Innovative Logistics and Supply Chain Methods for Liquefied Natural Gas Project Success in Mozambique

Innovative Logistics and Supply
Chain Methods for Liquefied
Natural Gas Project Success in
Mozambique

ABSTRACT
Logistics is the critical component in supply chain administration and line up the
multifaceted transportation patterns, purchasing, shipping, warehousing, import and export
operations, customer service as well as production planning. Mozambique liquefied natural gas is
an emerging leader in global LNG industry that work to develop liquefied natural gas facility in
province of Cabo Delgado. The innovative logistics and supply chain methods highly contributes
in ensuring success of liquefied natural gas project in Mozambique. Apart from this, various
opportunities are represented by Mozambique liquefied natural gas project including cleaner
source of energy that do not provide any harm to environment, enables to produce and market
large quantity of fuel etc. all this will highly contribute in success of project.

Table of Contents
ABSTRACT.....................................................................................................................................2
TOPIC: Innovative Logistics and Supply Chain Methods for Liquefied Natural Gas Project
Success in Mozambique...................................................................................................................4
Overview of Project.........................................................................................................................4
1. Objectives of the study.................................................................................................................4
Aim of Research Project.........................................................................................................4
Objectives of Research Project...............................................................................................5
Research Questions................................................................................................................5
Brief theoretical context of the study.....................................................................................5
Different innovative methods of logistics and supply chain:............................................5
Importance of logistics and supply chain methods in liquefied natural gas project's success:
...........................................................................................................................................6
Opportunities represented by Mozambique liquefied natural gas project:........................7
Challenges that arise in liquefied natural gas projects:.....................................................8
2. Research approach.......................................................................................................................8
3. Research Design...........................................................................................................................9
4. Detailed explanation for each component of research design...................................................11
Sampling methods................................................................................................................11
Data collection methods.......................................................................................................12
Time and Resources required...............................................................................................14
Risks involved in proposed data collection methods...........................................................15
5. The way outputs from distinct research methods utilized will be combined and the way this
integration will contribute towards fulfilment of research objectives...........................................15
REFERENCES..............................................................................................................................19

TOPIC: Innovative Logistics and Supply Chain Methods for Liquefied
Natural Gas Project Success in Mozambique
Overview of Project
In global LNG industry, Mozambique liquefied natural gas is emerging as a leader in
future as it works to build a liquefied natural gas facility in Cabo Delgado province, on the
Afungi peninsula. The Mozambique LNG gas project demonstrates an exceptional opportunity to
mitigate the increasing demand for cleaner, sustainable and reliable source of energy of world
with around 75 trillion cubic feet of retrievable natural gas that discovered in Offshore Area 1 (A
Cleaner Source of Energy for the World, 2019). This project is based on the topic “Innovative
Logistics and Supply Chain Methods for Liquefied Natural Gas Project Success in Mozambique”
and it intents to analyse the methods of supply chain and logistics for ensuring success of LNG
project in Mozambique.
This project is based on the the topic “To analyse innovative logistics and supply chain
methods for ensuring success of liquefied natural gas project. A case study on Mozambique LNG
project”. This study covers objectives of study along with brief theoretical context of it. It also
includes research approach and design of the study with proper justification for the choice. In
addition to this, a detailed explanation of each research design component including sampling
approach, data collection methods along with their justification as well as the resources and time
required in study and the risks included in proposed data collection methods. At last, a section on
the way outputs from distinct research methods utilised will be conjunct and the way this
integration will contribute to accomplishment of research objectives are discussed in the project.
By conducting this research, the researcher enables to get insights about distinct innovative
logistics and supply chain methods along with their importance in success of liquefied natural
gas project. It also helps in determining the opportunities delineate by Mozambique liquefied
natural gas project and the challenges arise in it.

1. Objectives of the study
Aim of Research Project
Research aim refers to the overall specification of purpose or intention of a particular
study. This depicts the understanding and knowledge that a researcher need to answer the
research questions. Each project has its specific aim and the aim of this particular project is:
“To analyse innovative logistics and supply chain methods for ensuring success of
liquefied natural gas project. A case study on Mozambique LNG project.”
Objectives of Research Project
In research, objectives outlines the particular steps that a researcher will take to
accomplish aim of research. The objectives are set at the initiation of project to direct the overall
research. This project is about the Innovative Logistics and Supply Chain Methods for Liquefied
Natural Gas Project Success in Mozambique and the objectives of project are as follows:
 To identify different innovative methods of logistics and supply chain.
 To analyse the importance of logistics and supply chain methods in liquefied natural gas
project's success.
 To assess the opportunities represented by Mozambique liquefied natural gas project.
 To evaluate the challenges that arise in liquefied natural gas projects.
Research Questions
Research question refers to the answerable inquiry into a particular issue or concern. In
research, two purposes are serve by the questions including: It identifies where and what sort of
investigation the researcher will be looking for and the second is that, it determines the specific
objectives the paper or investigation will address. In context of this research, the questions are as
follows:
 What are the different innovative methods of logistics and supply chain?
 What is the importance of logistics and supply chain methods in liquefied natural gas
project's success?
 What are the opportunities represented by Mozambique liquefied natural gas project?
 What can be the challenges that arise in liquefied natural gas projects?
Brief theoretical context of the study

Different innovative methods of logistics and supply chain:
As per the view point of Hansen and et. al., (2016), logistics refers to the procedure of
planning and implementing expeditious transportation and storage of products from the origin to
consumption point. It is the way of coordinating and moving resources from one place to
another. Logistics is one of the crucial component of supply chain management and aligns the
complex pattern of transportation, shipping, import and export operations, purchasing,
warehousing, customer service and production planning. The volume and distance are the crucial
elements to identify the most profitable and appropriate transportation technology for LNG.
Pipeline transportation of natural gas is profitable for larger volumes. As the volume of liquefied
natural gas is 600 times smaller than natural gas, its transportation is cheaper. In order to
transport the LNG, the natural gas is liquefied first and then loaded as well as shipped to
receiving terminals where power and intensive to refrigerant cycle is administered by natural gas
fired in the turbines of gas. The process efficiency mainly rely on efficiency of heat exchangers
and turbines. After the liquefaction of gas, it is shipped through LNG tankers. Whereas, the
modern tankers of oil are panoplied with diesel propulsion system. The shipping fleets of
liquefied natural gas are panoplied with steam turbine systems which are fuelled with HFO
(heavy fuel oil). As per the view point of D'Alessandro, (2018), the recent developments in
technology have made the propulsion of diesel appropriate for liquefied natural gas carriers. In
future, it is expected that increasing amount of LNG ships will be accoutred with diesel
propulsion systems. The main advantage of using this transportation system is the reduced losses
of liquefied natural gas.
Apart from this method, the another method is ocean transport in which large volume of
liquefied natural gas is loaded onto ships which are double hulled and are utilized for insulating
as well as safety purposes. When the ship arrives once at the receiving port, the liquefied natural
gas is off loaded into storage tanks which are well insulated. After that, it later re-gasified for
entrance to a distribution network of pipeline. The gas can also be transported into less
quantities over short ocean distances. In small scale liquefied natural gas, there is a growing
trade which is made most commonly by utilizing the similar containers which are utilized on
trucks.