Optimization problems in liquefied natural gas transport and storage for multimodal transport companies

Abstract

As a relatively clean energy source, liquefied natural gas (LNG) is experiencing a growing demand. The uneven global distribution of LNG often compels residents in regions without local sources to import it, underscoring the need to optimize the global LNG transportation network. Therefore, this study formulates a nonlinear mixed-integer programming model for a multimodal transport and storage problem to optimize LNG carrier allocation, LNG storage planning, and LNG transport planning, aiming to minimize the total cost of multimodal transport, minus the rewards offered by ports. In order to facilitate the solving of the model, some linearization methods are used to transform the nonlinear model into a linear model. To assess the efficiency of the linear model, we conduct computational experiments on small-scale instances with five inland cities, medium-scale instances with 15 inland cities, and large-scale instances with 60 inland cities. The results show that all small- and medium-scale instances can be solved to optimality within 427.50 s. Feasible solutions with a maximum gap value of 0.03% for large-scale instances can be obtained within 1 h. In addition, sensitivity analyses are conducted to identify the impacts of the cost of transporting LNG by vehicles, the charter cost of LNG carriers, and the rewards for shipping LNG. In general, higher cost of transporting LNG by vehicles and higher charter cost of LNG carriers lead to a higher objective value. It is also found that when the rewards for shipping LNG increase to a certain extent, such that the additional rewards exceed the additional multimodal transport cost incurred, the amount of LNG unloaded at the subsidized port increases.