In the vast archipelago of Indonesia, getting liquefied natural gas (LNG) to where it’s needed most isn’t a walk in the park. Remote islands, limited infrastructure, and safety risks make distributing small-scale LNG (SS-LNG) a complex puzzle. But a recent study, led by Rossy Armyn Machfudiyanto from the Department of Civil Engineering at Universitas Indonesia, is offering some promising solutions.
Published in the journal ‘Cleaner Logistics and Supply Chain’ (translated from Indonesian), the research tackles the unique challenges of SS-LNG distribution in Indonesia. The team, which included 32 experts from both academia and industry, used the Delphi method to reach a consensus on the best supply chain schemes and risk mitigation strategies.
So, what’s the big deal? Well, the study identified a model that’s particularly adaptable to Indonesia’s geography. It involves multi-source routes, small-scale vessels, terminal clustering, and contractual flexibility. In plain English, this means using multiple suppliers, smaller ships, grouping terminals together, and flexible contracts to make the supply chain more resilient.
But it’s not just about the model. The research also outlines comprehensive mitigation strategies to minimize risks at every stage. This includes adjusting work practices, developing early warning systems, establishing alternative routes, contingency planning, optimizing order policies, and enhancing supply flexibility.
According to Machfudiyanto, “The unique contribution of this study lies in its application of a contextualized risk-based approach tailored to Indonesia’s geography, alongside innovations in terminal clustering, multi-source LNG integration, swap mechanisms, and the incorporation of real-time monitoring technologies to ensure efficiency and transparency across all stages of SS-LNG distribution.”
For the maritime sector, this research opens up significant opportunities. The focus on small-scale vessels and terminal clustering could drive demand for new types of ships and infrastructure. Meanwhile, the emphasis on real-time monitoring technologies could spur innovation in maritime tech.
Moreover, the study highlights the importance of integrating technical, regulatory, and sustainability aspects in designing SS-LNG supply chains. This holistic approach could pave the way for more adaptive energy policies and long-term economic evaluation.
In essence, this research isn’t just about solving a logistical challenge. It’s about creating a more reliable, sustainable, and efficient SS-LNG supply chain that benefits everyone involved. And for maritime professionals, it’s a call to action to innovate, adapt, and seize the opportunities that lie ahead.