Client: One of the world’s largest LNG producers
Services: Develops, produces and markets hydrocarbons. Annual LNG production of close to 80 million tonnes per year
Geographies: Primarily the Middle East
The LNG major needed to address one tactical and two operational challenges. One was to do with planning and scheduling, and the other two were to do with voyage management and terminal operations.
They did not have an efficient tool to manage complex planning and scheduling that involved creation of production and delivery plans for all products. The planning and scheduling was needed to manage the supply chain, storage and loading facilities. It took them 75 days to prepare annual delivery plans using spreadsheets for data compilation and the more than 2-month timeframe was detrimental to their annual tactical plan execution.
The LNG major also faced some operational challenges related to terminal operations. Their tank farm had common storage for LNG and other products, and they used trains from different ventures within the company for deliveries to the tank farm. The contracts were by train capacity. When any venture-owned train was shut down, an agreement between the ventures would adjust for the change, calling for a separate accounting process. In addition, each venture had limited storage for products. This meant any change in storage/trains would mean an adjustment in production to minimize excess payment for storage
On the other hand, the LNG major was shopping for a tool to address vessel scheduling for shipping LNG to their customers. The special-purpose cryogenic LNG vessels used by the industry could only deliver cargo and could not carry any return cargo. The vessels used the cargo itself as fuel and had to compensate for boil off gas. After factoring in weather conditions, passage requirements for the Suez Canal and berth feasibility checks prior to each journey, shipping and voyage optimization and management became a complex task.