TY - JOUR
T1 - Optimization of the risk-based small-scale LNG supply chain in the Indonesian archipelago
AU - Machfudiyanto, Rossy Armyn
AU - Muslim, Fadhilah
AU - Humang, Windra Priatna
AU - Wahjuningsih, Nurul
AU - Kamil, Insannul
AU - Ichsan, Mohammad
AU - Adi Putra, Yanuar Yudha
N1 - Funding Information:
The authors are grateful to the Director of Research and Development of the Universitas Indonesia, the Chairperson of LPPM Bandung Institute of Technology, and the Chairperson of the LPPM Andalas University.
Funding Information:
This study was funded by Riset Kolaborasi Indonesia, with grant number “NKB-1064/UN2.RST/HKP.05.00/2022”, “209/IT1.B07.1/SPP-LPPM/V/2022” and “T/39/UN.16.17/PT.01.03-IS-RKI Skema B (Mitra)/2022”.
Publisher Copyright:
© 2023 The Authors
PY - 2023/8
Y1 - 2023/8
N2 - The electricity supply in Indonesia is considered inefficient, as indicated by the increase in the Cost of Generation Provision (CGP) in the 2016–2021 period. Indications of high supply chain risks are not commensurate with the low demand for LNG. Nevertheless, every power plant on small islands must be served by minimizing costs. This study aims to develop a risk-based small-scale supply chain model to distribute LNG in archipelagic areas by minimizing infrastructure costs, including investment and operations. This paper formulates a risk-based small-scale LNG (SS-LNG) model with milk runs, which are rarely applied in LNG supply chains, thus impacting cost efficiency and the sustainability of LNG supply in Indonesia. The simulation was carried out using the vehicle routing problem with milk run (VRPMR) method. The optimization results show that the 2-vessel scheme is an optimal and efficient risk-based SS-LNG supply chain model. However, it appears that changing the scheme from 1 to 2 vessels generally increases the infrastructure tariff by 3%, or USD 0.11 per MMBTU. This risk-based supply chain model is able to ensure a fuel cost efficiency of 27% for power plants.
AB - The electricity supply in Indonesia is considered inefficient, as indicated by the increase in the Cost of Generation Provision (CGP) in the 2016–2021 period. Indications of high supply chain risks are not commensurate with the low demand for LNG. Nevertheless, every power plant on small islands must be served by minimizing costs. This study aims to develop a risk-based small-scale supply chain model to distribute LNG in archipelagic areas by minimizing infrastructure costs, including investment and operations. This paper formulates a risk-based small-scale LNG (SS-LNG) model with milk runs, which are rarely applied in LNG supply chains, thus impacting cost efficiency and the sustainability of LNG supply in Indonesia. The simulation was carried out using the vehicle routing problem with milk run (VRPMR) method. The optimization results show that the 2-vessel scheme is an optimal and efficient risk-based SS-LNG supply chain model. However, it appears that changing the scheme from 1 to 2 vessels generally increases the infrastructure tariff by 3%, or USD 0.11 per MMBTU. This risk-based supply chain model is able to ensure a fuel cost efficiency of 27% for power plants.
KW - LNG distribution
KW - Milk run
KW - Risk
KW - Small-scale LNG
KW - Supply chain
UR - http://www.scopus.com/inward/record.url?scp=85168364360&partnerID=8YFLogxK
U2 - 10.1016/j.heliyon.2023.e19047
DO - 10.1016/j.heliyon.2023.e19047
M3 - Article
AN - SCOPUS:85168364360
SN - 2405-8440
VL - 9
JO - Heliyon
JF - Heliyon
IS - 8
M1 - e19047
ER -