© XII. International Logistics and Supply Chain Congress October 30-31, 2014, Istanbul, TURKIYE A TERMINAL LOCATION SELECTION PROBLEM FOR TURKEY’S NATURAL GAS SUPPLY Şaban Emre Kartal 1 , Emrah Bulut 2 , Yusuf Volkan Aydoğdu 3 , Yunus Emre Şenol 4 Abstract ⎯ Turkey is an emerging country where energy demand is increasing with each passing day. For supplying this demand, many different kind sources of energy such as wind, nuclear and thermal are utilized. Natural gas is also one of the most important energy sources due to its relative low cost and environmental friendly nature. Also diversification of energy source, like herein mentioned natural gas and the liquid form of natural gas which is called as LNG, among different sources is an important issue for an energy dependent country. Transportation and storage of natural gas in liquid form, widely called as LNG all over the world, is gaining importance parallel with the increase in international trade of natural gas as well. This paper identifies the major components used for transportation and handling of LNG by sea, such as marine terminals, floating storage and re-gasification units (FSRU). There already exist two different terminal and re-gasification units in Turkey operating. However, it is considered that more terminals are going to be needed in the close future. The location of LNG terminal and FSRU plays a significant role for the logistics of LNG. In this paper, the location selection problem for the LNG terminal is investigated by using fuzzy multi- attribute decision model. Keywords ⎯ Natural Gas, LNG Terminal, Energy diversification, Turkey, Generic fuzzy AHP INTRODUCTION Increase in production, consumption and international trade figures globally, the revolutionary discovery of shale gas and also the environmental protection policies brought natural gas in to a “Golden Age”. A set of “Golden Rules for a Golden Age of Gas” have already been developed [1]. Consumption of natural gas in Turkey is also increasing parallel to socio-economic development, which can be described as an indicator for economic growth [2].As being an energy dependent country, Turkey is importing her natural gas demand by 98% in different terms [3]. As the technology of processing natural gas into liquid form -widely called as LNG- developed and the costs of utilizing LNG infrastructure both in the terms of shore facilities like LNG terminals, maritime LNG carriers and also floating storage and regasification units (FSRU) become more feasible. For example; the new building price for a 138000 cbm capacity LNG carrier is about 130 million USD in year 2013 while it was about 280 million USD in year 1995[4]. LNG marine terminals, LNG ships, gasification and regasification units can be counted as the main legs of maritime LNG logistics. All these important components listed above are illustrated in Figure 1 and will be explained briefly in the following section of this paper. EXPORTER ----- MARINE TRANSPORTATION ----- IMPORTER Figure 1. Main components of maritime LNG supply chain 1 ŞabanEmreKartal, RecepTayyip Erdogan University ,Department of Maritime Transportation,Rize Turkey, yedideniz@gmail.com 2 Emrah Bulut,YıldızTechnical University, Department of Business Administration, Istanbul, Turkey, bltemrah@gmail.com 3 Yusuf Volkan Aydoğdu, Istanbul Technical University, Maritime Department, Istanbul, Turkey, yvaydogdu@itu.edu.tr 4 Yunus Emre Şenol, Istanbul Technical University, Maritime Department, Istanbul, Turkey, emre_ydo@hotmail.com.tr GAS RESERVES LNG TERMINAL ;LIQUEFACTION & LOADING LNG TANKERS LNG TERMINAL ; DISCHARGING & REGASIFICATION END USERS