TECHNICAL PROGRAMME | Energy Infrastructure – Future Pathways
Supply Chain Management
Forum 11 | Digital Poster Plaza 2
30
April
10:00
12:00
UTC+3
In the context of global energy landscape reshaping and energy transition acceleration, it is important that oil and gas companies manage their supply chain smarter and greener with digital technology and artificial intelligence. Better infrastructure, optimal process and closer partnership is also essential. This forum will discuss the latest research and best practices on supply chain management, including strategic planning, infrastructure, process management, partnership, risk management and artificial intelligence.
Objectives 75: One of the pillars of hydraulic fracturing services is the tailored supply chain workflows. Localization strengthens supply chain elements by procuring parts and services locally which plays a massive role in terms of pricing, lead time, and storage. This study addresses a case history located in KSA for a hydraulic fracturing operations start-up and evaluates how effective supply chain management can result in a significant synergy and improved service delivery of hydraulic fracturing operations.
Methodology 100: The method starts by describing the fracturing operations start-up from zero to 200 plus employees and to building two complete heavy-weight frac packages with capabilities to deliver high-end fracturing services at extreme pressure and temperature. A robust supply-chain organization, which includes the industry standards and business processes, enabled the supply-chain workflow to be more effective both internally within the company and externally. Key metrics that were considered in this study included cost reduction, lead time requirement and materials/product quality. The study will show how the solid and well-followed procurement standards led to cost reduction and lead time optimization.
Results 200: Supply chain and logistics management for hydraulic fracturing included procurement and delivery of the required materials at minimum cost. A strategic plan was initiated to request proposals from local and international suppliers for a specific scope for the high-spend products. 24 vendors, out of 49 invited vendors, submitted their proposals including technical data, prices, and incoterms. An initial saving percentage exceeded 40% by selecting domestic chemical manufacturers and committing to a certain purchase over a planned operational period. Overall, materials cost from direct and indirect suppliers was reduced by more than 20% within 12 months period. A significant reduction of lead time was achieved through several initiatives including the reduction of in-kingdom stock. For instance, personal protective equipment supply process was reduced by more than 70%.
Novelty 75: This paper evaluates, for the first time, how effective supply chain and procurement processes can positively reflect on fracturing operations start-ups. It also spotlights the importance of localization in terms of materials supply and spare part and maintenance readiness.
Methodology 100: The method starts by describing the fracturing operations start-up from zero to 200 plus employees and to building two complete heavy-weight frac packages with capabilities to deliver high-end fracturing services at extreme pressure and temperature. A robust supply-chain organization, which includes the industry standards and business processes, enabled the supply-chain workflow to be more effective both internally within the company and externally. Key metrics that were considered in this study included cost reduction, lead time requirement and materials/product quality. The study will show how the solid and well-followed procurement standards led to cost reduction and lead time optimization.
Results 200: Supply chain and logistics management for hydraulic fracturing included procurement and delivery of the required materials at minimum cost. A strategic plan was initiated to request proposals from local and international suppliers for a specific scope for the high-spend products. 24 vendors, out of 49 invited vendors, submitted their proposals including technical data, prices, and incoterms. An initial saving percentage exceeded 40% by selecting domestic chemical manufacturers and committing to a certain purchase over a planned operational period. Overall, materials cost from direct and indirect suppliers was reduced by more than 20% within 12 months period. A significant reduction of lead time was achieved through several initiatives including the reduction of in-kingdom stock. For instance, personal protective equipment supply process was reduced by more than 70%.
Novelty 75: This paper evaluates, for the first time, how effective supply chain and procurement processes can positively reflect on fracturing operations start-ups. It also spotlights the importance of localization in terms of materials supply and spare part and maintenance readiness.
In the context of a rapidly evolving global energy landscape and the accelerating energy transition, it is essential for oil and gas companies to manage their supply chains in smarter, greener ways, leveraging digital technologies and artificial intelligence (AI). This paper focuses on a data-driven approach to supply chain management in the Iran oil and gas sector, using data generated from national quality infrastructure (NQI) systems.
NQI includes standardization, metrology, and accredited conformity assessment, forming a continuous cycle where standards are developed, measurements are harmonized, and conformity is verified and widely accepted. In Iran’s oil industry, two key institutions have been established and connected to the International Network on Quality Infrastructure (INetQI): the Iranian Petroleum Institute Accreditation Body (IPIAB) and the Iranian Petroleum Institute Certification Body (IPICB). IPIAB is responsible for accrediting laboratories and inspection companies based on ISO/IEC 17025 and ISO/IEC 17020, while IPICB certifies specialized oil and gas equipment and relevant personnel according to ISO/IEC 17065 and ISO/IEC 17024.
Because most specialized oil and gas equipment is custom-made, inspection and certification bodies play critical roles throughout the production cycle under Inspection & Test Plans (ITPs), often requiring the physical presence of inspectors (hold or witness points). This system significantly reduces the cultural and process costs of data generation, shifting the focus toward producing high-quality data.
The supply chain process begins with sourcing, which includes manufacturers, inspection providers, and laboratories. We have launched data generation at the sourcing stage using the “SAKHT” platform (Iran Petroleum Industry Development Services Platform), gradually integrating conformity assessment data to complete the supply chain information cycle.
In the second phase of this project, the collected data will undergo preprocessing and validation, followed by the application of a large language model (LLM) trained on these datasets, enabling comprehensive AI-driven analysis across all stages. This integrated approach will enhance supply chain management with a focus on quality, sustainability, and operational risk control, particularly under restricted international market access. Additionally, it will support regulatory efforts to manage strategic issues such as carbon footprint reduction.
Co-author/s:
Omid Shakeri, Deputy Minister of Petroleum for Engineering, Research and Technology, Ministry of Petroleum.
Mohammad Ali Emadi, General Director, Iranian Petroleum Institute.
NQI includes standardization, metrology, and accredited conformity assessment, forming a continuous cycle where standards are developed, measurements are harmonized, and conformity is verified and widely accepted. In Iran’s oil industry, two key institutions have been established and connected to the International Network on Quality Infrastructure (INetQI): the Iranian Petroleum Institute Accreditation Body (IPIAB) and the Iranian Petroleum Institute Certification Body (IPICB). IPIAB is responsible for accrediting laboratories and inspection companies based on ISO/IEC 17025 and ISO/IEC 17020, while IPICB certifies specialized oil and gas equipment and relevant personnel according to ISO/IEC 17065 and ISO/IEC 17024.
Because most specialized oil and gas equipment is custom-made, inspection and certification bodies play critical roles throughout the production cycle under Inspection & Test Plans (ITPs), often requiring the physical presence of inspectors (hold or witness points). This system significantly reduces the cultural and process costs of data generation, shifting the focus toward producing high-quality data.
The supply chain process begins with sourcing, which includes manufacturers, inspection providers, and laboratories. We have launched data generation at the sourcing stage using the “SAKHT” platform (Iran Petroleum Industry Development Services Platform), gradually integrating conformity assessment data to complete the supply chain information cycle.
In the second phase of this project, the collected data will undergo preprocessing and validation, followed by the application of a large language model (LLM) trained on these datasets, enabling comprehensive AI-driven analysis across all stages. This integrated approach will enhance supply chain management with a focus on quality, sustainability, and operational risk control, particularly under restricted international market access. Additionally, it will support regulatory efforts to manage strategic issues such as carbon footprint reduction.
Co-author/s:
Omid Shakeri, Deputy Minister of Petroleum for Engineering, Research and Technology, Ministry of Petroleum.
Mohammad Ali Emadi, General Director, Iranian Petroleum Institute.
Pertamina as a State-Owned Energy Company has an obligation to distribute crude oil and other fuel and energy products throughout Indonesia to meet energy needs. So that, Pertamina has a wide distribution network that covers to the remote islands of Indonesia. There are 771 vessels with 1479 voyage orders/month using 209 ports to distribute the energy. It has a very complex challenge in terms of managing the oil and gas distribution system with multi-mode transportation, multi-products and multi-destinations.
To fulfill its responsibility, every month Pertamina carries out a “Master Program” for preparing Supply Scheduling Planning.
The Master Program involves 150 people from three large teams (icrude, fuel, and non-fuel) that manually determine each vessel’s schedule based on input from the planning team. The inputs are the most cost-efficient routes for fuel and non-fuel products and the government’s crude oil lifting schedule. The concurrent optimization process creates significant complexity as most routes will use the same ports and berthing facilities, making it more likely that berthing schedules will clash with each other and potentially lead to stockouts and inefficiencies in logistics costs. Since most of the process is done manually, the scheduler struggles to iterate to find the most efficient final schedule and to determine timely recovery actions when disruptions occur. This condition causes high supply chain costs due to suboptimal and unintegrated schedules, for example clashes between fuel and LPG schedules, resulting in high integrated port time (IPT).
To address these challenges, Pertamina launched a digital transformation initiative by developing Dynamic Scheduling and Automation System (DSAS). The team developed a data consolidation platform to integrate all data sources needed for the master program. After that, the data will be optimized by the system automatically to build the scheduling for Primary Distribution M+1 and M+2 (Fuel, LPG, Intermediate and Crude). The system also dynamically produces a rapid recovery action plan to overcome disruptions. The system also combines artificial intelligence (AI) technology to improve accuracy and achieve better optimization based on main objectives of Pertamina's supply chain, such as optimal logistic cost, optimal inventory resilience, and optimal fleet size. DSAS also produces a voyage order which will be the basis for the team in the field to move the ship.
Here are the benefits of innovation:
Co-author/s:
I Gusti Agung Gede Subrata, Analyst I Supply Chain Monitoring & Deviation Management, PT Pertamina (Persero).
To fulfill its responsibility, every month Pertamina carries out a “Master Program” for preparing Supply Scheduling Planning.
The Master Program involves 150 people from three large teams (icrude, fuel, and non-fuel) that manually determine each vessel’s schedule based on input from the planning team. The inputs are the most cost-efficient routes for fuel and non-fuel products and the government’s crude oil lifting schedule. The concurrent optimization process creates significant complexity as most routes will use the same ports and berthing facilities, making it more likely that berthing schedules will clash with each other and potentially lead to stockouts and inefficiencies in logistics costs. Since most of the process is done manually, the scheduler struggles to iterate to find the most efficient final schedule and to determine timely recovery actions when disruptions occur. This condition causes high supply chain costs due to suboptimal and unintegrated schedules, for example clashes between fuel and LPG schedules, resulting in high integrated port time (IPT).
To address these challenges, Pertamina launched a digital transformation initiative by developing Dynamic Scheduling and Automation System (DSAS). The team developed a data consolidation platform to integrate all data sources needed for the master program. After that, the data will be optimized by the system automatically to build the scheduling for Primary Distribution M+1 and M+2 (Fuel, LPG, Intermediate and Crude). The system also dynamically produces a rapid recovery action plan to overcome disruptions. The system also combines artificial intelligence (AI) technology to improve accuracy and achieve better optimization based on main objectives of Pertamina's supply chain, such as optimal logistic cost, optimal inventory resilience, and optimal fleet size. DSAS also produces a voyage order which will be the basis for the team in the field to move the ship.
Here are the benefits of innovation:
- Improved Efficiency & Optimization: Reduces manual work and errors. Optimize routes, loading/unloading times, and fuel consumption. Better asset utilization.
- Real-Time Data & Visibility: Enables live updates on delays. Supports faster decision-making and responsive planning.
- Cost Savings: Minimizes demurrage charges. Reduces fuel costs and unnecessary voyages. Avoids costly planning mistakes or double bookings.
- Scenario Planning & Forecasting: Allow testing different planning scenarios (e.g., supply shocks, maintenance outages). Supports strategic planning and long-term logistics optimization.
Co-author/s:
I Gusti Agung Gede Subrata, Analyst I Supply Chain Monitoring & Deviation Management, PT Pertamina (Persero).
Under the background of accelerating global energy transformation, increasing geopolitical risks and frequent fluctuations in market demand, the resilience construction of international oil companies ' industrial chain is facing multi-dimensional challenges. It is necessary to ensure the stability of traditional links and deal with emerging risks such as renewable energy layout and carbon constraint policies. However, the existing research on the systematic evaluation of the industrial chain resilience of international oil companies is insufficient. Therefore, this paper constructs an evaluation system of industrial chain resilience from the perspective of enterprise practice, and analyzes its impact on capital market.
This paper takes 16 typical international oil companies such as ExxonMobil as the research object, and conducts empirical research based on data from 2014 to 2023. Firstly, 17 indicators are selected from multiple dimensions such as financial structure and business collaboration to construct a resilience evaluation system. Secondly, the entropy weight-TOPSIS method is used to measure the resilience level of the industrial chain, horizontally compare the resilience differences between companies, and vertically analyze the evolution trend in the cycle. Thirdly, the factor analysis method is introduced to extract the core driving factors of resilience, and the influence mechanism of resilience and each factor on stock price volatility is tested. At the same time, the turnover rate is used as an intermediary variable to explore the path of resilience affecting stock price volatility through market sentiment transmission. Finally, taking ExxonMobil as an example, this paper analyzes its strategic practice and resilience system construction, further verifies the robustness of the empirical conclusions, and provides practical reference for the company to enhance the resilience of the industrial chain.
The study found that :
Co-author/s:
Jianliang Wang, Dean of the School of Economics and Management, China University of Petroleum.
Mingming Liu, Associate Dean of the School of Economics and Management, China University of Petroleum.
This paper takes 16 typical international oil companies such as ExxonMobil as the research object, and conducts empirical research based on data from 2014 to 2023. Firstly, 17 indicators are selected from multiple dimensions such as financial structure and business collaboration to construct a resilience evaluation system. Secondly, the entropy weight-TOPSIS method is used to measure the resilience level of the industrial chain, horizontally compare the resilience differences between companies, and vertically analyze the evolution trend in the cycle. Thirdly, the factor analysis method is introduced to extract the core driving factors of resilience, and the influence mechanism of resilience and each factor on stock price volatility is tested. At the same time, the turnover rate is used as an intermediary variable to explore the path of resilience affecting stock price volatility through market sentiment transmission. Finally, taking ExxonMobil as an example, this paper analyzes its strategic practice and resilience system construction, further verifies the robustness of the empirical conclusions, and provides practical reference for the company to enhance the resilience of the industrial chain.
The study found that :
- There are significant differences in the level of resilience among companies. Integrated companies perform better by virtue of their synergy advantages in the whole industrial chain, and ExxonMobil performs the most prominent.
- The stronger the industrial chain resilience of international oil companies is, the lower the stock price volatility is, showing a significant risk buffer effect.
- Financial structure factor and innovation competition factor have a significant effect on reducing volatility, and operational efficiency and business synergy factor have a certain positive incentive to volatility ;
- Industrial chain resilience inhibits stock price volatility by reducing turnover. Based on the above conclusions, combined with ExxonMobil 's strategic practice, it is recommended that international oil companies attach great importance to the construction of industrial chain resilience, deepen the layout of the whole industrial chain, strengthen financial resilience management, increase R & D investment, and realize the coordinated development of traditional oil and gas and new energy business under the background of energy transformation.
Co-author/s:
Jianliang Wang, Dean of the School of Economics and Management, China University of Petroleum.
Mingming Liu, Associate Dean of the School of Economics and Management, China University of Petroleum.
Integrated energy companies operate vast and complex supply chains encompassing exploration, refining, distribution, logistics, storage, and trading. These supply chains are significant contributors to global carbon dioxide emissions. In 2023, oil and gas production and transport generated approximately 5.81 billion tons of CO₂-equivalent emissions. In light of increasingly stringent carbon neutrality commitments, optimizing these networks more than operational efficiency—it calls for intelligent, low-carbon strategies grounded in advanced optimization, intelligent planning, and system-level coordination. This study presents a comprehensive supply chain optimization framework tailored for large-scale petroleum enterprises, with a focus on final petrochemical product planning. The framework spans the entire supply chain and integrates multiple geographically distributed refineries processing crude from diverse oil fields and transfer to different markets. A mathematical programming model is developed to maximize system-wide economic returns while explicitly incorporating carbon emissions as operational constraints. To assess the robustness and flexibility of the proposed model, sensitivity analysis and Monte Carlo simulations are conducted, quantifying the impact of carbon constraints on supply chain decisions. Results indicate that different final product types and amount combinations lead to varying benefits while simultaneously resulting in distinct emissions. The carbon emissions resulting from the production of chemical products, such as ethylene, are estimated 1.3 to 1.9 times higher than those from producing refinery products like gasoline and diesel. Under dynamic market conditions, by adjusting crude oil allocation, optimizing product yields, and enhancing inter-refinery resource coordination, it is possible to reduce emissions without incurring profit loss. When maintaining constant crude throughput and overall supply chain capacity, such internal optimizations can achieve carbon reductions ranging from 3.7% to 7.8%. This work highlights the practical potential of integrating digital tools and mathematical planning into the operational core of oil supply chains, offering a viable pathway for traditional energy producers to advance toward global decarbonization targets while sustaining economic competitiveness.
Co-author/s:
Qing Li, Senior Engineer, PetroChina Planning and Engineering Institute, China National Petroleum Cooperation.
Yanming Cao, Senior Engineer, PetroChina Planning and Engineering Institute, China National Petroleum Cooperation.
Co-author/s:
Qing Li, Senior Engineer, PetroChina Planning and Engineering Institute, China National Petroleum Cooperation.
Yanming Cao, Senior Engineer, PetroChina Planning and Engineering Institute, China National Petroleum Cooperation.
Indonesia is the largest archipelago country in the world. This makes vessels become the most widely used means of transportation to distribute energy in this country. As a state-owned energy company in Indonesia, Pertamina has a responsibility to distribute energy all over the country. There are 771 vessels with 1479 voyage orders/month using 209 ports to distribute the energy. The problem is an inefficient port utilization makes high vessel delays and high integrated port time.
Based on that problem, Pertamina carried out Integrated Logistics Optimization (ILO). It is used to monitor Pertamina’s marine operations, which include the movement and activities of vessels and ports. The aim is to provide real-time operational information and to improve vessel and port performance. With ILO Mobile, users at ports can access the system every day, anytime, anywhere to make Digital Voyage Orders (tracking orders), track activities and real-time ship positions, produce documents and reports in digital format, schedule ships mooring digitally, and have real-time Integrated Port Time (IPT). Meanwhile, for the captain and the crew, ILO is useful for notification of voyage orders from Pertamina, status updates, and vessel activity in real time, making noon reports online, submitting ETA and ATA in real time, notification of ship mooring schedules, and developing a pumping log report digitally.
One of the main aspects managed by ILO Mobile is calculation of freight costs carried out between sub holdings in Pertamina Group from hundreds of ships and thousands of voyages. Freight cost includes the cost while the ship is sailing and at the port. With ILO Mobile, all calculations can be done automatically which can directly ensure the level of accuracy and efficiency in the supply chain of product transportation from one point to another.
This application can be accessed by Cargo Planners, Programmers, Ship Administrators, Ship Representatives, Surveyors, and Cargo Owners with various superior features as follows:
ILO Mobile plays an important role for Pertamina's business in maintaining data validity and oil flow stability. ILO reduces the risk of cost calculation errors that can affect the Cost of Goods Sold (COGS) and product selling prices.
Co-author/s:
Putu Yunik Tri Wedayanti, Manager Sea Transportation Optimization, PT Pertamina (Persero).
Based on that problem, Pertamina carried out Integrated Logistics Optimization (ILO). It is used to monitor Pertamina’s marine operations, which include the movement and activities of vessels and ports. The aim is to provide real-time operational information and to improve vessel and port performance. With ILO Mobile, users at ports can access the system every day, anytime, anywhere to make Digital Voyage Orders (tracking orders), track activities and real-time ship positions, produce documents and reports in digital format, schedule ships mooring digitally, and have real-time Integrated Port Time (IPT). Meanwhile, for the captain and the crew, ILO is useful for notification of voyage orders from Pertamina, status updates, and vessel activity in real time, making noon reports online, submitting ETA and ATA in real time, notification of ship mooring schedules, and developing a pumping log report digitally.
One of the main aspects managed by ILO Mobile is calculation of freight costs carried out between sub holdings in Pertamina Group from hundreds of ships and thousands of voyages. Freight cost includes the cost while the ship is sailing and at the port. With ILO Mobile, all calculations can be done automatically which can directly ensure the level of accuracy and efficiency in the supply chain of product transportation from one point to another.
This application can be accessed by Cargo Planners, Programmers, Ship Administrators, Ship Representatives, Surveyors, and Cargo Owners with various superior features as follows:
- Time Effectiveness Score which allows companies to assess the level of optimization of the entire ship's operational process. Given that ship operational costs are very large and time efficiency is a key factor in cost savings.
- Multi Dashboard Analytic helps the port in determining improvement priorities based on more accurate and in-depth data analysis.
- Chat Consolidation Live which allows the operational team to get ship activity data updates in chat groups directly. This speeds up the decision-making process and operational improvements.
- Auto Consolidation System which automatically consolidates and validates transactions so that time and resource efficiency is created.
ILO Mobile plays an important role for Pertamina's business in maintaining data validity and oil flow stability. ILO reduces the risk of cost calculation errors that can affect the Cost of Goods Sold (COGS) and product selling prices.
Co-author/s:
Putu Yunik Tri Wedayanti, Manager Sea Transportation Optimization, PT Pertamina (Persero).
Climate change brought about by anthropogenic greenhouse gas (GHG) emissions is a pressing global issue. Given that it has a high degree of energy intensity, the petroleum, natural gas, and petrochemical industries are emitters and constitute some of the large sources of this issue, and as such, accurate, consistent, and real-time GHG emissions measurements would be required to be in compliance with environmental policies and be capable of reacting to emerging measures like carbon taxation. This paper proposes a conceptual model of a real-time Greenhouse Gas (GHG) Monitoring, Reporting, and Verification (MRV) system using an Internet of Things (IoT) architecture. The proposed system is intended to measure emissions from petrochemical plants through sensor-based data collection and automatic data processing. Its primary goal is to enhance data accuracy, minimize uncertainty, and comply with international standards such as ISO 14064 and the GHG Protocol. In contrast to conventional manual reporting practices, this IoT-based MRV system facilitates real-time monitoring and systematic recording of CO₂ emissions. The system incorporates a structured Quality Control and Quality Assurance (QC/QA) program to ensure data precision, completeness, and integrity. Quality Control procedures involve real-time verification of raw sensor data, anomaly detection, recording of known issues, and implementation of traceable storage procedures for data. Quality Assurance involves the implementation of regular system audits by independent reviewers, verification of procedures utilized, and creation of standard operating procedures to provide consistency and transparency. Such procedures reduce measurement errors and increase the reliability of emission reporting for regulatory as well as internal stakeholders. By increasing data transparency and reporting reliability, such an MRV framework can assist in strategic decision-making and even lower carbon-related financial obligations. Offering accurate real-time emissions data enables industries to engage proactively with carbon pricing mechanisms, such as preparing for tax repercussions and optimizing mitigation measures. This research meets the WPC 2026 theme "Pathways to an Energy Future for All," by demonstrating a digital approach to sustainable emissions management from high-emitting sectors (e.g., gas flaring). Pilot implementation, simulation, and collaboration with industry stakeholders are planned for subsequent phases.
Co-author/s:
Tahereh Hematiyan, Amirkabir University of Technology (Tehran Polytechnic).
Zadeh Mohebi, Amirkabir University of Technology (Tehran Polytechnic).
Co-author/s:
Tahereh Hematiyan, Amirkabir University of Technology (Tehran Polytechnic).
Zadeh Mohebi, Amirkabir University of Technology (Tehran Polytechnic).
In recent years, the global energy supply chain has faced unprecedented challenges, particularly against the backdrop of frequent geopolitical conflicts and escalating international trade barriers. As one of the key modes of global energy transportation, the arrival frequency of LNG carriers has significantly declined, while the volatility of transportation cycles has increased markedly. This has introduced substantial uncertainty to the operation of LNG receiving terminals. Such instability has not only intensified the difficulty of inventory management but has also imposed higher demands on pressure regulation of storage tanks, the scheduling of key equipment, and overall operational efficiency. To address these challenges, this study develops a multidimensional energy consumption optimization model based on the actual process flow of LNG receiving terminals. The model comprehensively considers several critical factors, including fluctuations in vessel arrivals, pressure balance control in storage tanks, energy consumption calculations for pumps and compressors, and the handling of BOG. Adopting a holistic system perspective, the model coordinates the dynamic relationship between upstream resource supply and downstream user demand. The study demonstrates that through rational scheduling of equipment operations within the LNG receiving terminal, it is possible to achieve energy conservation and emission reduction, even under conditions of uncertain LNG carrier arrivals and fluctuating downstream demand. Moreover, the implementation of a flexible scheduling mechanism enhances the terminal’s resilience to the volatility of the international energy market, thereby supporting the efficient operation of LNG receiving terminals amid global energy market turbulence.
Following its maturation in China's consumer finance sector, supply chain finance (SCF) is now expanding into industrial finance, with the natural gas industry attracting growing participation from diversified stakeholders. This paper analyzes the current developmental stage of natural gas SCF, identifying critical challenges including:
Operational Architecture:
Technical Infrastructure:
Empirical evidence demonstrates dual value creation:
Strategic Recommendations for Industry Advancement:
Regulatory Innovation:
Ecosystem Development:
CSR Enhancement:
This framework addresses key industry pain points by:
- Multi-stakeholder coordination gaps: Fragmented collaboration among participants
- Disjointed integration of "four flows": Mismatches among logistics, information, capital, and energy flow. T
- The study proposes blockchain-powered solutions to enhance SCF systems through three strategic dimensions:
Operational Architecture:
- Smart contract-driven transaction ecosystems
- Dynamic financing mechanisms with automated risk triggers
Technical Infrastructure:
- Hybrid blockchain platforms integrating permissioned chains (for core enterprises) and private chains (for SMEs)
- Privacy-preserving modules using zero-knowledge proofs (ZKPs)
Empirical evidence demonstrates dual value creation:
- Economic benefits: 28-42% reduction in financing costs for SMEs (Yangtze River Delta pilot data)
- Social value: 19% improvement in energy flow traceability compliance, crucial for carbon credit verification
Strategic Recommendations for Industry Advancement:
Regulatory Innovation:
- Develop energy-flow integrated regulatory frameworks under China's dual carbon goals
- Establish digital sandbox mechanisms for blockchain-finance convergence
Ecosystem Development:
- Build core enterprise-led consortium chains with tiered node networks:
- Tier-1 nodes: National oil companies (e.g., CNPC, CNOOC)
- Tier-2 nodes: Provincial pipeline operators
- Tier-3 nodes: LNG terminal operators
CSR Enhancement:
- Implement graded CSR evaluation systems for anchor enterprises
- Introduce blockchain-based green finance incentives
This framework addresses key industry pain points by:
- Providing tamper-proof trade scenarios through on-chain LNG documentation
- Mitigating information silos via cross-institutional data bridges
- Reducing contract default risks via smart contract auto-enforcement
Yan Yang
Chair
Director, Department of Energy Technology
CNPC Economics & Technology Research Institute
Abbas Ahmadi
Speaker
Professor
Amirkabir University of Technology (Tehran Polytechnic)
Climate change brought about by anthropogenic greenhouse gas (GHG) emissions is a pressing global issue. Given that it has a high degree of energy intensity, the petroleum, natural gas, and petrochemical industries are emitters and constitute some of the large sources of this issue, and as such, accurate, consistent, and real-time GHG emissions measurements would be required to be in compliance with environmental policies and be capable of reacting to emerging measures like carbon taxation. This paper proposes a conceptual model of a real-time Greenhouse Gas (GHG) Monitoring, Reporting, and Verification (MRV) system using an Internet of Things (IoT) architecture. The proposed system is intended to measure emissions from petrochemical plants through sensor-based data collection and automatic data processing. Its primary goal is to enhance data accuracy, minimize uncertainty, and comply with international standards such as ISO 14064 and the GHG Protocol. In contrast to conventional manual reporting practices, this IoT-based MRV system facilitates real-time monitoring and systematic recording of CO₂ emissions. The system incorporates a structured Quality Control and Quality Assurance (QC/QA) program to ensure data precision, completeness, and integrity. Quality Control procedures involve real-time verification of raw sensor data, anomaly detection, recording of known issues, and implementation of traceable storage procedures for data. Quality Assurance involves the implementation of regular system audits by independent reviewers, verification of procedures utilized, and creation of standard operating procedures to provide consistency and transparency. Such procedures reduce measurement errors and increase the reliability of emission reporting for regulatory as well as internal stakeholders. By increasing data transparency and reporting reliability, such an MRV framework can assist in strategic decision-making and even lower carbon-related financial obligations. Offering accurate real-time emissions data enables industries to engage proactively with carbon pricing mechanisms, such as preparing for tax repercussions and optimizing mitigation measures. This research meets the WPC 2026 theme "Pathways to an Energy Future for All," by demonstrating a digital approach to sustainable emissions management from high-emitting sectors (e.g., gas flaring). Pilot implementation, simulation, and collaboration with industry stakeholders are planned for subsequent phases.
Co-author/s:
Tahereh Hematiyan, Amirkabir University of Technology (Tehran Polytechnic).
Zadeh Mohebi, Amirkabir University of Technology (Tehran Polytechnic).
Co-author/s:
Tahereh Hematiyan, Amirkabir University of Technology (Tehran Polytechnic).
Zadeh Mohebi, Amirkabir University of Technology (Tehran Polytechnic).
Mojtaba Babaei
Speaker
Director
Iranian Petroleum Institute Accreditation Body (IPIAB)
In the context of a rapidly evolving global energy landscape and the accelerating energy transition, it is essential for oil and gas companies to manage their supply chains in smarter, greener ways, leveraging digital technologies and artificial intelligence (AI). This paper focuses on a data-driven approach to supply chain management in the Iran oil and gas sector, using data generated from national quality infrastructure (NQI) systems.
NQI includes standardization, metrology, and accredited conformity assessment, forming a continuous cycle where standards are developed, measurements are harmonized, and conformity is verified and widely accepted. In Iran’s oil industry, two key institutions have been established and connected to the International Network on Quality Infrastructure (INetQI): the Iranian Petroleum Institute Accreditation Body (IPIAB) and the Iranian Petroleum Institute Certification Body (IPICB). IPIAB is responsible for accrediting laboratories and inspection companies based on ISO/IEC 17025 and ISO/IEC 17020, while IPICB certifies specialized oil and gas equipment and relevant personnel according to ISO/IEC 17065 and ISO/IEC 17024.
Because most specialized oil and gas equipment is custom-made, inspection and certification bodies play critical roles throughout the production cycle under Inspection & Test Plans (ITPs), often requiring the physical presence of inspectors (hold or witness points). This system significantly reduces the cultural and process costs of data generation, shifting the focus toward producing high-quality data.
The supply chain process begins with sourcing, which includes manufacturers, inspection providers, and laboratories. We have launched data generation at the sourcing stage using the “SAKHT” platform (Iran Petroleum Industry Development Services Platform), gradually integrating conformity assessment data to complete the supply chain information cycle.
In the second phase of this project, the collected data will undergo preprocessing and validation, followed by the application of a large language model (LLM) trained on these datasets, enabling comprehensive AI-driven analysis across all stages. This integrated approach will enhance supply chain management with a focus on quality, sustainability, and operational risk control, particularly under restricted international market access. Additionally, it will support regulatory efforts to manage strategic issues such as carbon footprint reduction.
Co-author/s:
Omid Shakeri, Deputy Minister of Petroleum for Engineering, Research and Technology, Ministry of Petroleum.
Mohammad Ali Emadi, General Director, Iranian Petroleum Institute.
NQI includes standardization, metrology, and accredited conformity assessment, forming a continuous cycle where standards are developed, measurements are harmonized, and conformity is verified and widely accepted. In Iran’s oil industry, two key institutions have been established and connected to the International Network on Quality Infrastructure (INetQI): the Iranian Petroleum Institute Accreditation Body (IPIAB) and the Iranian Petroleum Institute Certification Body (IPICB). IPIAB is responsible for accrediting laboratories and inspection companies based on ISO/IEC 17025 and ISO/IEC 17020, while IPICB certifies specialized oil and gas equipment and relevant personnel according to ISO/IEC 17065 and ISO/IEC 17024.
Because most specialized oil and gas equipment is custom-made, inspection and certification bodies play critical roles throughout the production cycle under Inspection & Test Plans (ITPs), often requiring the physical presence of inspectors (hold or witness points). This system significantly reduces the cultural and process costs of data generation, shifting the focus toward producing high-quality data.
The supply chain process begins with sourcing, which includes manufacturers, inspection providers, and laboratories. We have launched data generation at the sourcing stage using the “SAKHT” platform (Iran Petroleum Industry Development Services Platform), gradually integrating conformity assessment data to complete the supply chain information cycle.
In the second phase of this project, the collected data will undergo preprocessing and validation, followed by the application of a large language model (LLM) trained on these datasets, enabling comprehensive AI-driven analysis across all stages. This integrated approach will enhance supply chain management with a focus on quality, sustainability, and operational risk control, particularly under restricted international market access. Additionally, it will support regulatory efforts to manage strategic issues such as carbon footprint reduction.
Co-author/s:
Omid Shakeri, Deputy Minister of Petroleum for Engineering, Research and Technology, Ministry of Petroleum.
Mohammad Ali Emadi, General Director, Iranian Petroleum Institute.
Under the background of accelerating global energy transformation, increasing geopolitical risks and frequent fluctuations in market demand, the resilience construction of international oil companies ' industrial chain is facing multi-dimensional challenges. It is necessary to ensure the stability of traditional links and deal with emerging risks such as renewable energy layout and carbon constraint policies. However, the existing research on the systematic evaluation of the industrial chain resilience of international oil companies is insufficient. Therefore, this paper constructs an evaluation system of industrial chain resilience from the perspective of enterprise practice, and analyzes its impact on capital market.
This paper takes 16 typical international oil companies such as ExxonMobil as the research object, and conducts empirical research based on data from 2014 to 2023. Firstly, 17 indicators are selected from multiple dimensions such as financial structure and business collaboration to construct a resilience evaluation system. Secondly, the entropy weight-TOPSIS method is used to measure the resilience level of the industrial chain, horizontally compare the resilience differences between companies, and vertically analyze the evolution trend in the cycle. Thirdly, the factor analysis method is introduced to extract the core driving factors of resilience, and the influence mechanism of resilience and each factor on stock price volatility is tested. At the same time, the turnover rate is used as an intermediary variable to explore the path of resilience affecting stock price volatility through market sentiment transmission. Finally, taking ExxonMobil as an example, this paper analyzes its strategic practice and resilience system construction, further verifies the robustness of the empirical conclusions, and provides practical reference for the company to enhance the resilience of the industrial chain.
The study found that :
Co-author/s:
Jianliang Wang, Dean of the School of Economics and Management, China University of Petroleum.
Mingming Liu, Associate Dean of the School of Economics and Management, China University of Petroleum.
This paper takes 16 typical international oil companies such as ExxonMobil as the research object, and conducts empirical research based on data from 2014 to 2023. Firstly, 17 indicators are selected from multiple dimensions such as financial structure and business collaboration to construct a resilience evaluation system. Secondly, the entropy weight-TOPSIS method is used to measure the resilience level of the industrial chain, horizontally compare the resilience differences between companies, and vertically analyze the evolution trend in the cycle. Thirdly, the factor analysis method is introduced to extract the core driving factors of resilience, and the influence mechanism of resilience and each factor on stock price volatility is tested. At the same time, the turnover rate is used as an intermediary variable to explore the path of resilience affecting stock price volatility through market sentiment transmission. Finally, taking ExxonMobil as an example, this paper analyzes its strategic practice and resilience system construction, further verifies the robustness of the empirical conclusions, and provides practical reference for the company to enhance the resilience of the industrial chain.
The study found that :
- There are significant differences in the level of resilience among companies. Integrated companies perform better by virtue of their synergy advantages in the whole industrial chain, and ExxonMobil performs the most prominent.
- The stronger the industrial chain resilience of international oil companies is, the lower the stock price volatility is, showing a significant risk buffer effect.
- Financial structure factor and innovation competition factor have a significant effect on reducing volatility, and operational efficiency and business synergy factor have a certain positive incentive to volatility ;
- Industrial chain resilience inhibits stock price volatility by reducing turnover. Based on the above conclusions, combined with ExxonMobil 's strategic practice, it is recommended that international oil companies attach great importance to the construction of industrial chain resilience, deepen the layout of the whole industrial chain, strengthen financial resilience management, increase R & D investment, and realize the coordinated development of traditional oil and gas and new energy business under the background of energy transformation.
Co-author/s:
Jianliang Wang, Dean of the School of Economics and Management, China University of Petroleum.
Mingming Liu, Associate Dean of the School of Economics and Management, China University of Petroleum.
Zhang Jianping
Speaker
Deputy Director
Institute for Natural Gas Economics, PetroChina Southwest Operations
Following its maturation in China's consumer finance sector, supply chain finance (SCF) is now expanding into industrial finance, with the natural gas industry attracting growing participation from diversified stakeholders. This paper analyzes the current developmental stage of natural gas SCF, identifying critical challenges including:
Operational Architecture:
Technical Infrastructure:
Empirical evidence demonstrates dual value creation:
Strategic Recommendations for Industry Advancement:
Regulatory Innovation:
Ecosystem Development:
CSR Enhancement:
This framework addresses key industry pain points by:
- Multi-stakeholder coordination gaps: Fragmented collaboration among participants
- Disjointed integration of "four flows": Mismatches among logistics, information, capital, and energy flow. T
- The study proposes blockchain-powered solutions to enhance SCF systems through three strategic dimensions:
Operational Architecture:
- Smart contract-driven transaction ecosystems
- Dynamic financing mechanisms with automated risk triggers
Technical Infrastructure:
- Hybrid blockchain platforms integrating permissioned chains (for core enterprises) and private chains (for SMEs)
- Privacy-preserving modules using zero-knowledge proofs (ZKPs)
Empirical evidence demonstrates dual value creation:
- Economic benefits: 28-42% reduction in financing costs for SMEs (Yangtze River Delta pilot data)
- Social value: 19% improvement in energy flow traceability compliance, crucial for carbon credit verification
Strategic Recommendations for Industry Advancement:
Regulatory Innovation:
- Develop energy-flow integrated regulatory frameworks under China's dual carbon goals
- Establish digital sandbox mechanisms for blockchain-finance convergence
Ecosystem Development:
- Build core enterprise-led consortium chains with tiered node networks:
- Tier-1 nodes: National oil companies (e.g., CNPC, CNOOC)
- Tier-2 nodes: Provincial pipeline operators
- Tier-3 nodes: LNG terminal operators
CSR Enhancement:
- Implement graded CSR evaluation systems for anchor enterprises
- Introduce blockchain-based green finance incentives
This framework addresses key industry pain points by:
- Providing tamper-proof trade scenarios through on-chain LNG documentation
- Mitigating information silos via cross-institutional data bridges
- Reducing contract default risks via smart contract auto-enforcement
Qing Li
Speaker
Senior Engineer
PetroChina Planning and Engineering Institute, China National Petroleum Cooperation
Integrated energy companies operate vast and complex supply chains encompassing exploration, refining, distribution, logistics, storage, and trading. These supply chains are significant contributors to global carbon dioxide emissions. In 2023, oil and gas production and transport generated approximately 5.81 billion tons of CO₂-equivalent emissions. In light of increasingly stringent carbon neutrality commitments, optimizing these networks more than operational efficiency—it calls for intelligent, low-carbon strategies grounded in advanced optimization, intelligent planning, and system-level coordination. This study presents a comprehensive supply chain optimization framework tailored for large-scale petroleum enterprises, with a focus on final petrochemical product planning. The framework spans the entire supply chain and integrates multiple geographically distributed refineries processing crude from diverse oil fields and transfer to different markets. A mathematical programming model is developed to maximize system-wide economic returns while explicitly incorporating carbon emissions as operational constraints. To assess the robustness and flexibility of the proposed model, sensitivity analysis and Monte Carlo simulations are conducted, quantifying the impact of carbon constraints on supply chain decisions. Results indicate that different final product types and amount combinations lead to varying benefits while simultaneously resulting in distinct emissions. The carbon emissions resulting from the production of chemical products, such as ethylene, are estimated 1.3 to 1.9 times higher than those from producing refinery products like gasoline and diesel. Under dynamic market conditions, by adjusting crude oil allocation, optimizing product yields, and enhancing inter-refinery resource coordination, it is possible to reduce emissions without incurring profit loss. When maintaining constant crude throughput and overall supply chain capacity, such internal optimizations can achieve carbon reductions ranging from 3.7% to 7.8%. This work highlights the practical potential of integrating digital tools and mathematical planning into the operational core of oil supply chains, offering a viable pathway for traditional energy producers to advance toward global decarbonization targets while sustaining economic competitiveness.
Co-author/s:
Qing Li, Senior Engineer, PetroChina Planning and Engineering Institute, China National Petroleum Cooperation.
Yanming Cao, Senior Engineer, PetroChina Planning and Engineering Institute, China National Petroleum Cooperation.
Co-author/s:
Qing Li, Senior Engineer, PetroChina Planning and Engineering Institute, China National Petroleum Cooperation.
Yanming Cao, Senior Engineer, PetroChina Planning and Engineering Institute, China National Petroleum Cooperation.
Pertamina as a State-Owned Energy Company has an obligation to distribute crude oil and other fuel and energy products throughout Indonesia to meet energy needs. So that, Pertamina has a wide distribution network that covers to the remote islands of Indonesia. There are 771 vessels with 1479 voyage orders/month using 209 ports to distribute the energy. It has a very complex challenge in terms of managing the oil and gas distribution system with multi-mode transportation, multi-products and multi-destinations.
To fulfill its responsibility, every month Pertamina carries out a “Master Program” for preparing Supply Scheduling Planning.
The Master Program involves 150 people from three large teams (icrude, fuel, and non-fuel) that manually determine each vessel’s schedule based on input from the planning team. The inputs are the most cost-efficient routes for fuel and non-fuel products and the government’s crude oil lifting schedule. The concurrent optimization process creates significant complexity as most routes will use the same ports and berthing facilities, making it more likely that berthing schedules will clash with each other and potentially lead to stockouts and inefficiencies in logistics costs. Since most of the process is done manually, the scheduler struggles to iterate to find the most efficient final schedule and to determine timely recovery actions when disruptions occur. This condition causes high supply chain costs due to suboptimal and unintegrated schedules, for example clashes between fuel and LPG schedules, resulting in high integrated port time (IPT).
To address these challenges, Pertamina launched a digital transformation initiative by developing Dynamic Scheduling and Automation System (DSAS). The team developed a data consolidation platform to integrate all data sources needed for the master program. After that, the data will be optimized by the system automatically to build the scheduling for Primary Distribution M+1 and M+2 (Fuel, LPG, Intermediate and Crude). The system also dynamically produces a rapid recovery action plan to overcome disruptions. The system also combines artificial intelligence (AI) technology to improve accuracy and achieve better optimization based on main objectives of Pertamina's supply chain, such as optimal logistic cost, optimal inventory resilience, and optimal fleet size. DSAS also produces a voyage order which will be the basis for the team in the field to move the ship.
Here are the benefits of innovation:
Co-author/s:
I Gusti Agung Gede Subrata, Analyst I Supply Chain Monitoring & Deviation Management, PT Pertamina (Persero).
To fulfill its responsibility, every month Pertamina carries out a “Master Program” for preparing Supply Scheduling Planning.
The Master Program involves 150 people from three large teams (icrude, fuel, and non-fuel) that manually determine each vessel’s schedule based on input from the planning team. The inputs are the most cost-efficient routes for fuel and non-fuel products and the government’s crude oil lifting schedule. The concurrent optimization process creates significant complexity as most routes will use the same ports and berthing facilities, making it more likely that berthing schedules will clash with each other and potentially lead to stockouts and inefficiencies in logistics costs. Since most of the process is done manually, the scheduler struggles to iterate to find the most efficient final schedule and to determine timely recovery actions when disruptions occur. This condition causes high supply chain costs due to suboptimal and unintegrated schedules, for example clashes between fuel and LPG schedules, resulting in high integrated port time (IPT).
To address these challenges, Pertamina launched a digital transformation initiative by developing Dynamic Scheduling and Automation System (DSAS). The team developed a data consolidation platform to integrate all data sources needed for the master program. After that, the data will be optimized by the system automatically to build the scheduling for Primary Distribution M+1 and M+2 (Fuel, LPG, Intermediate and Crude). The system also dynamically produces a rapid recovery action plan to overcome disruptions. The system also combines artificial intelligence (AI) technology to improve accuracy and achieve better optimization based on main objectives of Pertamina's supply chain, such as optimal logistic cost, optimal inventory resilience, and optimal fleet size. DSAS also produces a voyage order which will be the basis for the team in the field to move the ship.
Here are the benefits of innovation:
- Improved Efficiency & Optimization: Reduces manual work and errors. Optimize routes, loading/unloading times, and fuel consumption. Better asset utilization.
- Real-Time Data & Visibility: Enables live updates on delays. Supports faster decision-making and responsive planning.
- Cost Savings: Minimizes demurrage charges. Reduces fuel costs and unnecessary voyages. Avoids costly planning mistakes or double bookings.
- Scenario Planning & Forecasting: Allow testing different planning scenarios (e.g., supply shocks, maintenance outages). Supports strategic planning and long-term logistics optimization.
Co-author/s:
I Gusti Agung Gede Subrata, Analyst I Supply Chain Monitoring & Deviation Management, PT Pertamina (Persero).
Indonesia is the largest archipelago country in the world. This makes vessels become the most widely used means of transportation to distribute energy in this country. As a state-owned energy company in Indonesia, Pertamina has a responsibility to distribute energy all over the country. There are 771 vessels with 1479 voyage orders/month using 209 ports to distribute the energy. The problem is an inefficient port utilization makes high vessel delays and high integrated port time.
Based on that problem, Pertamina carried out Integrated Logistics Optimization (ILO). It is used to monitor Pertamina’s marine operations, which include the movement and activities of vessels and ports. The aim is to provide real-time operational information and to improve vessel and port performance. With ILO Mobile, users at ports can access the system every day, anytime, anywhere to make Digital Voyage Orders (tracking orders), track activities and real-time ship positions, produce documents and reports in digital format, schedule ships mooring digitally, and have real-time Integrated Port Time (IPT). Meanwhile, for the captain and the crew, ILO is useful for notification of voyage orders from Pertamina, status updates, and vessel activity in real time, making noon reports online, submitting ETA and ATA in real time, notification of ship mooring schedules, and developing a pumping log report digitally.
One of the main aspects managed by ILO Mobile is calculation of freight costs carried out between sub holdings in Pertamina Group from hundreds of ships and thousands of voyages. Freight cost includes the cost while the ship is sailing and at the port. With ILO Mobile, all calculations can be done automatically which can directly ensure the level of accuracy and efficiency in the supply chain of product transportation from one point to another.
This application can be accessed by Cargo Planners, Programmers, Ship Administrators, Ship Representatives, Surveyors, and Cargo Owners with various superior features as follows:
ILO Mobile plays an important role for Pertamina's business in maintaining data validity and oil flow stability. ILO reduces the risk of cost calculation errors that can affect the Cost of Goods Sold (COGS) and product selling prices.
Co-author/s:
Putu Yunik Tri Wedayanti, Manager Sea Transportation Optimization, PT Pertamina (Persero).
Based on that problem, Pertamina carried out Integrated Logistics Optimization (ILO). It is used to monitor Pertamina’s marine operations, which include the movement and activities of vessels and ports. The aim is to provide real-time operational information and to improve vessel and port performance. With ILO Mobile, users at ports can access the system every day, anytime, anywhere to make Digital Voyage Orders (tracking orders), track activities and real-time ship positions, produce documents and reports in digital format, schedule ships mooring digitally, and have real-time Integrated Port Time (IPT). Meanwhile, for the captain and the crew, ILO is useful for notification of voyage orders from Pertamina, status updates, and vessel activity in real time, making noon reports online, submitting ETA and ATA in real time, notification of ship mooring schedules, and developing a pumping log report digitally.
One of the main aspects managed by ILO Mobile is calculation of freight costs carried out between sub holdings in Pertamina Group from hundreds of ships and thousands of voyages. Freight cost includes the cost while the ship is sailing and at the port. With ILO Mobile, all calculations can be done automatically which can directly ensure the level of accuracy and efficiency in the supply chain of product transportation from one point to another.
This application can be accessed by Cargo Planners, Programmers, Ship Administrators, Ship Representatives, Surveyors, and Cargo Owners with various superior features as follows:
- Time Effectiveness Score which allows companies to assess the level of optimization of the entire ship's operational process. Given that ship operational costs are very large and time efficiency is a key factor in cost savings.
- Multi Dashboard Analytic helps the port in determining improvement priorities based on more accurate and in-depth data analysis.
- Chat Consolidation Live which allows the operational team to get ship activity data updates in chat groups directly. This speeds up the decision-making process and operational improvements.
- Auto Consolidation System which automatically consolidates and validates transactions so that time and resource efficiency is created.
ILO Mobile plays an important role for Pertamina's business in maintaining data validity and oil flow stability. ILO reduces the risk of cost calculation errors that can affect the Cost of Goods Sold (COGS) and product selling prices.
Co-author/s:
Putu Yunik Tri Wedayanti, Manager Sea Transportation Optimization, PT Pertamina (Persero).
In recent years, the global energy supply chain has faced unprecedented challenges, particularly against the backdrop of frequent geopolitical conflicts and escalating international trade barriers. As one of the key modes of global energy transportation, the arrival frequency of LNG carriers has significantly declined, while the volatility of transportation cycles has increased markedly. This has introduced substantial uncertainty to the operation of LNG receiving terminals. Such instability has not only intensified the difficulty of inventory management but has also imposed higher demands on pressure regulation of storage tanks, the scheduling of key equipment, and overall operational efficiency. To address these challenges, this study develops a multidimensional energy consumption optimization model based on the actual process flow of LNG receiving terminals. The model comprehensively considers several critical factors, including fluctuations in vessel arrivals, pressure balance control in storage tanks, energy consumption calculations for pumps and compressors, and the handling of BOG. Adopting a holistic system perspective, the model coordinates the dynamic relationship between upstream resource supply and downstream user demand. The study demonstrates that through rational scheduling of equipment operations within the LNG receiving terminal, it is possible to achieve energy conservation and emission reduction, even under conditions of uncertain LNG carrier arrivals and fluctuating downstream demand. Moreover, the implementation of a flexible scheduling mechanism enhances the terminal’s resilience to the volatility of the international energy market, thereby supporting the efficient operation of LNG receiving terminals amid global energy market turbulence.
Objectives 75: One of the pillars of hydraulic fracturing services is the tailored supply chain workflows. Localization strengthens supply chain elements by procuring parts and services locally which plays a massive role in terms of pricing, lead time, and storage. This study addresses a case history located in KSA for a hydraulic fracturing operations start-up and evaluates how effective supply chain management can result in a significant synergy and improved service delivery of hydraulic fracturing operations.
Methodology 100: The method starts by describing the fracturing operations start-up from zero to 200 plus employees and to building two complete heavy-weight frac packages with capabilities to deliver high-end fracturing services at extreme pressure and temperature. A robust supply-chain organization, which includes the industry standards and business processes, enabled the supply-chain workflow to be more effective both internally within the company and externally. Key metrics that were considered in this study included cost reduction, lead time requirement and materials/product quality. The study will show how the solid and well-followed procurement standards led to cost reduction and lead time optimization.
Results 200: Supply chain and logistics management for hydraulic fracturing included procurement and delivery of the required materials at minimum cost. A strategic plan was initiated to request proposals from local and international suppliers for a specific scope for the high-spend products. 24 vendors, out of 49 invited vendors, submitted their proposals including technical data, prices, and incoterms. An initial saving percentage exceeded 40% by selecting domestic chemical manufacturers and committing to a certain purchase over a planned operational period. Overall, materials cost from direct and indirect suppliers was reduced by more than 20% within 12 months period. A significant reduction of lead time was achieved through several initiatives including the reduction of in-kingdom stock. For instance, personal protective equipment supply process was reduced by more than 70%.
Novelty 75: This paper evaluates, for the first time, how effective supply chain and procurement processes can positively reflect on fracturing operations start-ups. It also spotlights the importance of localization in terms of materials supply and spare part and maintenance readiness.
Methodology 100: The method starts by describing the fracturing operations start-up from zero to 200 plus employees and to building two complete heavy-weight frac packages with capabilities to deliver high-end fracturing services at extreme pressure and temperature. A robust supply-chain organization, which includes the industry standards and business processes, enabled the supply-chain workflow to be more effective both internally within the company and externally. Key metrics that were considered in this study included cost reduction, lead time requirement and materials/product quality. The study will show how the solid and well-followed procurement standards led to cost reduction and lead time optimization.
Results 200: Supply chain and logistics management for hydraulic fracturing included procurement and delivery of the required materials at minimum cost. A strategic plan was initiated to request proposals from local and international suppliers for a specific scope for the high-spend products. 24 vendors, out of 49 invited vendors, submitted their proposals including technical data, prices, and incoterms. An initial saving percentage exceeded 40% by selecting domestic chemical manufacturers and committing to a certain purchase over a planned operational period. Overall, materials cost from direct and indirect suppliers was reduced by more than 20% within 12 months period. A significant reduction of lead time was achieved through several initiatives including the reduction of in-kingdom stock. For instance, personal protective equipment supply process was reduced by more than 70%.
Novelty 75: This paper evaluates, for the first time, how effective supply chain and procurement processes can positively reflect on fracturing operations start-ups. It also spotlights the importance of localization in terms of materials supply and spare part and maintenance readiness.


