Risk Management in the LPG Refrigerated Green Terminal Project for Sustainable Development Goals

Abstract

The LPG Refrigerated Green Terminal Project for Sustainable Development Goals seeks to enhance national stock resilience and reduce reliance on leased refrigerated LPG floating storage by a State-Owned Oil and Gas Company. Various challenges were encountered throughout the project, including resident demonstrations causing schedule disruptions, delays in project design due to client approval processes, and disparities in land data during tendering and implementation phases, among others. This research aims to identify the most critical risk by assessing the number of priority risks and risk categories. Effective risk management is pivotal in achieving project objectives. The methodology employed encompasses Fault Mode and Effect Analysis (FMEA), a 3D Risk Matrix, and a Pareto Diagram, supplemented by Analytical Hierarchy Process (AHP) software for risk weight determination. The study reveals a minimum Risk Priority Number (RPN) of 6, signifying low-risk severity, infrequent risk occurrence, and the company’s ability to detect these risks. Conversely, the highest RPN is recorded at 36, indicating significant risk severity, frequent risk occurrence, and challenges in risk detection by the company.