An Application: A Multi-Mode Natural Gas and Liquefied Natural Gas Supply Chain Management Problem

Abstract

Natural Gas (NG) and Liquefied Natural Gas (LNG) are environmentally friendly and price-competitive energy resources that can be used in every part of the world. In this study, we develop a mixed-integer programming model for the NG and LNG supply chain that includes the location of liquefaction plants, regasification units, storage facilities, and distribution hubs together with the routing of the vehicles for inland distribution of LNG and cryogenic vessels for sea transportation. Unlike other models in the literature, the location of the NG and LNG facilities and routing of vehicles of different modes are optimized by considering the minimization of costs by using the 𝜺 – Constraint method, and different transportation modes, like sea, road, and pipeline, are used together for better effectiveness and cost reduction. The developed model is applied to Turkey to check whether the model is viable for real-world systems