PT Anglo Euro Energi Indonesia is involved in the development of Arun as an LNG Hub for Storage, Break Bulk and LNG Bunkering.
Arun is a land based terminal and better placed to provide ancillary services (e.g. break bulk, bunkering) vis-à-vis floating regas solutions.
Nusantara in West Java, Lampung in South Sumatra and Melaka in Malaysia are floating solutions and will not be able to provide ancillary services.
Arun is located closer to the traditional LNG suppliers - Brunei, Malaysia and Indonesia. Also, the LNG ships en route to North East Asia from Middle East and Atlantic basin pass through the vicinity of Arun.
Arun is also closer to the emerging LNG demand centers (i.e. India and South East Asia) and LNG trade flow around the terminal will increase as these demand centers increase their LNG consumption. Arun is hence better suited to provide break bulk and LNG bunkering services.
The start-up of ancillary services at Arun terminal can also help the development of associated downstream industries
Arun terminal can target to become a Regional LNG Hub by introducing break bulk and LNG bunkering services.
Break Bulk Services
Break bulk services will help penetration of LNG into demand centers that conventional LNG cannot capture through development of small scale Regas projects which are less capital intensive.
Significant cost savings are reliable, but are very site and application specific:
- Onshore vs. floating
- Throughput rate
- Storage volume requirements and storage tank design
- LNG vaporization method
Arun can play the role of a credit worthy intermediary enabling small demand centers to switch to LNG
Many end-users understand the benefits of substituting fuel oil with LNG – but they lack the LNG competencies and scale to pull it off
Infrastructure providers (ships and terminals) have viable solutions – but do not have competencies to originate and manage LNG supplies & sales
LNG Suppliers do not want to aggregate small volumes or get involved in infrastructure development
An intermediary (like Arun terminal) can help to structure the transactions, execute the LNG buy & sell trades and manage infrastructure development
There are several demand centers around Arun which can be targeted for break bulk services such as Sri Lanka, East Coast India, Myanmar, Bangladesh, Cambodia, Vietnam. Philippines (Mindanao).
Storage and Back-Loading Service
Pertamina has dedicated two storage tanks in Arun for Hub utilization and given the estimated current demand of ~1.5 mmtpa, one tank should be able to serve domestic demand.
However we are confident through proper management via increasing Throughput rate rather than presently practiced Segregation approach, at least 3 tanks can be utilized for Regas and Hub services which will generate a greater revenue of both the Central and Provincial Aceh Government.
If Arun provides a cargo storage and back- loading service to 3rd parties, the regas facility can earn storage and back-loading fees.
LNG traders will prefer to use the surplus storage capacity at Arun as long as the fees are lesser than those compared with ship charter rates, as ships provide an alternative mode for storing LNG
However, it is worth noting that the competition for such services is high.
LNG Bunkering Services
Stringent marine emission regulation norms are driving interest in LNG bunkering in Europe with a similar trend emerging in North America and we believe LNG bunkering will take off in Asia post 2020.
The great share of global bunker demand comes from commodity trade routes through Asia.
We expect the dominance of trade routes via Asia in bunker demand to continue.
LNG Ship Gas-Up and Cool-down Service
Arun terminal can be utilized to provide services relating to gassing up and cool down on an LNG vessel.
For gas up operations the Nitrogen is displaced with LNG vapors in a controlled manner. Then the vessel tanks are slowly cooled before injecting LNG.
The Arun Regas terminal can earn viable fees each year from providing such ancillary service.
Development of Arun into a Regional LNG Hub will lead to optimum usage of the asset and also help to revitalize the falling North Aceh Gross Regional Domestic Product.
The existence of small demand centers around the terminal and location enroute the shipping journey of North Asia makes Arun an ideal project for break bulk services and LNG bunkering. We estimate the market potential for break bulk services at ~5 MTPA. We estimate the market potential for LNG bunkering services at ~1 MTPA.
Development of domestic and external markets will generate a constant revenue stream and a higher throughput rate will increase competitiveness over other onshore Regas terminals in the region.
Both the Central and Provincial Governments will benefit from the revenues generated from Arun as international LNG Hub, which will have multiplier effects on the economy. Ancillary services like break bulk and LNG bunkering will generate additional employment for the local people.
Small Scale LNG Carrier
Outline Specification – 28,000m3 LNG Carrier
- 3 numbers of independent IMO type C tanks (cylindrical type)
- Maximum cargo density of 0.50 t/m3
- Minimum design temperature of minus 164°C
Particulars – Capacities, Deadweight,Consumption
|Overall Length||: 176.80 m|
|Length between perps.||: 166.00 m|
|Breadth||: 27.60 m|
|Death, main deck||: 18.50 m|
|Draught||: 7.80 m|
|Deadweight||: 15,000 tones|
Cargoes – Liquefied Natural Gas
|Design temperature||: -164 degr.C|
|Design specific Gravity||: 0.50 t/m3|
|Design pressure MARVS||: Appr. 3.5 bar g|
|Cargo tank volume||: 28,000 m3|
|M.D.O tank||:||Appr. 700m3|
|L.O. tank (100% full)||:||Appr. 120m3|
|Fresh water tank||:||Appr. 300m3|
|Ballast water tank||:||Appr. 9100m3|
|Service speed||:||Appr. 16.80 knots|
|Dual fuel||:||LNG (abt. 1393 GJ/d) & MDO (appr. 0.30 t/d)|
|MDO fuel||:||Appr. 35.25 t/d|
|Endurance||:||Appr. 15 days|
|Cruising range||:||Appr. 6000nm|
Main Engine for Propulsion
One (1) medium speed, four (4) stroke, single acting, non-reversible, dual-fuelled, trunk type, equipped with exhaust gas turbocharger.
|Number of Engine||:||One (1)|
|Number of Cycles||:||Nine (9)|
|Rated power (MCR)||:||8775kW x 514 r/min|
|Fuel||:||Natural gas / MDO|
Specific energy consumption: 7220 kJ/kWh + 5% at MCR using natural gas with a low calorific value of 36.0 MJ/m3n at shop test under ISO reference condition.