Study On Post Production Arun LNG Refinery Utilization
as LNG Receving Terminal And Regasification
Upon Local Economy

Alisastromijoyo[1], Ukar W. Soelistijo[2], Aryo P. Wibowo[1a]
Page No. 205-229

The aim of the study is the development analysis of post production Arun LNG refinery whose
period of operation within 1978-2014, then modified and utilized as LNG receiving terminal and
regasification is useful to satisfy gas requirement in Aceh and North Sumatera provinces. To realize
the feasibility of a project, a study of economy was conducted in 2 years period of improvement, 20
years operation, and supply of LNG some 150 MMSCFD for first year, and stage by stage up to 350
MMSCFD fifth year to twentieth year for maximum capacity of production. The study of the project
feasibility is carried out by way of 4 parameters: NPV, IRR, BCR, and PBP analyses in 3 scenarios.
As for the best result of the economic economic analysis feasible in first scenario whith the NPV is
US$ 831.564 million, IRR 19%, B/C Ratio 4 and PP on 5th year to 6 months of operation. PT. Arun
was delivering significant contributions of 52.88% North Aceh economic composing sectors; it is
visible while in reduction of 2006-2012 North Aceh Gross Regional Domestic Product (GRDP), a
reduction of IDR 7.68 trillion in 2006 to IDR 4.32 trillion in 2012. with the average rate of growth
minus nine percent (-9%) per year. Based on the mean rate of growth (3%) per year, the condition
reflects potential decline of local output and their considerable relevance to decrease in production
of PT. Arun. Based on the study, the Arun post production LNG Refinery Re-utilization will be
delivering contribution of GRDP some IDR 1.081 trillion in 2015, rise to IDR 2.651 trillion in 2034
and the rate of growth at 16% per year. When the degree of change in GRDP (DY) is related to
Arun LNG Refinery Re-utilization, the projection of investment and job opportunity for formation of
GRDP per year will be discovered. Growth rate of labor productivity declines due to the growth of
labor is higher than the growth of capital and capital productivity would other wise rise. Labor
productivity level in capital-labor ratio in Y/L and Y/K with LNG Refinery Re-utilization larger
than Y/L and Y/K without Arun LNG Refinery Re-utilization.This project have net social gain (NSG)
in 2015 IDR 72.12 billion with net gain coefficient (NGC) some 6.70% had increase in 2034 some
IDR 91.44 billion or NGC some 3.64% with average NGC some 3.77% per annum.
Keywords: Arun LNG Refinery, Receiving Terminal, Regasification, Economic Analysis, Local Economy