RISK MANAGEMENT IN LIQUEFIED NATURAL GAS PORTS AND MARINE TERMINALS SUPPLY CHAINS
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Due to its environmental attributes, Liquefied Natural Gas (LNG) as a clean fossil fuel source of energy has witnessed a steady increase in demand worldwide over the last decade. This increase is mainly attributed to higher demand from the power generation sector as well as from domestic and industrial usages .This growing role of LNG among competing energy sources has raised concerns over the safety and security of the LNG chain of production, transport and distribution and its related infrastructure. Within this context, LNG ports and marine terminals, being strategically located at the midstream of the LNG Supply Chain (SC), are further exposed to safety and security risks and represent credible targets for international terrorism. Ensuring uninterrupted, robust and resilient LNG SC requires first, adequate management of safety and security risks in LNG ports and marine terminals. While each discipline of risk, be it safety or security, has received significant attention both in theory and practice, less attention was given to the management of interfaces and shared impacts among LNG Ports safety and security risks which led to the existence of gaps in the risk management (RM) systems of LNG ports and may represent a major source of risk and disruption to LNG ports. This research addresses such gaps which are poorly addressed in the current literature and proposes a holistic and integrated approach to the issues of LNG ports safety and security risks assessment and management. It also aims to model safety and security RM from a SC perspective and examines the relationships and shared impacts among LNG ports safety and security risks in the present context of increased LNG demand worldwide in the post 9/11 terrorism era. A unique combination of multiple methods within port and maritime SCs, including a Delphi survey, quantitative survey, Soft Systems Methodology (SSM) and a focus group expert consultation, is applied to reformulate the prevailing RM approach marked by dichotomy and a disciplinary silo and to propose a more enhanced and holistic approach to safety and security RM. The results of the study confirm that an integrated and holistic approach to the issue of RM in LNG ports and marine terminals is necessary to cost-effectively address safety and security risks and ensure reliable and resilient LNG SCs. Furthermore, a practical framework, in the form of a conceptual model, for LNG ports risks and emergencies management is proposed which integrates all facets of safety and security risks and emergencies management, including risk prevention, mitigation, emergency planning and response and port business continuity. The proposed conceptual model shows how the proposed RM approach can be practically applied in the context of LNG ports in the Middle East and North Africa (MENA) region, as well as in any LNG port worldwide which lacks an integrated approach to risks and emergencies management.
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