Volume 62

Mapping of the Infrastructure Technology Application to Develop Small-Scale Stranded Gas Fields Using Economic Evaluation Based on the Production Sharing Contracts in Indonesia Dohar Jono Sihombing, Indarto, Deendarlianto

Abstract

In this research, the evaluation and analyses of the application of compressed natural gas (CNG), liquified natural gas (LNG), and gas to liquid (GTL) technology to develop the stranded gas field was established based on economic evaluation. The evaluation is performed by calculating the unit cost (capital, operating, and transportation costs); then analyzing the economic aspects of Net Present Value (NPV) based on the fiscal cost recovery regime in Indonesia. The scenario applied is an alteration in production (range 1 – 25 MMSCFD) with constant transportation distance (100 km) and modifying transportation distance (range 100 – 2,000 km) with fixed production (5 MMSCFD). The infrastructure technology mapping was developed by evaluating the economics based on the applicable production sharing contracts and without minimum limits imposed by the government. Sensitivity analysis was applied to highlight the most dominant aspects in determining the economic utilization of the three technologies and to evaluate the mapping of infrastructure technology applications based on government revenue variations.

Keywords stranded gas, infrastructure technologies, cost recovery, CNG, LNG, GTL