Because of a dramatic increase in US natural gas production, exporting natural gas has become economically attractive. To capitalize on the opportunity, an LNG receiving and regasification terminal operator expanded its terminal in Texas to enable liquefaction and export of approximately 2.0 billion cubic feet per day of U.S.-produced natural gas in the form of liquid natural gas (LNG). The terminal will retain its ability to import LNG if it is needed for the domestic market.
Fully built, the proposed expansion will require over $14 billion in direct investment and will employ more than 3,500 workers during a four to five-year construction period. In addition, the plant will create thousands of jobs related to the production of the natural gas that will supply the liquefaction project. The increase in natural gas production is also estimated to provide between $5.1 billion and $7.4 billion in total annual economic benefits to the U.S.
The export of LNG is a complex process with several sub processes that must work in seamless concert with one another. To manage these processes, a complex software solution is needed.
This software needed to flawlessly manage the constant flow of gas into the liquefaction plant, logistics of ships coming into one shared port at a specific time and date requiring a specific amount of LNG, the onboarding of the LNG, and the departure of the ship to be replaced by the next ship in line. Any delay caused by scheduling mishaps, inadequate gas supply, or meager LNG production could cost an LNG operator millions in charges for delaying other ships, or demurrage fees. Likewise, any oversupply would have to be burned off, costing millions in lost product. As a result, the ROI for leveraging software to eliminate scheduling and supply errors is enormous.
Ceremity assembled a team of experts to collaborate with the LNG operator and develop the solution that would allow them to lead the country in efficient natural gas export.
The resulting scheduling and logistics software pulls data points from multiple data sources and presents them in a user-friendly manner allowing users to perform what-if scenarios and perform analytics. For example, if one delivery is rescheduled, users can easily understand the impact on the supply of LNG and mitigate any potential losses.
Ultimately, the software will eliminate errors in logistics planning, resulting in an additional $3 billion in revenue for Freeport LNG.