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Planning Annual LNG Deliveries with Transshipment

Author

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  • Mingyu Li

    (Department of Industrial Economics and Technology Management, Norwegian University of Science and Technology, 7491 Trondheim, Norway
    These authors contributed equally to this work.)

  • Peter Schütz

    (Department of Industrial Economics and Technology Management, Norwegian University of Science and Technology, 7491 Trondheim, Norway
    These authors contributed equally to this work.)

Abstract

The introduction of transshipment ports in the liquefied natural gas (LNG) supply chain in recent years offers additional flexibility, but also challenges to the planning of the annual delivery program. We present a new variant of the LNG-annual delivery program (ADP) planning problem by considering transshipment as well as time-dependent sailing times. We present a continuous time formulation for the LNG-ADP problem and propose a rolling horizon heuristic to solve the problem. Both the model and heuristic were used to solve a case inspired by the Yamal LNG project. The computational results show that the heuristic provides good solutions within a relatively short amount of time, especially compared to the exact solution methods. However, there is a trade-off between computational time and solution quality when designing the rolling horizon heuristic. The results also show the impact storage capacity at the transshipment port has on the total cost.

Suggested Citation

  • Mingyu Li & Peter Schütz, 2020. "Planning Annual LNG Deliveries with Transshipment," Energies, MDPI, vol. 13(6), pages 1-24, March.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:6:p:1490-:d:335355
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    References listed on IDEAS

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    3. Mingyu Li & Kjetil Fagerholt & Peter Schütz, 2023. "Maritime inventory routing with transshipment: the case of Yamal LNG," Flexible Services and Manufacturing Journal, Springer, vol. 35(1), pages 269-294, March.
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