Capacitated Vehicle Routing Problem Optimization for Bali and Nusa Tenggara Natural Gas Distribution

Abstract

Utilization of gas as an energy source has become a principal issue in recent years. The Minister of Energy and Mineral Resources of the Republic of Indonesia have a plan to guarantee national energy security and improve the national trade balance, as well as accelerate the use of gas in the electricity sector. The Ministry of Energy and Mineral Resources issued a regulation to conduct the gasification process at 52 power plants in Indonesia through Ministerial Decree No. 13K of 2020. In this study, LNG distribution was designed using the Capacitated Vehicle Routing Problem (CVRP) method to minimize the transportation costs and optimal use of the fleet. The vehicles used have a limited capacity and can supply all demands at nine power plants in the Bali and Nusa Tenggara regions. In the distribution there is also have a Hub which purpose to reduce the distance travelled by a ship. The ships that will be used are Mini LNG-Carrier for the route from the LNG refinery to HUB, LCT ship for the route from HUB to each port near the power plant, and ISO Tank transport truck for the route from the port to the plant. The distribution uses four Vessel 1, and one LCT 300 vessel, with Hubs located in Benoa and Flores, and two Mini LNG-Carriers with a capacity of 15,600 m3 to Benoa and 10,000 m3 to Flores. The total cost for this scenario is US$ 51,398,568, with a minimum sales margin of US$ 2.5 per MMBTU.