Enhancing resilience in the liquefied natural gas supply chain: A focus on chemical supply continuity

Abstract

As the global demand for liquefied natural gas (LNG) surges, its pivotal role in the economy highlights the imperative of a continuous supply chain. This paper underscores the critical need for a resilient LNG supply chain to withstand unexpected disruptions and bolster energy security. Recognizing the intricate nature of the LNG supply chain, this study narrows its focus to fortify the segment from extraction to storage for shipment. We propose a strategic framework to safeguard the uninterrupted availability of essential chemical supplies, whose scarcity could jeopardize the supply chain’s integrity. Our approach integrates risk assessment and a contingency plan tailored to these key chemicals within the specified supply chain segment to explore strategies to bolster the preparedness and resilience of the LNG supply chain, thereby diminishing its susceptibility to unforeseen external shocks and ensuring robust decision-making in the energy sector. In illustrating the application of our framework, we concentrate on Qatar as a case study. LNG supply chain risk analysis is conducted using a Hazard and Operability analysis. Risk analysis identifies 50 supplies in the LNG supply chain. Using a clustering algorithm, eight critical supplies were identified. We assess these 50 chemical supplies based on multiple criteria, including their effect on the continuity of LNG flow, the quality of LNG, the storage requirements, and the number and location of their suppliers. Utilizing the K-means clustering algorithm, we categorize these supplies and pinpoint the most critical ones. The paper then outlines mitigation strategies that synergize conventional methods with Industry 4.0 technologies.