Technology selection of LNG receiving terminals in Gresik, East Java

R. Wicaksono, M. Sudibandriyo

Research output: Contribution to journalConference articlepeer-review


Java, the centre of industry in Indonesia, needs fuel gas supplies to maintain production continuity. The addition of gas infrastructures in the form of Liquefied Natural Gas (LNG) receiving terminals can be an alternative to secure gas supplies. Such a terminal is planned to be built in Gresik, East Java. This paper aims to examine the most appropriate technology for LNG receiving terminals to be built in East Java by considering both technical and economic aspects. In this research, LNG receiving technology was selected based on the terminal location and selection of the regasification technology using the method Analytic Hierarchy Process. Moreover, economic and sensitivity analyses were also performed. Research findings suggest the land-based LNG receiving terminal with regasification technology in the form of shell and tube vaporizers as the most suitable LNG receiving terminal in Gresik, East Java. Land-based LNG receiving terminal establishment in Gresik, East Java is feasible as regasification costs 0.468 USD/MMBTU, the Net Present Value (NPV) amounts to 31943500 USD, the Internal Rate of Return (IRR) reaches 19.25%, the Benefit-Cost (BC) Ratio equals 1.23, and the Payback Period (PBP) is 3.4 years. The throughput required by the power plant generates the greatest sensitivity to IRR.

Original languageEnglish
Article number012043
JournalIOP Conference Series: Materials Science and Engineering
Issue number1
Publication statusPublished - 1 Jan 2019
Event1st International Symposium of Indonesian Chemical Engineering, ISIChem 2018 - West Sumatra, Indonesia
Duration: 4 Oct 20186 Oct 2018

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