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Linear Programming Transportation Model For Minimizing The Operating Costs Of Marine CNG Transportation

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Linear Programming Transportation Model For Minimizing The Operating Costs Of Marine CNG Transportation
“The Linear Programming Transportation Model (LPTM) for minimizing the operating costs of marine CNG transportation”
Written by: Muhammad Akram Khan (Doctoral Candidate) (akram_khan@is.pw.edu.pl)
Supervised by: Prof. Dr. Osiadacz Andrzej (Head of Gas Engineering Department)
Warsaw University of Technology
(andrzej.osiadacz@is.pw.edu.pl)
Abstract:
The Marine compressed natural gas (CNG) was initially envisioned to target small volumes of gas located in relatively closed proximity to markets. However, the recent breakthroughs in this technology have suggested, and in some cases validated, marine CNG’s potential to cost effectively ship much larger volumes of gas over much greater distances. The creative solutions have been proposed by many companies for the choice of materials and configuration of gas containers, as well as for container loading and offloading techniques because this part of a marine CNG project consumes almost 70-80% of the investment. But for commercial success of transportation projects it is important to reduce the operating costs as well. The ship’s expenses account for 65-70% of operating
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This remarkable growth in gas demand over the past decade has led to the development and installation of a significant number of gas transportation projects. These baseload projects have focused on the exploitation of relatively large gas reserves, typically 5 Tcf+. [2]. However, the gas markets are now witnessing a structural change, with the emergence of mid markets i.e. regional markets which typically are an aggregate of relatively small gas and LNG trades. Marine CNG has emerged as an alternate to LNG to fulfill the gas demand of these

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