- Issues
With rising energy demand in Thailand, liquefied natural gas (LNG) has become a critical component of the country’s energy mix. However, the client faced challenges in managing LNG supply chains efficiently, including high transportation costs, limited storage capacity, and inconsistent supply reliability due to complex import processes. These issues affected Thailand’s ability to maintain steady LNG supplies and meet growing energy requirements, particularly during peak demand periods. The client aimed to optimize the LNG supply chain to reduce costs, improve supply stability, and ensure energy security.
- Solution
Eurogroup Consulting proposed a comprehensive LNG supply chain optimization strategy focusing on transportation logistics, storage expansion, and supply chain digitalization. The solution included the implementation of predictive analytics for demand forecasting, development of additional storage facilities, and improved coordination with suppliers. By creating a more agile and responsive supply chain, the project aimed to stabilize LNG supply, reduce operational costs, and enhance Thailand’s energy resilience.
- Approach
Our approach combined logistical improvements, storage infrastructure development, and technology integration to optimize Thailand’s LNG supply chain:
- Predictive Demand Forecasting: Utilizing predictive analytics to forecast energy demand accurately, allowing for more efficient LNG procurement and minimizing the risks of overstocking or supply shortages.
- Expansion of Storage Facilities: Developing strategically located LNG storage facilities to increase capacity, allowing for better handling of supply fluctuations and enhanced buffer capacity for peak demand periods.
- Improved Transportation and Import Logistics: Optimizing shipping routes and import processes to reduce transportation costs, including collaboration with port authorities to streamline LNG terminal operations.
- Digital Supply Chain Management: Implementing a digital supply chain management platform to provide real-time tracking of LNG shipments, inventory levels, and demand fluctuations, enhancing transparency and responsiveness.
- Recommendations
The LNG supply chain optimization delivered significant returns across cost efficiency, supply stability, and environmental impact:
- Cost Efficiency ROI: By improving transportation logistics and reducing import costs, the client achieved substantial savings in LNG procurement, enhancing the economic viability of LNG as a primary energy source.
- Supply Stability ROI: Expanded storage capacity and predictive forecasting improved supply reliability, allowing Thailand to meet energy demand consistently, even during peak periods.
- Environmental ROI: Optimizing LNG transport routes and reducing energy waste through better demand forecasting contributed to a lower carbon footprint, supporting Thailand’s sustainability targets.
- Engagement ROI
The solar energy adoption strategy delivered substantial returns across economic, environmental, and social dimensions, aligning with Saudi Arabia’s vision for a diversified energy portfolio:
- Economic ROI: Large-scale solar farms and local solar manufacturing initiatives reduced long-term energy costs and created new job opportunities, contributing to economic diversification and growth.
- Environmental ROI: Solar energy adoption significantly lowered carbon emissions, reducing Saudi Arabia’s environmental footprint and supporting global climate goals.
- Social ROI: Public awareness and training programs fostered local expertise and raised public support for renewable energy, creating a culture of sustainability and encouraging community participation in the energy transition.