A comprehensive annual delivery program for upstream liquefied natural gas supply chain

•We develop a comprehensive model for LNG ADP problem.•We model several practical aspects of ADP problem overlooked in the literature.•We provide insights on how additional aspects of the model affect the ADP.•We develop a novel solution that affectively solves realistic size problems.•We establish how various problem parameters affect solution quality. Developing a cost-effective annual delivery program (ADP) is a challenging task for liquefied natural gas (LNG) suppliers, especially for LNG supply chains with large number of vessels and customers. Given significant operational costs in LNG delivery operations, cost-effective ADPs can yield substantial savings, adding up to millions. Providing an extensive account of supply chain operations and contractual terms, this paper aims to consider a realistic ADP problem faced by large LNG suppliers; suggest alternative delivery options, such as split-delivery; and propose an efficient heuristic solution which outperforms commercial optimizers. The comprehensive numerical study in this research demonstrates that contrary to the common belief in practice, split-delivery may generate substantial cost reductions in LNG supply chains.