The extension analysis of natural gas network location-routing design through the feasibility study

From 2001 to the present, natural gas production in Indonesia dominates petroleum production. Most of the natural gas is used for export until 2013. From 2014 until now, most of the natural gas production is being utilized for domestic with an increasing trend. Domestic gas usage for households is still far below industry and commercial sectors. Domestic gas usage in the household can be done in two ways, namely city gas and Liquefied Petroleum Gas cylinder. The use of city gas is better in terms of price, mitigation, and gas emission. The government plans to build a new city gas network for 4,000 households. This study aim is to propose the design of city gas network, so the construction and operational costs become minimal. This research uses three stages, namely division of region by using the clustering algorithm, the gas network route determination using heuristics algorithm, and determination of the feasibility using the Benefit-Cost Ratio. We have successfully calculated the maximum region’s capacity by making use of Weymouth Formula. The iterative clustering algorithm is done to make sure the location of Distribution Centers is well-defined. We modified the distance measurement by preferring driving distance rather than Euclidean in the interest of precision. In the end, we also discuss the feasibility study of the project. Based on the calculation, we have obtained that the gas network development project is feasible to run.