Feasibility Study of Development Small Scale Liquefaction Natural Gas in East Java as Alternate Fuel for Liquid Fuel Oil and Liquefied Petroleum Gas

Abstract

Lintas Nusantara Gas Ltd. has been running Liquefied Natural Gas (LNG) business in Wunut village, Porong district adjacent to two gas supply sources, East Java gas pipeline distribution PGN (Perusahaan Gas Negara) and EJGP (East Java Gas Pipeline) owned by Pertamina. The location was chosen because of its potential for commercial gain by building a natural gas liquefaction plant. The purpose of this study to determine the feasibility of following aspects such as market and marketing, production technics, management and organization, legality and legal, economic and financial aspects, as well as the EIA aspects. The analytical method used is descriptive business feasibility analysis. The results showed that: a) the development of a natural gas liquefaction plant small scale in East Java by PT. Lintas Nusantara Gas when viewed in the views of market and marketing aspects is feasible to do; b) development of a natural gas liquefaction plant small scale in East Java by PT. Lintas Nusantara Gas from, viewed from the technical production aspects and the technology, is also feasible to do; c) the development of a natural gas liquefaction plant small scale in East Java by Lintas Nusantara Gas Ltd., viewed from management and organizational aspects, is feasible to carry out; d) development of a natural gas liquefaction plant small scale in East Java by Lintas Nusantara Gas Ltd., seen from legality and law aspects deserves to be done; e) the development of a natural gas liquefaction plant small scale in East Java by Lintas Nusantara Gas Ltd. in terms of economic and financial aspects is feasible to do; and f) the development of a natural gas liquefaction plant small scale in East Java by Lintas Nusantara Gas Ltd. viewed from the perspectives of Environmental aspects (EIA), is also feasible.