A private developer is implementing an LNG import terminal project. The terminal includes a Floating Storage Unit (FSU) moored offshore; a barge or Offshore Service Vessel (OSV) that transfers ISO containers filled at the FSU to shore; and cranes that transfer the ISO containers from the barge or OSV to trucks that will transport the containers to a regasification facility where gas will be injected into a pipeline system. The developer retained a financial advisor to assist in raising the capital to finance the project. The assignment’s main objective is to analyze the LNG supply chain segment from loading LNG onto ISO containers aboard a barge or OSV to its delivery at the inlet of the regasification facility.

K&M was retained to estimate the optimal number of ISO containers, trucks, chassis trailers, stackers, and mobile cranes; the optimal size of the barge; and the operating cost (fuel, lube oil, tires, personnel, etc.) of the ISO logistics supply chain. Specifically, K&M utilized its existing logistics model for onshore LNG transport and incorporated modifications related to the barge transport from the FSU to the port. K&M also conducted a sensitivity analysis on variables such as diesel prices and useful life of the ISO containers. A report with the results of the analysis and the Excel logistics model was provided to the developer upon completion of the assignment.