Techno Economic of DME Technology Utilization in Marginal Gas Development

Abstrak

In 2017, the total subsidized Liquid Petroleum Gas (LPG) demand reaches 6.2 million MT, while in 2018 it is estimated to increase to 6.5 million MT equivalent to Rp. 46.9 trillion subsidy required or nearly 50% of energy subsidy budget. About 70% of this amount is fulfilled by import from Iran and Saudi Arabia. The development of gas fields currently considered as marginal for Dymethil Ether (DME) production which is mixed with LPG could reduce LPG import and save the country's foreign exchange reserves. Marginal gas reserves are recorded to be about 60.1 TCF, with East Natuna Field contribution of 46 TCF. Utilization of the gas into DME using indirect synthesis process technology has been proven and commercially operated where the gas is processed into methanol and then followed by methanol dehydration process. Considering current LPG price of US $ 665 per MT, the DME refinery with 3 MMSCFD feed gas is able to provide economic indicator of IRR of 15%, NPV US$ 3 million and PBP 5 years with competitive selling price of DME which is US $650 per MT. The national economic impact obtained by utilizing 5% of marginal gas reserves can replace import quotas for approximately 13 years.