Design of LNG networks

Design of LNG networks

Co-applicant

Subsidy from: Dinalog
Time period: 2013-2016
Budget : €1.2 million (RUG part: €766,000)

Consortium partners: University of Groningen (main applicant I.F.A. Vis), TU Eindhoven, Gasunie, Vopak, Ecos-Energy BV, Stichting Ubbo Emmius Fonds, Groningen Seaports, Stichting Energy Valley, Feederlines, IMS, Oliehandel Klaas de Boer BV, GDF Suez.

LNG will become a prime fuel for ships and trucks in the foreseeable future. The European Union and national governments have outlined their policies, and many companies are preparing for a transition period towards intensive use of LNG. There is a strong need in industry for the development of the building blocks needed to develop their business cases. We develop these building blocks, some business cases, as well as methods for planning and control of the logistics in LNG synchromodal transportation networks.

The main objective is to derive solution approaches to design LNG synchromodal transportation networks and tools for planning of transportation and replenishment operations to enable accessibility and efficient usage of this type of fuel for all modes of transport. Market identification, demand forecasts, economic analyses and business cases are intended outcomes of this study. The developed knowledge base on LNG-specific aspects in logistics can strengthen the development efforts of the sector in The Netherlands and can aid to position Dutch companies at the frontier of development of LNG networks in Europe.

Due to changes in European laws, an increased usage of LNG as fuel for ships, barges and trucks is to be expected. Currently, we notice a lack of infrastructure in The Netherlands as well as neighbouring countries. New methods and approaches are to be designed to create the required infrastructure to enable high accessibility for all users as well as the efficient planning of replenishment and refuelling operations. To this end we will define, study and solve entirely new classes of multi-modal inventory-routing problems and dynamic direct delivery routing problems.

As part of the Green Deal LNG Rhine and Wadden, the goal for 2015 is to have at least 50 barges, 50 sea vessels and 500 trucks use LNG. The results of this project can directly be used by participating companies and others to make their investment decisions in the process of the network creation in The Netherlands and beyond. Tools developed will be pivotal in the earlier investment stage, as well as in achieving operational efficiency later on. To reach these goals, this project unites representatives of all relevant stakeholders in the LNG supply chain: production of bio LNG (Ecos Energy B.V.); infrastructure (Gasunie, Vopak); refuelling stations (GDF Suez); locations for establishing business (Groningen Seaports; Nederlandse Vereniging van Binnenhavens), ship-to-ship supply (Oliehandel Klaas de Boer); government (via Energy Valley Foundation); users (Feederlines, IMS, Jan de Rijk Logistics) and is supported by the National LNG Platform (with Shell Nederland, Port of Rotterdam and others as its participants).