Natural Gas Pipeline Economics by Widodo W. Purwanto
Departemen Teknik Kimia
Type of natural gas transportation How to bring natural gas from the fields to potential gas markets? Pipeline Liquefied Natural Gas (LNG)
GAS SUPPLY
Compressed Natural Gas (CNG) Gas to hydrate (GTH)
GAS MARKETS
Gas to Liquids (GTL) Gas to Chemicals (GTC) Gas to Wire (GTW)
Physical transportation Chemical conversion
: pipeline, LNG, CNG, GTH : GTL, GTC, GTW
Concept map natural gas transportation
Source: Hetland
The European Gas Pipeline
“The Sumatran Gas Hub”
MALAYSIAKerteh Kuala Lumpur
NATUNA SEA
SUMATRA Duri
Singapore Batam 600 Kms South Jambi B PSC
1. Corridor Block to Duri
540 Km 1999
2. Corridor Block to Singapore
530 Km 2003
3. Corridor Block to PLN Jkt
606 Km 2006
-----------1676 Km ======
Corridor PSC
J A V A
S E A
Jakarta
JAVA
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West Java Gas Market ASAHIMAS CHEMICALS CHANDRA ASRI OTHER PETCHEM
TANJUNG PRIOK
MUARA KRAKATAU KARANG STEEL*
MUARA TAWAR
PGN JAKARTA
EXOR-I LPG MUNDU
CIKARANG LISTRINDO* 26”-12km
24”-74km
BITUNG
Gas Consumer
WALAHAR 24”-45km
24”-27km
24”-51km
10”-27km
SERPONG
TEGAL GEDE
CIMANGGIS
Gas Processing Facility Comp. Station
10”-12km
City Existing Pipeline Current Users
WEST JAVA
BOGOR
CITEUREUP
18”-45km
Potential Users
* Not taking gas/taking minimal amounts currently
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SUNYARAGI
24
SEMEN CIBINONG
PGN BOGOR
14”-59km 18”-59km
8”-25km
Power Plant
CILAMAYA
JAKARTA
16”
LEGEND
SEMEN PALIMANAN
12”
CIKAMPEK
PUPUK KUJANG
LPG SDK
PGN CIREBON
CIREBON LPG SDK
Nautical mile =1.85 km
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Engineering Yardsticks Gas velocity: 5 – 15 m/sec Pressures at consumers: 20-30 bar Transmission pipeline pressure: 60 bar-100 bar Compressor: interval of 150-200 km Onshore pipeline CAPEX: ~20,000 US$/in-km Annual operating cost of pipeline 0.5 -1.5% of the total investment cost Annual operating cost of compressor 4-5% of the total investment cost Offshore gas velocity: up to 30 m/sec Offshore pipeline pressure: 100-130 bar Offshore pipeline CAPEX: ~40,000 US$/in-km © PEUI -2007
Pipeline cost formula
Cost (in millions US$/mile) = 563,000 +35,600 x D D: pipeline diameter in inches Cost (in millions US$/km) = 350,000 + 871,000 x d d: pipeline diameter in meters
Source: Seddon, 2006
Pipeline Cost
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Source: Mohitpour
Steel price $900
2006
$850
2005
$800
2004
$450
2003 $0
$200 $400 $600 $800 $1,000 Steel Plate Price per Net Ton © PEUI -2007
Compressor cost formula
Cost (in millions US$) = 2,970,000 +1,120 x P P: compressor power in hp Cost (in millions US) = 2,970,000 + 1,500 x p p: compressor power in kW
Source: Seddon, 2006
Rule of thumb: Pressure drop, Power & Fuel consumption 50 km pipeline, 24 in, 200 PJ/y (500 mmscfd) dP=10 bar ~1.8 MW Fuel consumption on annual basis 31.5 GJ/kW ~ 22.3 mmbtu/hp 50-60 km, fuel consumption 3%of the gas transmitted
Source: Seddon, 2006
Engineering Yardsticks for Gas Transport
Principal working assumptions for pipeline and LNG cost study
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PT Perusahaan Gas Negara for the South Sumatra to West Java Phase II Gas Pipeline Project
Transmission tariff (toll fee)
1000 km, 200 PJ/y Estimating pipeline tariff = Cost of the pipeline/(Total volume of gas carried over the line’s lifetime in Mscf) x 3.35
Source: Seddon, 2006 © PEUI -2007
… financing No.
pipeline project
Name of Project
Loan Condition
1
W. Java Transmission System
2
Gas Distribution (Jakarta, Bogor, Medan)
I = 12 %, grace period = 5 years, loan period = 15 years
3
Gas Distribution (Surabaya)
i = 13 %, grace period = 5 years, loan period = 15 years
4
Grissik - Duri
i = 15 %, grace period = 4 years, loan period = 20 years
5
Grissik – Batam - Singapore
i = 15 %, grace period = 4 years, loan period = 20 years
6
S.Sumatra - W.Java
i = 0.95 % and 0.75%, grace period = 10 years, loan period = 40 years
7
W. Java Trans & Distribution Expansion
i = %, grace period = years, loan period = years
8
Cirebon - Semarang
9
Semarang - Gresik
10
E. Kalimantan – Central Java
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Financing the project: from public to private
No.NameofProject
1W.JavaTransmissionSystem 2GasDistribution(Jakarta,Bogor,Medan) 3GasDistribution(Surabaya) 4Grissik-Duri 5Grissik–Batam-Singapore 6S.Sumatra-W.Java 7W.JavaTrans&DistributionExpansion 8Cirebon-Semarang 9Semarang-Gresik 10E.Kalimantan–CentralJava Source:Bappenas
Year L(km)D(inch$) (MM) 1978 1986 1990 1995 2001 2004 2005
200+ 28
Pertamina Pertamina IBRD PGN IBRD PGN 544 28 ADB,EIB PGN 478 28 ADB,EIB PGN 520 28,32 JBIC,PGN PGN PGN,IBRD PGN 230 Private Private 250 Private Private 1,219 1,600 (est.) Private Private
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120 34 86 310 415 440 120
Funding Owner
