Purpose The purpose of this paper is to improve the tactical planning of the stakeholders of the midstream liquefied natural gas (LNG) supply chain, using an optimisation approach. The results can contribute to enhance the proactivity on significant investment decisions. Design/methodology/approach A decision support tool (DST) is proposed to minimise the operational cost of a fleet of vessels. Mixed integer linear programming (MILP) used to perform contract assignment combined with a genetic algorithm solution are the foundations of the DST. The aforementioned methods present a formulation of the maritime transportation problem from the scope of tramp shipping companies. Findings The validation of the DST through a realistic case study illustrates its potential in generating quantitative data about the cost of the midstream LNG supply chain and the annual operations schedule for a fleet of LNG vessels. Research limitations/implications The LNG transportation scenarios included assumptions, which were required for resource reasons, such as omission of stochasticity. Notwithstanding the assumptions made, it is to the authors’ belief that the paper meets its objectives as described above. Practical implications Potential practitioners may exploit the results to make informed decisions on the operation of LNG vessels, charter rate quotes and/or redeployment of existing fleet. Originality/value The research has a novel approach as it combines the creation of practical management tool, with a comprehensive mathematical modelling, for the midstream LNG supply chain. Quantifying future fleet costs is an alternative approach, which may improve the planning procedure of a tramp shipping company.
The objective of this paper was to propose a functional simulation model for the operation of floating storage and regasification units (FSRUs) used for the import of liquefied natural gas (LNG). The physical operation of an FSRU is decomposed for each critical component of the LNG carrier (LNGC) and the FSRU, in order to construct a realistic model in Simulink. LNG mass balance equations are used to perform flow calculations from the tanks of an LNG carrier to the tanks of the FSRU and from there to shore. The simulation model produces results for cases, when multiple LNG carriers discharge cargoes during a monthly time horizon. This produces an accurate operational profile for the FSRU with information about the volume of LNG inside each of the cargo tanks of the FSRU, LNG cargo discharging and gas send-out rate. Potential practitioners may exploit the proposed planning tool to explore the feasibility of alternative operation scenarios for an FSRU terminal. The simulations can check the system sensitivity to different parameters and support schedule regarding: (i) slots for LNG carrier calls, (ii) LNG inventory fluctuation, and (iii) impact of gas demand and send-out rate changes.
Liquefied Natural Gas (LNG) industry is a typical example for which various business models, strategies, and affiliated interests exist, making it highly complex in terms of operations. The extended supply chain, from liquefaction to regasification, combined with multilateral contractual relationships that crossover, make efficient operation a challenging task. Considering barriers such as the volume of transactions, communication hurdles, etc., and the lack of contemporary management tools by shipping companies contrary to other industries, the paper proposes a model structure based on Business Process Modelling (BPM). The proposed BPM concept offers a holistic view of company organization and operations, as well as enables control of key performance indicators. Implementing intelligent computer systems to model an inter-organizational business environment to highlight and overcome such problems, is the ultimate goal of the study. This paper offers a coherent perspective of business process visualization across the midstream section of the LNG supply chain, including roles, tasks and resources. The research highlights commonly used business models, the contractual framework, and the physical processes. The volume of the information leads to knuckle points and dysfunctions related to time, transparency and work assignment. It is underlined that the occurring issues relate to the nature of LNG projects, business policies, safety and compliance issues, document transaction load and mishandling, disputes over SPAs, as well as to subjects of goodwill and partnership, unstandardized procedures executed empirically, and concurring office intervention. The aim of the study is the identification of the aforementioned problems that prevent an LNG shipping company from extracting the added value from its operation.
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