University of Groningen
Supply chain design and planning for LNG as a transportation fuel
Lopez Alvarez, Jose
DOI:
10.33612/diss.131459842
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Publication date: 2020
Link to publication in University of Groningen/UMCG research database
Citation for published version (APA):
Lopez Alvarez, J. (2020). Supply chain design and planning for LNG as a transportation fuel. University of Groningen, SOM research school. https://doi.org/10.33612/diss.131459842
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Propositions
accompanying the PhD thesis
Supply chain design and planning for LNG
as a transportation fuel
by
Jos´e Alejandro L ´opez ´
Alvarez
1. The deployment of an overarching distribution network for LNG as a fuel is capital intensive. Establishing such a network would translate into high prices to the end-users, which would discourage the adoption of the fuel in society. (Chapter 2)
2. While technically feasible, technologies to upgrade the quality of LNG at small scale facilities are often not wise from an economical view-point. In this context, mixing LNG is potentially an effective mecha-nism to mitigate quality issues. (Chapters 3 & 4)
3. Under highly uncertain demand levels, optimal control policies for LNG facilities can greatly benefit from the removal of LNG invento-ries when the quality is low. An alternative use to the removed LNG could be to sell it as (compressed) natural gas. (Chapter 5)
4. Given that the quality of bio-LNG is superior to that of any fossil LNG in the market, a promising business model for this sustainable fuel in the short/medium term is to serve as a quality additive for fossil LNG. 5. Although LNG end-users may experience hidden costs (e.g. efficiency loss) when using low-quality LNG for their vehicles, these costs may be outweighed by the overall supply chain expenses required to ensure that the quality of the LNG offered in the market is acceptable.
6. Attempting to close the gap with reality can often be much more valu-able than closing the optimality gap.