TY - JOUR
T1 - Designing a decision support model for the LNG market
AU - Engelen, Steve
AU - Dullaert, Wout
PY - 2010/12
Y1 - 2010/12
N2 - As the Liquefied Natural Gas (LNG) market is supply-driven and subject to longterm contracts, both liquefaction companies and shipowners need to make strategic decisions on fleet chartering requirements. These planning decisions become ever more difficult in light of the transformations permeating the LNG market, propelling into a more competitive market with more flexible trades and expanding spot markets. The overcapacity of LNG ships during 2008-2009 triggered by massive overcontracting is a good case in point where the use of decision support models would have been beneficial, especially considering the fortunes and risks at stake. In this paper we present an LNG shipping model that effectively supports decision-making in practice. To demonstrate the value added of the model, we study the implications of LNG project delays and increased decommissioning of ships with respect to market balance and fleet requirements.
AB - As the Liquefied Natural Gas (LNG) market is supply-driven and subject to longterm contracts, both liquefaction companies and shipowners need to make strategic decisions on fleet chartering requirements. These planning decisions become ever more difficult in light of the transformations permeating the LNG market, propelling into a more competitive market with more flexible trades and expanding spot markets. The overcapacity of LNG ships during 2008-2009 triggered by massive overcontracting is a good case in point where the use of decision support models would have been beneficial, especially considering the fortunes and risks at stake. In this paper we present an LNG shipping model that effectively supports decision-making in practice. To demonstrate the value added of the model, we study the implications of LNG project delays and increased decommissioning of ships with respect to market balance and fleet requirements.
KW - Industrial shipping
KW - LNG market
KW - Planning tool
KW - Ship market modelling
UR - http://www.scopus.com/inward/record.url?scp=78650050813&partnerID=8YFLogxK
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U2 - 10.1080/03081060.2010.527183
DO - 10.1080/03081060.2010.527183
M3 - Article
AN - SCOPUS:78650050813
SN - 0308-1060
VL - 33
SP - 719
EP - 731
JO - Transportation Planning & Technology
JF - Transportation Planning & Technology
IS - 8
ER -