Designing a decision support model for the LNG market

Steve Engelen*, Wout Dullaert

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review


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.

Original languageEnglish
Pages (from-to)719-731
Number of pages13
JournalTransportation Planning & Technology
Issue number8
Publication statusPublished - Dec 2010


  • Industrial shipping
  • LNG market
  • Planning tool
  • Ship market modelling


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