Supply Chain Optimization for the Liquefied Natural Gas Business

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.

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Pengukuran Produktivitas Supply Chain Management Liquefied Natural Gas di PT. X (Persero) dengan Metode Objective Matrix dan Analytical Hierarchy Process

INOBIS Jurnal Inovasi Bisnis dan Manajemen Indonesia ◽

10.31842/jurnal-inobis.v3i1.126 ◽

2019 ◽

Vol 3 (1) ◽

pp. 136-152

Author(s):

Dwi Nurma Heitasari ◽

Ibnu Lukman Pratama ◽

Melda Anggra Puspita

Keyword(s):

Supply Chain ◽

Supply Chain Management ◽

Natural Gas ◽

Analytical Hierarchy Process ◽

Performance Indicators ◽

Liquefied Natural Gas ◽

Supply Chain Performance ◽

Chain Management ◽

Fishbone Diagram ◽

Hierarchy Process

PT. X (Persero) merupakan perusahaan yang bergerak di bidang jasa logistik dalam sektor energi. Salah satu pelayanan jasa logistik PT. X (Persero) adalah penyediaan penyewaan jasa fasilitas midstream supply chain untuk produk Liquefied Natural Gas (LNG). Guna menciptakan supply chain logistik energi yang efisien, pengukuran produktivitas Supply Chain Management (SCM) tentu menjadi komponen yang sangat fundamental. Dalam rangka mendukung proses tersebut, dilakukan scoring system dengan metode Objective Matrix (OMAX) dan pembobotan dengan metode Analytical Hierarchy Process (AHP). Parameter pengukuran produktivitas SCM yang digunakan adalah empat proses inti dalam Supply Chain Operations Reference (SCOR), yakni plan, source, make, dan deliver, serta 16 Key Performance Indicators (KPI) perusahaan. Hasil dari penelitian ini menunjukkan bahwa indeks produktivitas untuk proses inti plan dan deliver pada tahun 2019 telah mencapai target yang ditetapkan dengan angka pencapaian 1000%. Sementara untuk proses inti source dan make, terjadi fluktuasi indeks produktivitas yang signifikan karena adanya beberapa pencapaian KPI yang menyimpang. Sehingga, dalam penelitian ini, dilakukan penelusuran sebab akibat terjadinya permasalahan, serta pemberian rekomendasi terkait upaya peningkatan dengan penyusunan fishbone diagram berdasarkan pendekatan manpower, machine, mother nature, material, method, dan measurement. Kata Kunci: Produktivitas, Supply Chain, Performance Indicators

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Supply Chain Risk Management in Liquefied Natural Gas (LNG): Focus on LNG Terminal at Port

10.16980/jitc.13.5.201710.691 ◽

2017 ◽

Vol 13 (5) ◽

pp. 691-711

Author(s):

Sung-Woo Cho ◽

Keyword(s):

Risk Management ◽

Supply Chain ◽

Natural Gas ◽

Liquefied Natural Gas ◽

Supply Chain Risk Management ◽

Supply Chain Risk

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Optimizing liquefied natural gas terminal design for effective supply-chain operations

International Journal of Production Economics ◽

10.1016/j.ijpe.2007.02.028 ◽

2008 ◽

Vol 111 (2) ◽

pp. 529-542 ◽

Cited By ~ 10

Author(s):

Ertunga C. Özelkan ◽

Alfred D’Ambrosio ◽

S. Gary Teng

Keyword(s):

Supply Chain ◽

Natural Gas ◽

Liquefied Natural Gas ◽

Terminal Design

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A Coordinated Approach for Supply-Chain Tracking in the Liquefied Natural Gas Industry

Sustainability ◽

10.3390/su10124822 ◽

2018 ◽

Vol 10 (12) ◽

pp. 4822 ◽

Cited By ~ 4

Author(s):

Jun Wang ◽

Hung-Lin Chi ◽

Wenchi Shou ◽

Heap-Yih Chong ◽

Xiangyu Wang

Keyword(s):

Supply Chain ◽

Natural Gas ◽

Process Development ◽

Liquefied Natural Gas ◽

Chain Process ◽

Multiple Stakeholders ◽

Gas Industry ◽

Framework Technology ◽

Natural Gas Industry ◽

Supply Chain Process

With the increased size and complexity of liquefied natural gas (LNG) projects, supply-chain management has become a challenging process due to involvements of the remote location of the project site and the multiple stakeholders. The transparency and traceability of the supply-chain are critical as any surpluses or shortages of materials will put the project at risk. Currently, limited research has been conducted on LNG projects considering the total supply-chain perspective, which refers to all stages of materials tracking in off-site manufacturing, transportation, and site logistics. The purpose of this research is to propose a framework of a coordinated approach for supply-chain tracking in the LNG industry. Two focus group studies were organized to develop the proposed framework: One for LNG construction supply chain process development, and another for alternative tracking technologies selection. In addition, two experiments, namely off-site fabrication tracking and site logistics tracking, were conducted in a field to evaluate the feasibility of the proposed framework. Technology limitations were also discussed in terms of field implementation.

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CASE STUDY ON SUBCONTRACTING ARRANGEMENTS IN THE SCAFFOLDING SUPPLY CHAIN OF A LIQUEFIED NATURAL GAS INFRASTRUCTURE PROJECT

Journal of Civil Engineering and Management ◽

10.3846/13923730.2017.1388277 ◽

2017 ◽

Vol 23 (8) ◽

pp. 1136-1147 ◽

Cited By ~ 3

Author(s):

Robert LOPEZ ◽

Heap-Yih CHONG ◽

Sungkon MOON ◽

Xiangyu WANG

Keyword(s):

Quality Assurance ◽

Supply Chain ◽

Natural Gas ◽

Current Practice ◽

Liquefied Natural Gas ◽

Cost Benefits ◽

Project Completion ◽

Infrastructure Project ◽

And Control

The objective of the study presented in this paper is to determine the characteristics of the scaffolding supply chain in a liquefied natural gas (LNG) infrastructure project. This research is significant as the outsourcing of scaffolding is integral to its use and productivity toward LNG infrastructure project completion. As such, this paper presents the research undertaken on the subcontracting of scaffold manufacturing, supplying and delivering. It focuses upon the organisations, management and control in scaffolding subcontracting. A comparative analysis of three organisations was carried out to reveal issues with current practice in manufacturing, supplying and delivering scaffold products for assembly onsite. Their management and control approaches are also compared and contrasted. It is found that, while the divided contract approach may help save costs, enhance market exposure and is ideal when choice of subcontractor is limited, its risks can impact upon the entire project and be difficult for the contractor to control. The limited background in scaffolding studies and importance of subcontracting within LNG infrastructure projects has made this research timely. This paper identifies issues in relation to quality assurance, warranties and rework, which have the potential to mitigate any cost benefits obtained from subcontracting practices within this supply chain.

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