Consensual decision-making model based on game theory for LNG processes

Highlights: ► A Decision Making (DM) approach for LNG projects based on game theory is presented. ► DM framework was tested with two different cases, using analytical models and a simple LNG process. ► The problems were solved by using a Genetic Algorithm (GA) binary coding and Nash-GA. ► Integrated models from the design and optimization of the process could result in more realistic outcome. ► The major challenge in such a framework is related to the uncertainties in the market models. - Abstract: Decision-Making (DM) in LNG projects is a quite complex process due to the number of actors, approval phases, large investments and capital return in the long time. Furthermore, due to the very high investment of a LNG project, a detailed and efficient DM process is required in order to minimize risks. In this work a Decision-Making (DM) approach for LNG projects is presented. The approach is based on a consensus algorithm to address the consensus output over a common value using cost functions within a framework based on game theory. The DM framework was tested with two different cases. The first case was used for evaluating the performance of the framework with analytical models, while the second case corresponds to a simple LNG process. The problems were solved by using a Genetic Algorithm (GA) binary coding and Nash-GA. The results of the DM framework in the LNG project indicate that considering an integrated DM model and including the markets role from the design and optimization of the process more realistic outcome could be obtained. However, the major challenge in such a framework is related to the uncertainties in the market models.