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

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-is...

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Main Authors: Muhammad Arif Budiyanto, Gigin Rizki Novrian, Achmad Riadi, Gerry Liston Putra, Gunawan, Gerasimos Theotokatos
Format: Article
Language:English
Published: Frontiers Media S.A. 2025-06-01
Series:Frontiers in Energy Research
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Online Access:https://www.frontiersin.org/articles/10.3389/fenrg.2025.1502518/full
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author Muhammad Arif Budiyanto
Gigin Rizki Novrian
Achmad Riadi
Gerry Liston Putra
Gunawan
Gerasimos Theotokatos
author_facet Muhammad Arif Budiyanto
Gigin Rizki Novrian
Achmad Riadi
Gerry Liston Putra
Gunawan
Gerasimos Theotokatos
author_sort Muhammad Arif Budiyanto
collection DOAJ
description 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.
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publisher Frontiers Media S.A.
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spelling doaj-art-e08f9ca84d154972bd562cbe44ac97412025-08-20T02:23:00ZengFrontiers Media S.A.Frontiers in Energy Research2296-598X2025-06-011310.3389/fenrg.2025.15025181502518Shipping cost feasibility of LNG distribution with multiple island gas power plant destinationsMuhammad Arif Budiyanto0Gigin Rizki Novrian1Achmad Riadi2Gerry Liston Putra3 Gunawan4Gerasimos Theotokatos5Department of Mechanical Engineering, Universitas Indonesia Kampus Baru UI, Depok, Jawa Barat, IndonesiaDepartment of Mechanical Engineering, Universitas Indonesia Kampus Baru UI, Depok, Jawa Barat, IndonesiaDepartment of Mechanical Engineering, Universitas Indonesia Kampus Baru UI, Depok, Jawa Barat, IndonesiaDepartment of Mechanical Engineering, Universitas Indonesia Kampus Baru UI, Depok, Jawa Barat, IndonesiaDepartment of Mechanical Engineering, Universitas Indonesia Kampus Baru UI, Depok, Jawa Barat, IndonesiaNaval Architecture Ocean and Marine Engineering (NAOME), University of Strathclyde, Glasgow, Scotland, United KingdomThe 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.https://www.frontiersin.org/articles/10.3389/fenrg.2025.1502518/fullLNG distributionshipping routesmall-scale LNG carriercapacitated vehicle routing problemshipping cost
spellingShingle Muhammad Arif Budiyanto
Gigin Rizki Novrian
Achmad Riadi
Gerry Liston Putra
Gunawan
Gerasimos Theotokatos
Shipping cost feasibility of LNG distribution with multiple island gas power plant destinations
Frontiers in Energy Research
LNG distribution
shipping route
small-scale LNG carrier
capacitated vehicle routing problem
shipping cost
title Shipping cost feasibility of LNG distribution with multiple island gas power plant destinations
title_full Shipping cost feasibility of LNG distribution with multiple island gas power plant destinations
title_fullStr Shipping cost feasibility of LNG distribution with multiple island gas power plant destinations
title_full_unstemmed Shipping cost feasibility of LNG distribution with multiple island gas power plant destinations
title_short Shipping cost feasibility of LNG distribution with multiple island gas power plant destinations
title_sort shipping cost feasibility of lng distribution with multiple island gas power plant destinations
topic LNG distribution
shipping route
small-scale LNG carrier
capacitated vehicle routing problem
shipping cost
url https://www.frontiersin.org/articles/10.3389/fenrg.2025.1502518/full
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AT achmadriadi shippingcostfeasibilityoflngdistributionwithmultipleislandgaspowerplantdestinations
AT gerrylistonputra shippingcostfeasibilityoflngdistributionwithmultipleislandgaspowerplantdestinations
AT gunawan shippingcostfeasibilityoflngdistributionwithmultipleislandgaspowerplantdestinations
AT gerasimostheotokatos shippingcostfeasibilityoflngdistributionwithmultipleislandgaspowerplantdestinations