Abstract
The price of natural gas has always been controversial; there are always different points of view between producer and consumer because of its determination. But in reality, it is not easy to reach the price in equilibrium conditions. On the other hand, the Indonesian Government has regulated the gas prices for several industries to increase the industrial sector's competitiveness. This study examines gas users' willingness to pay for power and fertilizer industries and compares it with the current gas price policy. Willingness to pay gas users is determined by the netback value of the final product. Studies show that willingness to pay is 8.09, 2.71, and 3.37 $/MMBtu for load follower gas-fired power plant, peaker gas-fired power plant, and fertilizer plant, respectively. Willingness to pay for the load follower gas-fired power plant is higher than the current gas price (6 $/MMBtu), except for the peaker gas-fired power plant and fertilizer plant. The current gas price includes government subsidies by reducing the portion taken by the Government from the upstream sector. Therefore, the Government needs to determine which industries deserve special gas prices by considering their willingness to pay in the future.
| Original language | English |
|---|---|
| Article number | 020012 |
| Journal | AIP Conference Proceedings |
| Volume | 2741 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 19 Jul 2023 |
| Event | 4th TALENTA Conference on Engineering Science and Technology: Sustainable Infrastructure and Industry in the New Normal Era, CEST 2021 - Medan, Indonesia Duration: 24 Nov 2021 → … |
