LNG Bunkering Station Deployment Problem—A Case Study of a Chinese Container Shipping Network

Abstract

Liquefied natural gas (LNG) is a promising measure to reduce shipping emissions and alleviate air pollution problem, especially in coastal areas. Currently, the lack of a complete infrastructure system is preventing the extensive application of dual-fueled ships that are mainly LNG-powered. Given that groups of LNG bunkering stations are under establishment in various countries and areas, the construction plan becomes critical. In this paper, we focus on the LNG bunkering station deployment problem, which identifies the locations of the stations to be built. A large-scale case study of China’s container shipping network was conducted. The problem scale of this case paper exceeds those in previous academic studies. Thus, this study better validates the model and solution method proposed than numerical experiments that are randomly generated. Sensitive analyses on the LNG price, bunkering station construction costs, and total budget were carried out. The results yielded provide practical suggestions and managerial insights for the competent department. In addition to building a complete bunkering system, subsidies to ship operators for consuming LNG and higher production efficiency in bunkering station construction also help promote the application of LNG as marine fuel.