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University of Groningen Supply chain design and planning for LNG as a transportation fuel Lopez Alvarez, Jose

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University of Groningen

Supply chain design and planning for LNG as a transportation fuel

Lopez Alvarez, Jose

DOI:

10.33612/diss.131459842

IMPORTANT NOTE: You are advised to consult the publisher's version (publisher's PDF) if you wish to cite from it. Please check the document version below.

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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.

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