Study on the LNG distribution to mobile power plants utilizing small-scale LNG carriers

Muhammad Arif Budiyanto, Achmad Riadi, I. G.N.Sumanta Buana, Gita Kurnia

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)

Abstract

In recent years, the use of small-scale liquefied natural gas (LNG) has grown alongside demand from industrial users of natural gas. Small-scale LNG is an alternative to the supply of natural gas to remote areas with a cost-effectiveness challenge. To address this challenge, five mobile power plants located in remote areas with limited depth of water level in western Indonesia are used here as a case study. The objective of this paper is to optimize LNG distribution using small-scale LNG carriers and carry out an economic analysis in this region. The capacitated vehicle routing problem model was used to optimize the maritime routing of a small-scale LNG supply chain. The maximization of the volume cargo with a given LNG vessel capacity set as the objective function was therefore provided with the optimum inventory routing and economic analysis of the transport of LNG. Cluster 1 serves three power plants with a total demand of 966 m3/day and a distance is 913 Nautical Miles, while cluster 2 serves two power plants with a total demand of 690 m3/day and distance of 1,483 Nautical Miles. Economic analysis of the two clusters shows that there is a minimum difference in the margin rate needed to make it worth the investment, which is 3 USD/MMBTU for cluster 1 and 4 USD/MMBTU for cluster 2. Thus, this paper concludes that the cost of LNG transportation depends on the amount of cargo demand and shipping distances.

Original languageEnglish
Article numbere04538
JournalHeliyon
Volume6
Issue number7
DOIs
Publication statusPublished - Jul 2020

Keywords

  • Energy
  • Energy economics
  • Energy sustainability
  • Industrial energy consumption
  • LNG distribution
  • Natural resource economics
  • Route optimization
  • Small-scale LNG carriers
  • Urban energy consumption

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