Indonesia Sumatatera Sng Project

8/17/2019 Indonesia Sumatatera Sng Project

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Feasibility Studies with the Aim of Developing a Bilateral Offset CreditMechanism FY2011

Studies for Project Development and Organization

Indonesia Sumatera SNG Project

Feasibility Study of Low rank coal to SNG

New Energy and Industrial Technology Development Organization (NEDO)Mitsubishi Heavy Industries, Ltd.


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Indonesia Sumatera SNG Project

Feasibility Study of Low rank coal to SNG

2012/5


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Low rankcoal

SNG

CO

SNG Plant

EOR/CCS

To existingpipeline

4.55 Mton/yr

11.4M ton/yr

150MMSCFD

コンバスタ

リダクタ

SGCSGC 化炉化炉

Coal Gasifier(Oxygen blown)

Gas purification

Pre-Drying

SNGCompression

CO2

Synthesisgas

CO2 Compression

Project Outline (1/1)

SNGSynthesis

Coal Supplier

1. Outline of Sumatera SNG Project


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SNG Plant

JAKARTA

CO2OilCO2

EOR

Concept

SNG Plant

Low Rank Coal Mine

Oil Plant

CO2 Injection

Singapore

JAKARTA

NG

Pipeline

South Sumatera is promising plant location.

● SNG plant is constructed beside Low Rank Coal mine. SNG product is transported to West Java withexiting pipeline.

● Byproduct CO2 is injected existing oil fields for EOR and CCS.

Project Outline 2/2)

1. Outline of Sumatera SNG Project


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● Design of coal gasification and SNG synthesis processwith Low Rank Coal

● Estimation of Plant Capital and Operating Cost

● Oxygen-blown gasification test with “Indonesian LowRank Coal” at Gasification Pilot Plant in Nagasaki Japan

● Study of EOR and CCS opportunity of CO2, byproduct

SNG Plant● Study of application for “Bilateral Offset Credit

Mechanism (BOCM)”

2. Outline of Feasibility Study


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Gasifier

Control Room

Coal Feeder

● Oxygen-blown Gasification test using “Indonesian Low Rank Coal” wasconducted at 50ton per day class Pilot Plant in MHI’s Nagasaki R&D center.

● Test results such as main syngas components and gasification efficiency, will bereflected to the design of Commercial class gasifier.

Appearance of 50 t/d class Coal Gasification Pilot Plant

Coal Gasification Pilot Plant Test(1/2)

3. Feasibility Study Result


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Slag

SlagWaterBathe

Slag hole

camera

GasifierVessel

Combustor

Waterbathe

camera

Slag is discharged very stably. No unburned carbon falls down from slag hole. Discharged Slag is grassy. (Good appearance)

Discharged slag

slag hole camera

water bathe camera

Coal gasification test was completed successfully.

Coal Gasification Pilot Plant Test(2/2)



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Initial Screening Study of CO2/EOR

- Initial CO2 EOR/CCS Screening Study was completed. The study was

screening of oil fields in South Sumatera Basin of 100km radius of SNG

plant.

- The study collected data of half of oil fields in the radius. 2/3 of

reservoirs show CO2/EOR miscible flooding.

- Detail study for CO2/EOR for one representative reservoir was

conducted. The study of core sampling, slim tube test and geologicalsimulation was carried out. Increment oil recovery is estimated to be

28.8%.



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BOCM / CO2 Emission Reduction Calculation 1/1)＜Coal Gasification＞

＜CCS-EOR＞

ER y : 3,316,404 tCO2/yr GHG emissions reductions in year y by CCS-EOR

BE y : 4,560,270 tCO2/yr Baseline emissions reductions in year y

PE y : 1,243,866 tCO2/yr Project emissions reductions in year y

LE y : 0 tCO2/yr Leakage in year y

ER y : 2,975,874 tCO2/yr GHG emissions reductions at the Coal Gasification Plant in year y




＜Combined Result＞

ER y : 6,292,278 tCO2/yr GHG emissions reductions by coal gasification and CCS-EOR in year y






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Base Condition for Sensitive Analysis of SNG Price

Item Unit Price

① EPC Plant Cost MM USD 2,920～ 3,650 (100%～125%)

② Coal Price $/ton 13 ～ 16

③ Target SNG Price $/MMBtu < 10

④ CO2 Off Take Price $/ton30～ 50

(25 years)

⑤ BOCM Credit Price $/ton0 – 10

(10 years)

⑥ Finance Repayment %p.a./ Year 5% / 18

⑦ Return on Equity (ROE) % 12.5

⑧ Project Period Year 30

⑨ Availability % 90

Sensitive Analysis (1/2)



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Coal Price CAPEX CO2 Price ( US$/ ton) SNG Price

(US$ / MMBtu)Off-Take BOCM Credit

Project Target @ 13 US$ / ton 3,302 MM US$

(EPC 2,920 + O/C 208 +IDC 174)

30 10 10.0

EPC Cost High @ 13 US$ / ton 4,073 MM US$

(EPC 3,650 + O/C 208 +IDC 215)

30 10 12.1

Coal Price High @ 16 US$ / ton 3,302 MM US$

(EPC 2,920 + O/C 208 +IDC 174)

30 10 10.8

CO2 Credit Price

Zero

@ 13 US$ / ton 3,302 MM US$

(EPC 2,920 + O/C 208 +IDC 174)

30 0 10.8

CO2 Off TakePrice High

@ 13 US$ / ton 3,302 MM US$

(EPC 2,920 + O/C 208 +IDC 174)

50 10 7.9

CO2 Off TakePrice High

@ 13 US$ / ton 4,073 MM US$

(EPC 3,650 + O/C 208 +

IDC 215)

50 10 10.0

Sensitive Analysis (2/2)

O/C : Owner’s Cost, IDC : Interest during Construction



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4. Feasibility Study Summary

The product price of SNG is 10 $/MMBtu calculated by sensitiveanalysis. This price is equivalent to import LNG CIF price.

Coal gasification test was completed successfully. Slag was discharged

very stable. No unburned carbon fell down from slag hole. Initial CO2 EOR/CCS Screening Study around the potential low rank coal

mine was completed. The study was screening of oil fields in SouthSumatra Basin of 100km radius of SNG Plant. The study collected dataof half of oil fields in the radius. 2/3 of reservoirs show CO2 /EOR

miscible flooding. The reduction potential volume of CO2 was calculated and the

methodology of CO2 reduction for Indonesia SNG/EOR plant wassummarized. Possible CO2 Reduction volume in this plant will be about6.29 M t/y.

Documents

Indonesia Sumatatera Sng Project