DETERMINATION OF NATURAL GAS PRICE BASED ON THE ECONOMIC ANALYSIS USING THE NETBACK VALUE METHOD BACHELOR THESIS Aulia Padlan 12215049 Submitted as partial fulfillment of the requirements for the degree of BACHELOR OF ENGINEERING In Petroleum Engineering study program PETROLEUM ENGINEERING STUDY PROGRAM FACULTY OF MINING AND PETROLEUM ENGINEERING INSTITUT TEKNOLOGI BANDUNG 2019 DETERMINATION OF NATURAL GAS PRICE BASED ON THE ECONOMIC ANALYSIS USING THE NETBACK VALUE METHOD BACHELOR THESIS Aulia Padlan 12215049 Submitted as partial fulfillment of the requirements for the degree of BACHELOR OF ENGINEERING In Petroleum Engineering study program Approved by: Thesis Adviser, June 27 th , 2019 Ir. Utjok WR Siagian M.Sc.,Ph.D. NIP 196009191998031001 1 DETERMINATION OF NATURAL GAS PRICE BASED ON THE ECONOMIC ANALYSIS USING THE NETBACK VALUE METHOD Aulia Padlan*, Utjok WR Siagian** Copyright 2019, Institut Teknologi Bandung Abstract Indonesia has very large natural gas reserves, consist of proven reserves and potential reserves. These gas reserves should be utilized for various kinds of needs. With the number of utilization option, there are differences in raw gas price. The gas field owners find it difficult to determine the gas selling prices for the different products depends on gas products prices and infrastructure. A method is needed to determine the raw gas prices by considering the gas processed products and the processing and transportation infrastructure. Using the netback value method, a design of processing, purification, and transportation is created in order to help designing the infrastructure of the gas field and determining the raw gas price. The netback value method helps estimating the raw gas price produced in the field using the economic analysis and calculation. The calculated parameters are the gas product prices, CAPEX cost, OPEX cost, Investment Rate of Return (IRR), lifetime, and depreciation. These parameters are calculated in each process, start from the gas field until the gas products. By using this method, the price for the raw gas will be obtained. There will be a lot of alternatives for the raw gas before it is processed, depends on the gas component and the final products. For each route, it will propose each price. The final products could be a single product or combined product.