Abstract

This study is focused on how to do the most efficient customer curtailment in terms of pipeline network, financial and social welfare. The author tries to combine the regulations from the Indonesian government regarding the prioritization of gas distribution with the negative balance conditions at the author's company. The current condition of the author's company is in a negative supply balance condition due to declining supply outside of the current plan, many efforts have been made such as finding replacement supplies and trying to maximize other supplies, but the supply condition is still in negative balance, so it is necessary to make demand curtailment. There are many things that must be considered such as Indonesian government regulations, network conditions at the author's company and cost efficiency, so we created a priority list of demand curtailment which summarizes all of the above. The priority list contains:

1. The order of priority from the government is as follows: city gas, lifting of oil, fertilizer, natural gas industry, electricity and industry that use natural gas as fuel.

2. The position of curtailed customer affects the effectiveness on the pipeline network.

3. On financial terms, where the curtailment will affect the company's gross margin, so it is necessary to set a curtailment with the smallest gross margin reduction.

4. The curtailment process still pays attention to the needs of many people.

From the priorities that we have made, it has been implemented several times, and has given good results. Curtailing bulk customers at low prices is more effective than curtailing on many customers but with a small volume, to minimize the reduction in gross margin.

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