Optimization of the route of distribution of LNG using small scale LNG carrier: A case study of a gas power plant in the Sumatra Region, Indonesia

In this study, the distribution of LNG for power plants in the islands was designed using the small-scale LNG carrier in the Sumatra region of Indonesia. It was further optimized through the use of the capacitated vehicle routing problem in order to maximize shipload. The research input variables were LNG requirements from receiving terminals, carriers with variations in loading capacity, and distribution distance. The calculation results showed 93 alternative routes with 3 different carrier capacities. The best combination of routes and cargo were found to be 7,500 cbm carrier with route Arun - Sabang - Lampung - Arun, 5,000 cbm carrier with route Arun - Nias - Belitung - Arun, and 2,513 cbm carrier with route Arun - Bangka - Arun. The economic analysis showed that annual USD 74,346,340 capital expenditure and USD 33,704995 operational expenditure at least results in an LNG sales price margin of USD 6.5/mmbtu.