Shipping cost feasibility of LNG distribution with multiple island gas power plant destinations

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Budiyanto, Muhammad Arif and Novrian, Gigin Rizki and Riadi, Achmad and Putra, Gerry Liston and Gunawan and Theotokatos, Gerasimos (2025) Shipping cost feasibility of LNG distribution with multiple island gas power plant destinations. Frontiers in Energy Research, 13. 1502518. ISSN 2296-598X (https://doi.org/10.3389/fenrg.2025.1502518)

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Abstract

The demand for sustainable energy is increasing along with the increasing population in the archipelago. Liquefied natural gas (LNG) is a clean, high-efficiency energy source. The aim of this paper is to conduct a shipping cost feasibility of LNG distribution for gas power plants located in multi-island areas. In this study, small-scale LNG carrier vessels with a capacity of under 10,000 m3, which have a shallow draft, are used to distribute LNG supplies to locations with limited berth depth. The shipping route optimization method used is the capacitated vehicle routing problem combined with linear programming and a greedy algorithm with an objective function to maximize the ship’s load capacity. A shipping cost feasibility is carried out on financial assessment based on the construction of new ships and analysis of world gas prices. The results of this study obtained two route options to be supplied using two ships, 7,500 m3 and 3,587 m3, respectively, with an average speed of 13 knots. Based on the optimum route, the remaining cargo is 3.3% of the ship’s total capacity. The economic analysis shows the feasibility of LNG distribution when the selling price is at least USD 5/MMBtu with a payback period of 9 years.

ORCID iDs

Budiyanto, Muhammad Arif, Novrian, Gigin Rizki, Riadi, Achmad, Putra, Gerry Liston, Gunawan and Theotokatos, Gerasimos ORCID logoORCID: https://orcid.org/0000-0003-3547-8867;
CORE (COnnecting REpositories)