving Terminal Investation Cost ........................................... 33
4.3.3. LNG Distribution Route Simulation ............................................ 34
4.4. Economic Study ....................................................................................... 40
4.4.1. Capital Expenditure (CAPEX) ..................................................... 40
4.4.2. Operational Expenditure (OPEX) ................................................ 42
4.4.3. Total Expenditure......................................................................... 43
CHAPTER V ........................................................................................................... 45
5.1. Conclusion ............................................................................................... 45
5.2. Suggestion ................................................................................................ 45
REFERENCES ........................................................................................................ 46
ATTACHMENT 1 ................................................................................................... 47
ATTACHMENT 2 ................................................................................................... 49
ATTACHMENT 3 ................................................................................................... 55
AUTHOR BIOGRAPHY......................................................................................... 59
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LIST OF TABLES
Table 4.1 Power Plants Gas Fueled in Eastern Part of Indonesia ............................ 24
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LIST OF FIGURES
Figure 2.1 LNG Supply Chain (Source: Ketut Buda Artana, 2006) .......................... 6
Figure 2.2 Indonesia Natural Gas Reserves (Source: Ditjen Migas, 2016) ............... 6
Figure 2.3 Small LNG Vessel (Source: Keppel Offshore & Marine Technology
Centre) ..................................................................................................... 8
Figure 2.4 LNG Shuttle / Bunker Barge (Source: Keppel Offshore & Marine
Technology Centre) ................................................................................. 9
Figure 2.7 Electricity Development Planning Map at Sorong System (Source: RUPTL
PLN 2017-2026) .................................................................................... 13
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CHAPTER I
INTRODUCTION
1.1. Background
Indonesia is an archipelago or islands country which is consists of 17.504
islands scattered in an area of 1.904.569 km2. The islands condition is still
complicated in developing the aspects of technology, economy and etc. Many islands
in Indonesia are not well developed especially in Central Indonesia, even some
islands are well developed. All Indonesia’s islands and citizen deserved to be well
developed for their hometown.
Based on the Handbook of Energy and Economic Statistics of Indonesia issued
by Energy and Mineral Resources Ministry, gas fields located in Indonesia have
considerable potential and already proven the existence of some large gas fields exist
in Indonesia.
Table 1.1 Natural Gas Reserves (per January) Database
Table 1.1 shows that gas fields owned by Indonesia are large enough to boost
the existing economy in the country, can utilize natural gas as a power plant. PT. PLN
has successfully utilized natural gas in the form of LNG as a source for power plants
in several islands in Indonesia. Based on PLN Statistics and Electricity Statistics from
Directorate General of Electricity, the last 5 years until 2016 power plants using
natural gas in some areas have been built with installed capacity in the amount of;
4343.82 MW, 4389.08 MW, 4310.50 MW, 4310.50 MW and 4420.50 MW. Thus,
PT. PLN will continue to develop and build power plants in various regions of
Indonesia using energy from LNG.
Economic conditions in the region of Papua in the last five years is lower than
the previous average of 4.9% per year while the West Papua region grew better than
the previous average of 10.45% per year. This economic condition will affect the high
consumption of electricity in these two provinces. Thus, the electricity needs of these
two provinces will met by PLN by adding power plants in these two provinces. This
is shown in tables 1.2 and 1.3 below which describes the amount of electricity demand
by comparison of the existing economic growth in the two provinces.
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Table 1.2 Electricity Power Projection in Papua
Based on the electricity power projection needs from PT. PLN in 2017, the
peak load on Papua Province requires 499 MW of electricity and the province of West
Papua requires 188 MW of electricity. With the large demand difference between the
current production capacity, it is necessary to developing the power plants to meet
those needs. PLN's plan to build a gas-fired power plant is based on Minister of
Energy and Mineral Resources Regulation no. 37 of 2015 on the provisions and
procedures for determining the allocation, utilization and natural gas price. The
allocation of utilization of natural gas as fuel for power generation gets priority
number five after: utilization for transportation, household and small customer;
increased national oil and gas production; fertilizer industry; and industry made from
natural gas. The government has set a gas allocation produced by Tangguh LNG Train
3 about 75% of the 3.8 Million Ton Per Annum (MTPA) to PLN to operate PLTGU
which is a 35,000 MW electricity generation program in Indonesia.
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Based on the allocation of gas fuel and the planned power plant construction,
the government should also prepare the supporting facilities and the concept of
natural gas distribution from the Tangguh LNG Refinery to the power plant in Papua.
A scenario of LNG supply chain is necessary since government had committed to
allocate local production of natural gas to supply power plants in Indonesia.
1.2. Statement of Problems
Based on the description above the statement of problem of this thesis are:
1. What are possible scenarios (route, receiving terminal capacity, fleet
size) to distribute LNG for power plants in Papua and Papua Barat?
2. How to simulate the model and scenario?
3. What is the feasible LNG distribution model and scenario technically and
economically?
1.3. Constraints
The constraints of this thesis are;
1. This thesis is focusing on the LNG supply distribution from Tangguh
LNG Storage Papua area power plants.
2. Tangguh LNG Storage have port facilities which can provide all type of
LNG carrier.
3. All power plants analyzed based from Rencana Usaha Penyediaan
Tenaga Listrik (RUPTL) PLN 2017-2025 and also for the gas power
plants (PLTG/MG).
4. Supply LNG only for the certain power plant aimed.
1.4. Research Objectives
The objectives of this thesis are;
1. To determine a transshipment modelling and some scenarios of LNG
distribution.
2. To simulate the model and scenarios using Discrete-Event Simulation
method.
3. To find feasible LNG distribution technically and economically.
1.5. Research Benefits
Benefits that can be collected from this thesis writing task are:
1. Deliver solution of LNG supply chain for power plants in eastern
Indonesia.
2. Understand the facilities that should be prepared for LNG distribution.
3. Assure efficiency and reliability of LNG supply for power plants in
Papua and Papua Barat.
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CHAPTER II
LITERATURE REVIEW
2.1. LNG Basic Concept
Liquefied Natural Gas (LNG) is natural gas that predominantly is methane,
CH4 with some mixture of ethane C2H6 that has been converted into liquid form for
ease and safety of non-pressurized storage or transport. The natural gas condensed
into liquid at -162oC (-260oF) at almost atmospheric pressure. The liquefaction
process involves removal of certain components such as dust, acid, gases, helium,
water and hydrocarbons which could cause difficulty downstream and processed
through desulfurization, dehydration and carbon dioxide cleaning. All this process
will make the gas become odorless, colorless, non-toxic and non-corrosive.
This liquid form makes it possible in transporting the gas at big amount of
gas by LNG carrier vessel. It takes up about 1/600 volume of natural gas in the
gaseous state at standard conditions for temperature and pressure. It will make the
long distance transport destination of gas more economics while there is no pipeline.
When transporting the natural gas with pipeline is not possible or not economical, it
can be transported by LNG carrier, where many of tank type for LNG are membrane
or “moss”.
The energy density that produces by LNG is comparable with petroleum fuel
and diesel fuel. LNG is a clean energy, 1 KWH gas energy of LNG contain 446 gram
CO2, also the content of nitrogen oxide is around 20-37% and carbon dioxide 57%
that less than coal. Besides that, it because the flash point of LNG is higher than
petroleum fuel. These characteristic makes LNG become the safe energy. LNG have
higher calories (12000 kcal/kg) than other types of fuel. This gas type produces less
pollution, but the production cost is relatively high and requirement for storage that
use expensive cryogenic tank for commercial application. Cryogenic is a liquid form
from elements or molecule that melting under 100oF temperature. LNG is originated
from natural gas that have a mixture from some different gases so that don’t have
specific flash point. The flash point is depending on the source of usage gas and the
process to liquefied the gas form. The highest flash point for LNG is around 24 MJ/L
at -164oC temperature and the lowest point is 21 MJ/L (Oscarino, 2010)
Exploration activities are started on developing the onshore and offshore area
in some places. Using seismic technology with hydrocarbon high probability,
identification activities are done in the target areas. After done the environmental
impact assessment (AMDAL) or environmental management and monitoring studies
(UKL/UPL), working area manager could do well drilling test. LNG terminal have
facilities to transporting LNG from tanker to LNG storage tank on the land,
transferring to high pressure booster pumps, evaporating the LNG to produce high
pressure natural gas. LNG terminal designed to receive LNG from some LNG
production facilities (Oscarino, 2010)
There is some benefit in utilize natural gas as power plant fuel, include:
The usage in power plant: natural gas can be used in Combine Cycle
Gas Turbine (CCGT) which can make this facility in having higher
thermal efficiency than coal or oil for power plant with same capacity
for the power plant.
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Environment advantage: natural gas is one of the cleanest source of
energy and have more efficient form than other energies, almost
produce zero particular and less content of NOx and CO2 than other
fossil fuels.
LNG have less fire risk than other types of hydrocarbon, LNG leaks is
easy to detect because of the cloud humidity is visible, also fire rate of
LNG is slower than human movement.
2.2. LNG Supply Chain
Supply chain is a series of relationships between companies or activities that
carry out the supply of goods or services from the place of origin to the buyer or
customer. Supply chain concerns the ongoing relationship of goods, money and
information. Goods generally flow from upstream to downstream, money flows from
downstream to upstream, while information flows from upstream to downstream and
downstream to upstream. When viewed horizontally, there are five main components
or actors in the supply chain, i.e. suppliers, manufacturers, distributors, retailers and
customers. Vertically, there are several main components of supply chain, namely
buyer, transporter, warehouse, seller and etc. Supply chain management is the
planning, design and controlling the flow of information and goods throughout the
supply chain that aims to meet the requirements of the customer, efficiently for the
present and the future (Schroeder, 2003).
Supply Chain is a travel chain of natural gas taken up to the end user. The
initial process of the LNG supply chain involves transporting natural gas from its
production fields through pipelines to the liquefaction plant. Prior to the liquefaction
of the gas, treatment was first undertaken to remove contaminants to substances such
as carbon dioxide, water and sulfur to avoid them freezing and eventually breaking
down when the gas was cooled to -162°C. Liquefaction plant is similar to a large
refrigerator equipped with compressor, condenser, expansion valve and pressure
evaporator. LNG generated through the liquefaction plant is routed through pipes to
storage tanks / storage tanks. Pipelines and storage tanks must be isolated to maintain
low temperatures so that both items are specially designed to accommodate cryogenic
liquids. The LNG is then extracted from a storage tank for loaded into the LNG carrier
to the receiving terminal. Before reaching the user, the LNG is first converted into a
gas phase back in the regasification plant. Here's an overview of the LNG supply
chain from the gas field to the last user.
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Figure 2.1 LNG Supply Chain (Source: Ketut Buda Artana, 2006)
Figure 2.2 Indonesia Natural Gas Reserves (Source: Ditjen Migas, 2016)
Gas reservoirs have been divided into three groups; dry gas, wet gas
and retrograde-condensate gas. A dry-gas reservoir is defined as producing a
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single composition of gas that is constant in the reservoir, wellbore, and lease-
separation equipment throughout the life of a field. Some liquids may be
recovered by processing in a gas plant. A wet-gas reservoir is defined as
producing a single gas composition to the producing well perforations
throughout its life. Condensate will form either while flowing to the surface or
in lease-separation equipment. A retrograde-condensate gas reservoir initially
contains a single-phase fluid, which changes to two phases (condensate and
gas) in the reservoir when the reservoir pressure decreases. Additional
condensate forms with changes in pressure and temperature in the tubing and
during lease separation. From a reservoir standpoint, dry and wet gas can be
treated similarly in terms of producing characteristics, pressure behavior, and
recovery potential. Wellbore hydraulics may be different. Studies of
retrograde-condensate gas reservoirs must consider changes in condensate
yield as reservoir pressure declines, the potential for decreased well
deliverability as liquid saturations increase near the wellbore, and the effects
of two-phase flow on wellbore hydraulics.
2.2.2. LNG Carrier
LNG Carrier is a tank ship designed for transporting liquefied natural
gas (LNG). As the LNG market grows rapidly, the fleet of LNG carriers
continues to experience tremendous growth. The majority of new ships under
construction are in the size of 120,000 – 140,000 m3 (4,200,000 – 4,900,000
cu ft), but there are orders for ships with capacity up to 260,000 m3 (9,200,000
cu ft). As of 2016, there were 451 LNG ships engaged in the deep sea
movement of LNG. In the case of small scale LNG carriers (LNG carriers
below 40,000 m3 (1,400,000 cu ft)), the optimal size of a ship is determined by
the project for which it is built, taking into consideration volume, destination
and vessel characteristics.
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Figure 2.3 Small LNG Vessel (Source: Keppel Offshore & Marine Technology Centre)
Also while there are challenges, there will be solutions for small-
scale LNG transportation, such as:
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1. Based on the propulsion system:
a. Self-propelled LNG carrier
b. Non-propelled LNG carrier
2. Based on LNG containment system:
a. ‘Type-C’ LNG tanks
b. ‘Membrane Type’ LNG tank
3. Based on the draft limitation of the waterways:
a. Regular draft LNG carriers
b. Shallow draft LNG carriers
Figure 2.4 LNG Shuttle / Bunker Barge (Source: Keppel Offshore & Marine Technology Centre)
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will remain constant if the pressure is kept constant by allowing the boil off
gas to escape from the tank. This is known as auto-refrigeration.
The world's largest above-ground tank (Delivered in 2000) is the 180
million liters full containment type for Osaka Gas Co., Ltd. (2) The world's
largest tank (Delivered in 2001) is the 200 million liters Membrane type for
Toho Gas Co., Ltd.
2.2.5. Receiving Terminal
Liquefied natural gas terminal is a structure for liquefied natural gas to
store. It can comprise special tanks, ships or even building structures. Port
infrastructures and pipelines are also a part of LNG terminals. Liquefied
natural gas is the form used to transport natural gas over long distances, often
by sea. In most cases, LNG terminals are purpose-built ports used exclusively
to export or import LNG. The function of an LNG import terminal is to receive
LNG cargos, store LNG, and re-vaporize the LNG for sale as gas. Odorant
injection may be required if gas is to be exported through a transmission grid.
There are two main systems used for LNG vaporization: submerged
combustion vaporizers and open-rack vaporizers (ORVs). In submerged
combustion vaporizers, the LNG passes through tubes immersed in a water
bath, which is heated by submerged burners. In ORVs, water runs down the
outside of the vaporizer tubes (usually vertical) as a film. River water or
seawater is normally used.
2.3. Power Plant in Papua
Papua region is divided into West Papua Province and Papua Province with 40
districts, a total area of 424,500 km2 and 16 million inhabitants. In section will be
further explained on the condition of electricity in Papua province and West Papua
based on the Rencana Usaha Penyediaan Tenaga Listrik (RUPTL) 2017-2026.
2.3.1. Papua Province
Papua Province consists of 36 districts and 1 municipality with the
distribution location of the capital far between each other. The power supply
uses a 20 kV system and still isolated, partly using a low voltage 220 Volt
network directly to the load. In addition, there are still some district capitals
that have not received electricity from PLN. The ratio of the number of PLN
electricity household customers in 2015 to the province of Papua is around
45.93%, still very low amount.
Papua province is currently supplied by several power plants whose
total peak load reaches 145.9 MW. PLN through RUPTL 2017-2026
projected that electricity demand will increase by 8.4% annually or reach 499
MW in 2026 (see table).
The development plans of power plant facilities, transmission and
distribution networks in Papua Province are carried out with due regard to the
needs and potential of the local primary energy and population distribution.
In order to meet the needs of the load in period 2017-2026, planned an
addition of power plant capacity of about 755 MW, the details as shown in
table 2.1. In addition to the construction of new power plants, the PLN
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RUPTL also mentions the planning infrastructure supporting electrical
energy distribution that can be seen in Figure 2. The picture describes the
development plan of interconnection system of 70 kV and 150 kV Jayapura.
Figure 2.5 Development Planning Map Interconnection System 70 kV and 150 kV Jayapura (Source:
RUPTL PLN 2017-2026)
Figure 2.6 Development Planning Map Interconnection System 150 kV Wamena (Source: RUPTL PLN
2017-2026)
11
Table 2.1 Power Plant Development Planning List
12
Figure 2.7 Electricity Development Planning Map at Sorong System (Source: RUPTL PLN 2017-2026)
Figure 2.8 Electricity Development Planning Map at Manokwari System (Source: RUPTL PLN 2017-2026)
13
Table 2.2 Power Plant Development Planning List
2.4. System
System is defined as a collection of objects incorporated in a regular interaction
and interdependency. Several components that establish a system are:
Entity:
Entities or object studies in the system are object items that are
processed through systems such as products, customers, and
documents. Entities can have unique characteristics such as cost, size,
priority, quality or condition. Entities can be grouped into human or
animal (customer, patient, etc.), non-human (products, components,
documents, garbage, etc.) and intangible (phone calls, electronic mail,
etc.).
Attribute:
Attribute is a properties or characteristics of entities that specific
Activities:
Activities can be interpreted as activities / tasks performed entities
within a certain period of time, can also be viewed as tasks performed
in the system (either directly or indirectly) in processing entities.
Examples of activities are serving customers, cutting components,
repairing an equipment, etc. Activity takes time and requires a
resource. Activities may be classified as entity-processing activities
(check-in, product inspection, fabrication, etc.), entity and resource
displacements (forklift displacements, transit in conveyor belts etc),
and resource adjustment / repair / maintenance (machine setup, repair
engine, etc.).
State:
State is defined as variable that give a description of status on system
in certain relative time against the purpose.
14
Event:
Event is an event (instant) that can change the status of the system
(variable state). Endogenous event is an activity or event that occurs in
the system, for example the incidence of completion of a customer
service. Exogenous events are activities or events outside the system
(environment) that affect the system, e.g. the arrival of a customer into
the bank.
Resource:
Resources is an object or equipment used in conducting an activity.
Resources provide support facilities, equipment, and labor to complete
a job. Resources typically have characteristics of capacity, speed, cycle
time, and reliability. Resources can be grouped as human or animate
(operator, doctor, repair officer, etc.), inanimate (equipment,
equipment, workspace, etc.), and intangible (information, electrical
power, etc.). Resources can also be classified as dedicated or shared
resources, permanent or consumable, and mobile or stationary.
Delay:
Delay is a duration of time unspecified indefinite length, which is not
known until it ends.
2.5. Transshipment Model
Transshipment is a combination between transportation and deconsolidation.
Transportation is done during all the stages, from the source to an intermediate
storage location through to a final destination. Either the same vessel is used to carry
it to its destined locations.
The transshipment problem is a transportation problem in which each origin
and destination can act as an intermediate point through which goods can be
temporarily received and then transshipped to other points or to the final destination.
(Gass, 1969, 232)
Transshipment or Transhipment is the shipment of goods or containers to an
intermediate destination, and then from there to yet another destination. This logistics
operation could be also named as re-exporting. Transshipment has become an integral
part of the logistic strategy of many shipping companies. Indeed, from its origin to its
final destination, any given cargo might have transshipped three or four times.
Transshipment can be viewed as routing goods in such a way that would decrease
shipping costs, take advantage of economies of scale and improve the range of
services or routes offered to customers. In particular, transshipment services provide
shippers with additional routing options (especially towards final destinations at
smaller ports) and reduced transit times. Earlier, before the development of large
oceangoing container ships, transshipment was simply an induced operation when a
small part of the cargo on the board of a vessel had to be unloaded in an intermediary
port due to different destination of the main cargo on the board.
The level of transshipment through a given port or a country is in general the
result of strategic decisions made by the shipping companies themselves. In order to
satisfy the demands of carriers, transshipment ports need to satisfy a number of
attributes:
15
Availability of an array of high-frequency feeder services, connecting the hub
with its network of feeder ports
Convenient geographical location with access to major trade routes and other
transshipment centers
Efficient, highly productive and competitively priced port and terminal
services
Availability of modern high-tech infrastructure (e.g., berths, gantry cranes,
container storage space) as well as equipment that allows for a quick
turnaround time of large vessels
2.6. Simulation
Simulation is the imitation of the operation of a real-world process or system
over time. The act of simulating something first requires that a model be developed;
this model represents the key characteristics, behaviors and functions of the selected
physical or abstract system or process. The model represents the system itself,
whereas the simulation represents the operation of the system over time.
Simulation is used in many contexts, such as simulation of technology for
performance optimization, safety engineering, testing, training, education, and video
games. Often, computer experiments are used to study simulation models. Simulation
is also used with scientific modelling of natural systems or human systems to gain
insight into their functioning, as in economics. Simulation can be used to show the
eventual real effects of alternative conditions and courses of action. Simulation is also
used when the real system cannot be engaged, because it may not be accessible, or it
may be dangerous or unacceptable to engage, or it is being designed but not yet built,
or it may simply not exist.
There are three type of simulation; discrete event simulation, static and
dynamic, and Monte Carlo. They were defined as:
1. Monte Carlo Simulations:
This type of simulation techniques is a simulation that sampling from a
particular probability distribution involves the use of random numbers.
Monte Carlo simulation is sometimes called Stochastic Simulation. This
technique considered using random or pseudo random numbers. It is
important to know what random numbers are. The example is when
tossing a coin, if coin is unbiased, probability of coming head is 0.5. This
simulation technique does not play time as substantial role, the
observations as a rule are independent and it is possible to express the
response as a rather simple function of the stochastic input variates.
2. Static and Dynamic Simulations:
Static model of simulation doesn’t consider time, so the model is
comparable to a snapshot or a map. A simulation of a system at one
specific time, or a simulation in which time is not a relevant parameter for
example. The example a model of the weight of a salamander as being
proportional to the cube of its length has variables for weight and length,
but not for time. Dynamic model of simulation is changes by the time. A
simulation representing a system evolving over time. The example is the
16
number of salamanders in an area undergoing development changes with
time and model of such a population is dynamic.
3. Discrete-event Simulation:
This simulation is a models the operation of a system in time. Each event
occurs at a particular instant in time and marks a change of state in the
system. Between consecutive events, no change in the system is assumed
to occur; thus the simulation can directly jump in time from one event to
the next. The example of this simulation is the fluid flow inside the pipe.
To solve problem about supply chain, several methods is developed. Discrete
event simulation and system dynamics will give as an understanding behavior of
systems over time and compare their performance under different conditions.
Discrete event simulation is mainly used to study and evaluate the detailed operations
of a supply chain in high level of accuracy. Discrete event simulation is more often
modelling system performance, inventory planning/management, production
planning and scheduling. While system dynamics commonly used to model issues
regarding information sharing, bull-whip effect and inventory planning/management.
2.7. ARENA DES-Software
ARENA is one of some software that can be used and have a specialty in
simulation including discrete-event simulation that usually using this software to
create a computer simulation of a system. Computer simulation is refer to methods
for studying a wide variety of models of real-world systems by numerical evaluation
using software designed to imitate the system’s operations or characteristics.
Simulation is the process of designing and creating a computerized model of a real or
proposed system for the purpose of conducting numerical experiments to give us a
better understanding of the behavior of that system for a given set of conditions.
Simulation models are start by create a system that will be simulated e.g. a
simple processing system. The simulation usually involves waiting lines or queue as
building blocks. Then after the system is create, the next step is deciding and
collecting the output performance measures. The output performance measures are:
The Total Production is number of parts that complete their service at
the drill press and leave.
The Average Waiting Time in Queue is a time in queue records that
only the time a part is waiting in the queue and not the time it spends
being served at the drill press. The average algorithm is:
∑𝑁
𝑖=𝑙 𝑊𝑄𝑖
𝑁
(2.1)
17
The Time Average Number of Parts Waiting in the queue is a weighted
average of the possible queue lengths weighted by the proportion of
time during the run that the queue was at that length. In integral
calculus terms, this is:
∫ 𝑄(𝑡)𝑑𝑡
𝑙𝑒𝑛𝑔𝑡ℎ 𝑜𝑓 𝑟𝑢𝑛
(2.2)
∫ 𝐵(𝑡)𝑑𝑡
𝑙𝑒𝑛𝑔𝑡ℎ 𝑜𝑓 𝑟𝑢𝑛
(2.3)
18
gives the probability that X will take on each of the possible values. Here
is the function:
This just says to add up the probabilities of those x’s that are at least a but
(strictly) less than b.
Just as data sets have a “center” measured by the average of the data,
random variables have a “center” in a certain sense. The Expected Value
of the discrete random variable X is defined as
19
2.8. Economic Study
Economic Study can be defined as marginal analysis where the analysis will
examine the consequences of adding to or subtracting from the current state of affairs.
In this research the economic studies are conducted to assess the investments that will
be run. The determination of investments only calculate the capital expenditure and
operating expenses of the transshipment model in eastern part of Indonesia.
Capital expenditure is the total expenditure that incurred when a business
acquires assets that could be beneficial beyond the current tax year. Brand new
equipment or building is the example of capital expenditure that should be calculated
because it became an asset for instances. However, upgrade an existing asset could
be included in the capital expenditure because it will boost the value of assets for the
current tax year.
Operation expenses or operating expenditure consists of those expenses that a
business incurs to run smoothly every single day. These expenditure is used to help
the process of business and turning its inventory into an end product. Hence,
depreciation of fixed assets that are used in the production process is considered as
operating expenditure.
20
CHAPTER III
METHODOLOGY
3.1. Methodology Flow Chart
21
3.2. Definition of Methodology Flow Chart
3.2.1. Determining Problem
This stage is an early stage to construct the thesis. In this stage, questions
and problems are being prepared specifically in order to determine the
specific objectives of this thesis. The content of the thesis is to overcome
the statement of the problems mentioned earlier and it will be done by
collect some information about the problems. Therefore, the purpose of
this thesis can be understood in this stage.
3.2.2. Literature Study
After the problems is raised, the next step is literature study with the goal
to explaining the review, give summary of the basic theory of this
research and give information related to this research. Since this thesis
is an implementation of some theories to reach a goal, various literature
of a topic is required to construct into one project. The study of literature
is done by reading papers, journals, thesis, media and literature books
that relates and able to support this thesis.
3.2.3. Collecting Data
After literature study has been done, collecting data is being performed.
A specific data as required in this thesis are being gathered in this stage,
these are:
1. Type, Capacity and Location of power plants
2. Size, speed, fuel consumption and capacity of carrier
3. Geography of Papua and Papua Barat
4. Location, facility and characteristic of LNG source
22
3.2.6. Considering Scenario
In this step, after have the model of the transshipment for the LNG
distribution in Papua and West Papua region, scenario will be needed to
make some possibilities for the distribution. The determination of some
scenario for each distribution model will consider the variation of
receiving terminal tank capacity, fleet combination for each route and
the level of inventory for each receiving terminal tank for signal to
transport.
23
CHAPTER IV
DATA ANALYZING AND DISCRETE-EVENT SIMULATION
24
Table 4.1 Power Plants Gas Fueled in Eastern Part of Indonesia
The table above shown all power plants in Papua and West Papua region
to proceed the LNG distribution scheme. The least capacity demand is at 5 MW
in Sarmi power plant and the most capacity demand is at 100 MW in several
power plants such as; Jayapura 2 & 3 and Sorong 2. As explained in chapter 2
that government allocated LNG to produced domestic power plants and in this
occasion the source of LNG is supplied from Tangguh LNG Plant.
To analyzing the LNG demand in this thesis is furthermore conducted
by counting fuel consumption. To simplify the calculation, several assumption
is applied to estimate natural gas needed by power plants, there are:
1. Power plants consume 0.143 MMSCFD (Metric Million Standard
Cubic Feet per Day) natural gas for every 1 MW power rate.
2. 1 MMSCFD is equal to 46 m3 LNG.
3. 1 MMSCFD is equal to 1000 MMBTU (Metric Million British
Thermal Unit).
All of the power plants that analyzed will determined for the receiving
terminal location. Power plants which located in the same region will served by
one receiving terminal and known in this case that there is no receiving terminal
which only served one power plant. Subsequently calculation of LNG
consumption is the accumulation of LNG consumption at each power plants that
served by the receiving terminal.
25
Table 4.2 LNG Demand Calculation
The table above shown that the total capacity of power plant in Papua
and West Papua Region is 970 MW are converted into LNG consumption for
daily requirement is around 6,374.3 m3 and for a year operation will required
around 2,326,614.3 m3 LNG to supply the power plants in this area. This amount
of LNG is not automatically considered as amount that will transported per round
trip, since the total round trip time of vessel that serves each power plant will
affect the total number of LNG to be transported and the path is affecting as well.
Later these numbers of gas and LNG amount will be considered to determine the
possible scenario of distribution, which demands of power is one of
consideration.
26
Figure 4.1 Receiving Terminal Location
27
3. Pump Rate
Pump rate are useful for the unloading process from ship cargo hold
to receiving terminal. The process is done by a pump installed
onboard. Pump capacity will affect unloading time and the roundtrip
time as well.
4. Daily Fuel Consumption
Fuel consumption will be considered as well because medium/small
LNG carrier is driven by internal combustion engine as prime mover
and required fuel which are either HFO or MDO. Fuel consumption
is a variable that affect the transportation cost in this research.
5. Charter Rate
Charter rate is considerably important variable in transportation
cost. This research is determined all scenario charter ship number of
charter rate of ship is mandatory.
The detail of ship particular is shown on table 4.3 below as refer to Ario
(2017) research and another source.
Table 4.3 Ship Particular
28
Table 4.4 Matrix Distance
Annotations:
X1 : Biak
X2 : Bintuni
X3 : Fak-fak
X4 : Jayapura
X5 : Kaimana
X6 : Manokwari
X7 : Merauke
X8 : Nabire
X9 : Raja Ampat
X10 : Sarmi
X11 : Serui
X12 : Sorong
X13 : Timika
X14 : Tangguh
29
4.3. Simulation LNG Distribution
The simulation for this modelling is simulated using DES Software
(ARENA). The function of this software is to simulate the logical process of LNG
distribution based on generating route and process. Inside the simulation process there
are some variable that will be used for simulating such as LNG demand variable,
transportation process variable and cost variable. This three kind of variable, will be
the main variable in simulating the LNG distribution to the power plants in Papua and
West Papua provinces. The LNG demand variable and transportation process is used
to calculate and generating route, then cost variable just to calculate the investation
cost and operation cost for the LNG distribution model that has been made. For
example, is calculating the voyage cost, that should be known the round trip sail
duration, fuel consumption and fuel rate. Round trip sail duration can be collect from
the calculation of the distance between supply to transshipment point or
transshipment point to each receiving terminal, vessel service speed and also vessel
unloading duration.
To make the LNG distribution, the main variable for power plants are the
LNG refinery, LNG vessel also the power plant itself. LNG refinery is the supply unit
that provide LNG to be distributed and then will be used as the fuel for the power
plants. LNG vessel is the transportation unit, to transport LNG from the supply unit
and will distribute to each power plant by receiving terminal to collect the LNG.
Meanwhile the power plant will become the demand unit that need LNG for their fuel
to produce electricity.
These main variable should be identified so can earn to calculate the
transportation cost. LNG refinery data must be identified to calculate the distance
between LNG refinery with each receiving terminal. LNG refinery production
capacity is needed to know the production is fulfilled the demand from all power
plant that will be served. LNG vessel data that needed to be identified are tank
capacity, vessel speed, pump rate in the vessel, fuel consumption and vessel charter
rate. The data of vessels already explained in the last chapter. Demand power plant
data that needed to identified are the location and the power capacity from the power
plant. Power plant location can be used to help consider the location of receiving
terminal and power capacity of power plant is used to help consider the demand of
LNG every day.
From the main variable, identify the data are needed and connected so can
earn the derived variables that is transportation economy cost. Derived variables that
can earn among others distance between LNG refinery with receiving terminal,
possibility route, round trip sail duration, fuel consumption, voyage cost and charter
rate of vessel. The distance of LNG refinery and receiving terminal can be collect
after consider the receiving terminal and refinery location. For the possibility route
are considered based on the expert judgement which means generating route by the
logical way of thinking. Round trip sail duration can earn from the distance between
refinery and receiving terminal, vessel speed and also the duration while loading
unloading activities. Fuel consumption cost is calculated from the fuel daily
30
consumption of fuel and round trip duration. Voyage cost can be earned from
port cost charge and fuel consumption cost.
31
Table 4.5 Round Trip Sail Duration Model 1 Calculation
The table above is shown the sail duration time for the round trip in each
route for the first model.
32
Table 4.6 Round Trip Sail Duration Model 2 Calculation
From the data that collect from the research before, the charter rate of
the vessel to calculate the time charter time whereas that known rate is the rate
of charter per days. In calculating the cost of vessel charter will ignore the
operational cost except fuel consumption cost, because the operational cost
except fuel consumption cost are certified with the owner of vessel. To calculate
the cost transportation in one year can be done by multiply the vessel charter rate
per day with 365 days.
4.3.2. Receiving Terminal Investation Cost
Receiving terminal investation cost is calculated for the initial
investment or usually called by Capital Expenditure (CAPEX) and operational
cost for receiving terminal is called as Operational Expenditure (OPEX). The
calculation for CAPEX and OPEX is done with estimating the primary
equipment that needed for one receiving terminal and the operational in the
receiving terminal. In this research, there will only some of calculation of the
cost that affect and calculated for the CAPEX and OPEX such as, LNG storage
tank; LNG loading pump; jetty; office; cryogenic pipe and land investation for
the CAPEX calculation, but for the OPEX calculation there are the Energy Cost,
33
office building inventory, employee salary and accommodation, operating cost
and equipment maintenance cost.
Capacity of the receiving terminal are considered based on the sail
duration time of the vessel, vessel size and also the gas consumption for the
power plant every day. The higher power capacity that can produced by the
power plants will affect the gas consumption will become increase. Receiving
terminal should provide the gas, atleast same with the gas consumption that
needed by the power plant. However, the receiving terminal should have the tank
capacity that suitable with the demand of the power plant that served. Tank
capacity is depending on the duration time of the vessel in one round trip while
distributing the LNG. So there is connection between the time that needed to
distribute the LNG with the capacity that should be provided by receiving
terminal to collect the LNG. The longer duration for distribution, so it will make
the tank capacity become higher that should provide.
4.3.3. LNG Distribution Route Simulation
LNG distribution route simulation will be used the ARENA DES-
Software. Simulation process is only done to find the real-time results of
distribution design that already made by logical judgement. In this research, the
simulation has some considered parameter such as the type of vessel based on
the capacity for each vessel that will follow the demand that needed for each
receiving terminal. Route simulation will have deliberation with the vessel
capacity variable, vessel speed, distance of the delivery point, transportation
cost, the demand of power plants and the location of transshipment point. To
finish the problem of this LNG distribution after generating route, DES software
should be finish make the model.
To decrease the complexity in simulation process there are some
assumption are made, such as:
1. The service speed of the vessel is constant 16 knot
2. The simulation will not count the unsure real condition in the field
and the reduce time of the voyage is not counted.
3. Safety stock variable is decided as 7 days and 3 days only.
For the simulation of LNG distribution is made 2 models with 8
scenarios each model. The first model is considering 1 transshipment point and
the second model is considering there are 2 transshipment point. The figure
below will show the generated route to be simulated.
34
Figure 4.2 LNG Distribution Route Model 1
Description:
35
Figure 4.3 LNG Distribution Route Model 2
Description:
From the two model above then the simulation model in ARENA
software are made. The logical model in the software can be seen in the figure
below.
36
Figure 4.4 ARENA Logical Model (Model 1)
37
Figure 4.5 ARENA Logical Model (Model 2)
The result of the simulation in the first model above, can be concluded
that using the 3 days safety stock is not feasible technically because in 1 year
simulation of distribution, the inventory for some receiving terminal become
empty so it is not feasible technically. But for the 7 days safety stock, using 1
fleet combination with the considered inventory level are not feasible, because
the fleet is too small and it can’t reach the receiving terminal on time with the
LNG that the fleet transported.
In the second model the simulation result can be concluded that all of
the 7 days safety stock of inventory is the most feasible technically than the 3
38
days safety stock. For the details of receiving terminal capacity variation, fleet
combination that considered can be seen in attachment chapter.
Inventory (days)
Scenario
Sorong Manokwari Raja Ampat Fakfak Bintuni Biak
1 0 0 0 30 0 0
2 0 0 0 30 0 0
3 0 0 0 30 0 0
4 0 0 0 30 0 0
5 0 0 0 0 0 0
6 0 0 0 0 0 0
7 0 0 0 0 0 0
8 0 0 0 0 0 0
Inventory (days)
Scenario
Serui Nabire Sarmi Jayapura Kaimana Timika Merauke
1 0 0 0 46 0 0 19
2 0 0 0 24 0 0 19
3 0 0 0 25 0 0 19
4 0 0 0 24 0 0 19
5 0 0 0 10 0 0 0
6 0 0 0 0 0 0 0
7 0 0 0 0 0 0 0
8 0 0 0 0 0 0 0
Inventory (days)
Scenario
Sorong Manokwari Raja Ampat Fakfak Bintuni Biak
1 4 0 0 55 0 0
2 1 0 0 47 0 0
3 0 0 0 55 0 0
4 0 0 0 52 0 0
5 0 0 0 0 0 0
6 0 0 0 0 0 0
7 0 0 0 0 0 0
8 0 0 0 0 0 0
39
Table 4.9 (Cont.) Model 1 Simulation Results
Inventory (days)
Scenario
Serui Nabire Sarmi Jayapura Kaimana Timika Merauke
1 0 0 0 81 0 53 72
2 0 0 0 83 0 51 68
3 0 0 0 61 0 35 70
4 0 0 0 58 0 35 72
5 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0
7 0 0 0 0 0 0 0
8 0 0 0 0 0 0 0
The table above shown the amount of days that reach empty for each
receiving terminal. The amount is calculated in a year simulation, so for example
in Sorong for model 2, the tank capacity there reach empty for 4 days in 1 year.
That case made the route, scenario, variation of tank capacity become not
feasible technically to be created.
For this results, in the first model the distribution from supply to the
transshipment point is using 75,000 m3 capacity of vessel in altogether. But for
the second model, 100,000 m3 capacity of vessel that is used. It has to be done
to decrease the complexity between these two models.
4.4. Economic Study
Economic study that done in this research only include the financial
feasibility parameters such as the cost that spend for the operational activities in
distributing the LNG with LNG vessel transportation and also the LNG receiving
terminal investation. This research economic study is based on the assumption for the
price rate for each equipment and cost that needed for transportation of LNG from
the supply to the power plant as the demand point.
In this research economic study there are two variables for the consideration
to choose the feasible economically model and scenario. It only calculated these two
variables such as Capital Expenditure (CAPEX) and Operational Expenditure
(OPEX).
4.4.1. Capital Expenditure (CAPEX)
Capital Expenditure or CAPEX is all of the initial investment cost that
need to spend for project to start build the facilities in the receiving terminal.
This expenditure is amount of expense that occur once, which the value of the
asset is remain without depreciation. Capital expenditure changes in this study
mostly affected by size of receiving terminal capacity. These capital expenditure
is explained for each scenario that feasible technically to find the most feasible
economically for the model and scenario.
40
Table 4.10 CAPEX Model 1 Scenario 6
Table 4.10 above shown that the capital expenditure of the first model
that use 1 transshipment point in Sorong that use FSRU that have 100,000 m3
capacity tank for the FSRU. The total of capital expenditure for this model and
scenario is US$ 265,972,000. The details about investation cost for receiving
terminal is shown in the attachment chapter.
Table 4.11 CAPEX Model 2 Scenario 5
41
Table 4.11 above shown that the capital expenditure of the second model
that use 2 transshipment points in Sorong and Jayapura that use FSRU 60,000
m3 for the capacity tank. The total capital expenditure for this model and scenario
is US$ 264,291,000.
Table 4.12 The Summary of Total CAPEX Each Scenario
In general, the total CAPEX at each scenario is shown at the table 4.12
above. It is affected by different selection of receiving terminal capacity for both
models and different amount of transshipment point that considered. When
variation of scenario changed the fleet combination and inventory level signal to
transport, the capital expenditure has no difference.
4.4.2. Operational Expenditure (OPEX)
Operational Expenditure or usually called OPEX is all of the cost that
spend to support the operational activities while distributing the LNG including
the expenditure for receiving terminal and transportation expenditure to
transporting the LNG from the supply to receiving terminal. Operational
expenditure in receiving terminal include the fuel and energy cost, manning cost,
maintenance cost and terminal operation cost. Also for the LNG vessel
operational expenditure is including the port charge cost and vessel operation
cost in all route. In this research the receiving terminal operational expenditure
is assumed to be the same price in total.
Table 4.13 OPEX Model 1 Scenario 6
42
The table 4.13 above is shown the breakdown of operational expenditure
for the first model scenario 6. Charter cost and fuel cost is calculated and
summed up into the vessel operation cost in all route and it depends on ships
utility day. For the fuel price it is assumed as US$ 750 / ton.
Table 4.14 The Summary of Total OPEX Each Scenario
In general, the total OPEX at each scenario is shown at the table 4.14
above, that have differences between each scenario. It because of the fleet
combination that used to transport the LNG is difference type and charter rate
also.
4.4.3. Total Expenditure
Total expenditure is an accumulation of all expenses taken during certain
period including the capital expenditure and operational expenditure. This
number is help to consider to choose the feasible model and scenario
economically and to be applied as recommendation in real life. Total expenditure
later will be beneficial for projecting investation of LNG distribution.
Table 4.15 The Summary of Total Expenditure Each Scenario
The table 4.15 above is shown the total expenditure that need to be spend
for invest this LNG distribution each scenario and model. Also it can be seen
that the lowest expenditure is model 2 in scenario 7 with US$ 317,735,686 total
amount of expense. Meanwhile the highest expenditure is the first model
scenario 6 that have US$ 366,177,146 amount of expense.
43
Total Expenditure
$370,000,000.00
$360,000,000.00
$350,000,000.00
$340,000,000.00
$330,000,000.00
$320,000,000.00
$310,000,000.00
$300,000,000.00
$290,000,000.00
Model 1 Model 1 Model 1 Model 2 Model 2 Model 2 Model 2
Scenario 6 Scenario 7 Scenario 8 Scenario 5 Scenario 6 Scenario 7 Scenario 8
Total Expenditure
44
CHAPTER V
CONCLUSION AND SUGGESTION
5.1. Conclusion
Based on the data analyzing and simulation that already run in this study of LNG
distribution design, can make conclusions, such as:
1. The model is generated with 1 transshipment point in Sorong and 2
transshipment point in Sorong and Jayapura. From the transshipment point
is divided into 4 route in first model and 3 route for the second model. Then
the scenario is generated from the capacity of safety stock for 3 days and 7
days with 2 kind of fleet combination each variation.
2. Simulating using discrete-event simulation can be done in both model and
scenario by considering the receiving terminal tank capacity variation to
earn the receiving terminal cost and sail duration variable to earn the voyage
cost. The scenario is based on the inventory level as a signal for transport
between 50% and 60%.
3. The model simulation results are scenario 6, 7 and 8 in the first model and
scenario 5, 6, 7 and 8 in the second model never be empty in a year
simulation, but scenario 7 and 8 in the second model are the most feasible
economically for investation that have US$ 317,735,686 and US$
317,746,246 total expenditures.
5.2. Suggestion
After the simulation of LNG distribution design by considering transshipment
model for eastern part of Indonesia, suggestion that could be given for the next
research are:
1. When considering scenario, variable and parameter should find another
consideration variable and combine it to make the simulation more detail in
simulating a scenario. Besides that, considering a make sense scenario can
be make a good decision for the simulation.
2. In the next research analyzing economical aspects about the investment for
rate of return and NPV possible to be done to find more efficient and
promising scenario for this LNG distribution.
45
REFERENCES
Ministry of Energy and Mineral Resources of Indonesia. 2017. Rencana Usaha
Penyediaan Tenaga Listrik. Jakarta: Ministry of Energy and Mineral
Resources of Indonesia.
Ministry of Energy and Mineral Resources of Indonesia. 2017. Handbook of Energy
and Economic Statistics of Indonesia. Jakarta: Ministry of Energy and
Mineral Resources of Indonesia.
Oscarino, Yohanes Narwastu Silitonga. 2010. Distribution LNG from LNG plant to
Floating Storage Regasification Unit (FSRU) to supply Indonesia Power
Demand by using Simulation. Surabaya: Sepuluh Nopember Institute of
Technology.
Holstein, Edward D. 2007. Volume V – Reservoir Engineering and Petrophysics.
North America: Society of Petroleum Engineers.
Artana, Ketut Buda and Soegiono. 2006. Transportasi LNG Indonesia. Surabaya:
Airlangga University Press.
Dewangga, Cakra. 2016. Optimasi Distribusi LNG Untuk Pembangkit di Kepulauan
Maluku. Surabaya: Department of Marine Engineering.
Widodo, Ario D. 2017. Scenario of LNG Distribution by Ships for Eastern Indonesia
Using Discrete Event Simulation. Surabaya: RAMS Laboratory in
Department of Marine Engineering.
Antara, Gede Bagus Dwi Suasti. 2017. Optimasi dan Analisa Keekonomian
Distribusi LNG ke Pembangkit di Wilayah Papua. Surabaya: Department of
Marine Engineering
Bris, Martina. 2010. Transshipment Model in the Function of Cost Minimization in a
Logistics System. Croatia: Faculty of Economics in Osijek.
Keppel Offshore & Marine Technology Centre. 2014. Small-Scale LNG Carriers.
Keppel Offshore & Marine Technology Centre.
Singh, V. P. 2009. System Modeling and Simulation. New Delhi: New Age
International Limited, Publishers.
Kelton, W. David. 2010. Simulation with Arena, Fifth Edition. New York:
McGraw-Hill Education.
Banks, Jerry. 2010. Discrete-Event System Simulation, Fifth Edition. New Jersey:
Pearson Education, Inc.
Amrita, I Putu Yusna. 2011. Optimasi Rantai Pasok LNG: Studi Kasus Kebutuhan
LNG di Bali. Surabaya: Department of Marine Engineering.
46
ATTACHMENT 1
DATA OF LNG CARRIER
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Gross Tonnage 20017 tonnage
Service Speed 17 knot
Pump Capacity 850 m3/hour
Main Machinery 10447 BHP
Ship's Crew 16 Persons
Unit Conversion
1 Million Ton Per Year 140 MMSCFD
100 MMSCFD 730000 TPY LNG
100 MMSCFD 2100 TPD LNG
100 MMSCFD 700 MW
1 m3 LNG 21.2 mmbtu
1 MMSCFD 46 m3 LNG
Specific Gravity LNG 0.46
48
ATTACHMENT 2
ARENA SOFTWARE
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ARENA Software Model 2
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Model 1 Minimum Tank Variation Calculation
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Model 1 Fleet Combination 1
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Model 2 Minimum Receiving Terminal Capacity Calculation
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Model 2 Fleet Combination 1
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ATTACHMENT 3
ECONOMIC STUDY
Receiving Terminal Investation
CAPEX
Receiving Terminal
LNG Storage Tank US$/m3 $ 1,500.00
LNG Loading Pump US$(m3/hour) $ 75,000.00
Office US$ $ 77,000.00
Jetty US$/m $ 14,000.00
Cryogenic Pipe US$/m $ 750.00
Land Invest US$/m2 $ 151.00
FSRU
Description Unit Nominal Cap. (m3)
Price Rate US$ $ 100,000,000.00 100000
Price Rate US$ $ 80,000,000.00 60000
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Operational Expenditure Model 1 Scenario 8
OPEX Unit Item Cost/year
Fuel & Energy Cost Set 1 $ 811,944.00
Maintenance Cost Set 1 $ 775,000.00
Manning Cost Set 1 $ 1,462,300.00
Terminal Operation Cost/year Set 1 $ 10,575,519.48
Port Charge Cost Set 1 $ 70,035.00
Vessel Operation Cost (All Route) Set 1 $ 70,085,325.00
Total $ 83,780,123.48
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Operational Expenditure Model 2 Scenario 7
OPEX Unit Item Cost/year
Fuel & Energy Cost Set 1 $ 768,582.00
Maintenance Cost Set 1 $ 775,000.00
Manning Cost Set 1 $ 1,462,300.00
Terminal Operation Cost/year Set 1 $ 10,575,519.48
Port Charge Cost Set 1 $ 61,710.00
Vessel Operation Cost (All Route) Set 1 $ 39,801,575.00
Total $ 53,444,686.48
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AUTHOR BIOGRAPHY
Phone/WA : +6281287580376
Email : [email protected]
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