Applying Operations Research to Optimize Annual Delivery Program (ADP) in LNG Transport: Opportunities and Challenges

Abstract

Abstract With the trade of Liquefied Natural Gas (LNG) experiencing strong growth in the past decade, the need for better utilization of LNG transport capacity and higher overall efficiency of the LNG supply chain also increases. This paper investigates and discusses the application of Operations Research methods in modeling and optimizing annaul delivery program (ADP) in the LNG export industry. Aiming to generate smooth and safe LNG cargo offtake and dispatch, berthing, delivery, and shipping schedules, based on production predictions, fleet characteristics and delivery contracts, we propose a mathematical optimization model considering LNG production and storage, cargo operations, and shipping simultaneously. A computational study is also conducted to investigate the practically of solving the resulting mixed integer programming problem using a state-of-the-art numerical solver.