Optimization of the risk-based small-scale LNG supply chain in the Indonesian archipelago
Rossy Armyn Machfudiyanto,
Fadhilah Muslim,
Windra Priatna Humang,
Nurul Wahjuningsih,
Insannul Kamil,
Mohammad Ichsan,
Yanuar Yudha Adi Putra
Affiliations
Rossy Armyn Machfudiyanto
Department of Civil Engineering, Faculty of Engineering, Universitas Indonesia, Kampus Baru UI Depok, West Java, 16424, Indonesia
Fadhilah Muslim
Department of Civil Engineering, Faculty of Engineering, Universitas Indonesia, Kampus Baru UI Depok, West Java, 16424, Indonesia
Windra Priatna Humang
Research Center for Transportation Technology, National Research and Innovation Agency, Tangerang Selatan, 15314, Indonesia; Study Program of Transportation Engineering, Graduate School of Hasanuddin University, Makassar 90245, Indonesia; Corresponding author. Research Center for Transportation Technology, National Research and Innovation Agency, Tangerang Selatan, 15314, Indonesia.
Nurul Wahjuningsih
Faculty of Civil and Environmental Engineering, Institut Teknologi Bandung, Bandung, 40132, Indonesia
Insannul Kamil
Department of Industrial Engineering, Faculty of Engineering, University of Andalas, Kampus Limau Padang, 25163, Indonesia
Mohammad Ichsan
Management Program, BINUS Business School Undergraduate Program, Bina Nusantara University, Jakarta, 11480, Indonesia
Yanuar Yudha Adi Putra
Department of Civil Engineering, Faculty of Engineering, Universitas Indonesia, Kampus Baru UI Depok, West Java, 16424, Indonesia
The electricity supply in Indonesia is considered inefficient, as indicated by the increase in the Cost of Generation Provision (CGP) in the 2016–2021 period. Indications of high supply chain risks are not commensurate with the low demand for LNG. Nevertheless, every power plant on small islands must be served by minimizing costs. This study aims to develop a risk-based small-scale supply chain model to distribute LNG in archipelagic areas by minimizing infrastructure costs, including investment and operations. This paper formulates a risk-based small-scale LNG (SS-LNG) model with milk runs, which are rarely applied in LNG supply chains, thus impacting cost efficiency and the sustainability of LNG supply in Indonesia. The simulation was carried out using the vehicle routing problem with milk run (VRPMR) method. The optimization results show that the 2-vessel scheme is an optimal and efficient risk-based SS-LNG supply chain model. However, it appears that changing the scheme from 1 to 2 vessels generally increases the infrastructure tariff by 3%, or USD 0.11 per MMBTU. This risk-based supply chain model is able to ensure a fuel cost efficiency of 27% for power plants.
