LNG Transportation for Gas Power Plants with Small LNG Ships

Abstract

The presence of electrical power is crucial for driving Indonesia’s economic expansion. The National Electricity Company’s initiative, the 35000 MW Electricity Program, aims to construct numerous power plants across the nation, including in Eastern Indonesia where gas-fired plants are planned. Consequently, optimizing liquefied natural gas (LNG) distribution through maritime transport becomes imperative. This study investigates LNG distribution utilizing mini-LNG vessels, influenced by factors such as geographical conditions and demand volume. Employing a blend of greedy algorithms and linear programming, the research tackles the Capacitated Vehicle Routing Problem to minimize distribution expenses while considering route efficiency and vessel capacities. Ship dimensions are subsequently determined through statistical analysis and economic evaluations, factoring in financial viability parameters. Findings reveal that the optimal ship capacity for the designated cluster is 5000 cubic metric, with a velocity of 16 knots. Economic analysis indicates that the investment is financially viable if the LNG sales price margin remains above US$ 4/MMBTU.