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To accommodate for flexibility of earlier arrival of the ship, we recommend that the central tank should have 25% extra capacity. To accommodate for breakdowns of trailers and late arrival of the ship, we recommend an extra trailer.
The downside of this strategy is that Distrigas is building upfront capacity at customer end. In the event that the pipeline companies increase their supplies to utility companies, the overall market for LNG during peak usage period will decrease and Distrigas will be left with unutilized capacity. Distrigas can mitigate such risks by entering into long term contracts such as the one entered between Distrigas and Bostongas...
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