Application of Multicriteria Analysis in the Selection of the LNG Terminal Location

Abstract

Positioning of large energy facilities is, as a rule, accompanied by a strong rejection of local and regional communities, without which it is not possible to determine the location and construction conditions for the facility in spatial plans. However, a synergy of three components may enable a successful project realization. Firstly, the application of verified and objective scientific methods for the selection of the most appropriate LNG terminal location. Secondly, the consideration of the best world practices in project documentation preparation for such terminal construction. And lastly, the continuous involvement of the local community into the entire process. The paper presents an approach aimed at solving the problem of choice by applying the methodology of choosing the “best compromise location” based on system characteristics, available data, set criteria, and limitations. The key “dimension” of such a problem is “space”, i.e. the spatial aspects of location selection. The paper provides an overview of the activities, procedures, and methods used to define the optimal location of the receiving LNG terminal in the Republic of Croatia as part of the analysis and research carried out by EKONERG and in the function of creating the Spatial Plan of Primorje-Gorski Kotar County. Accordingly, the main objective of this paper was to highlight the specifics of LNG terminal site selection as well as the possibility of objectively defining the optimal location using the multi-criteria decision-making method that simultaneously takes into account all influential factors and criteria in defining it. The paper uses the methodology of multi-attribute decision process and multicriteria analysis of the selection of the optimal location of the LNG terminal on the territory of Primorje-Gorski Kotar County. It systematically and scientifically analyses, consistently formulates, and proposes elimination and comparative criteria necessary to determine the optimal location of the LNG terminal for the purpose of drafting regional level spatial planning documents. The presented methodology was carried out using the process of multicriteria ranking of variants. The method of weighted sum values was used. Weighting factors are determined partly in an exact way (where possible) and partly based on the application of Delphi group decision-making methods. The methodology was tested on a concrete example of variant analysis for the location of LNG terminals in the Republic of Croatia. By implementing the presented methodology, the location of the northern part of the island of Krk was determined as optimal for the location of the LNG terminal. The aforementioned was implemented in the Spatial Plan of Primorje-Gorski Kotar County, and the first phase of the receiving LNG terminal was built and put into full operation.