Design of small LNG supply chain by multi-period optimization

A mathematical model for the design of small-scale supply chains for liquefied natural gas (LNG) has been developed. It considers the maritime delivery of LNG from supply ports to satellite terminals and land-based transports from the terminals to consumers on or off the coast. Both tactical and strategic aspects in the supply chain design are addressed by optimizing the maritime routing of a heterogeneous fleet of ships, truck connections, and the locations of the satellite terminals. The objective is to minimize the overall cost, including operation and investment costs for the selected time horizon. The model is expressed as a mixed-integer linear programming problem, applying a multi-period formulation to determine optimal storage sizes and inventory at the satellite terminals. Two case studies illustrate the model, where optimal LNG supply chains for a region with sparsely distributed island (without land transports) and a coastal region at a gulf (with both sea and land transports) are designed. The model is demonstrated to be a flexible tool suited for the initial design and feasibility analysis of small-scale LNG supply chains.