Mathematical Programming-based LNG Tank Operation Formulation Model

Overview

Osaka Gas is working on developing a model that automatically calculates tank operation, which is the key to LNG supply, considering the heating value of LNG, available tank capacity, restrictions on facilities, and changes in demand.

Purpose

LNG transported by ship is first stored in tanks and then sent out according to demand while ensuring the calorific value required by law. However, transported LNG occasionally differs in calorific value, , Therefore, appropriate calorific value control and inventory management should be in place. At present, this tank operation takes time, being formulated by the person in charge. Our aim is to automate it by using mathematical programming.

Overview of LNG tank operation formulation model

Effect

The capability to automatically calculate tank operation will enable the operation to be promptly reviewed in response to changes in LNG carrier allocation plans, problems with receiving terminal equipment, and other events. Consequently, the stability of supply will be improved. It is also expected to reduce tank operation costs, such as those arising from the addition of LPG. Using the constructed model, we plan to carry out calculations under various assumptions so as to optimize LNG trading.