Multiple criteria decision making (MCDM) process in selecting location for floating storage and regasification unit (FSRU): A case study of Bali island project

This paper presents a case study in selecting the best location for a Floating Storage and Regasification Unit (FSRU) in Bali. FSRU is an alternative to replace a conventional shore LNG terminal. The selection involves several criteria/attributes that can be grouped into two general attributes, namely qualitative and quantitative attribute. Multiple Criteria Decision Making (MCDM) approach is utilized to solve the selection problem, considering the capability of this method in solving multi-criteria problem with mutual conflict. Qualitative criteria is evaluated using AHP method to calculate weight of each criteria, and decision matrix algorithm is then utilized to convert preference of stakeholders into, consecutively, probability assignment, total probability assignment and preference degree. Quantitative criteria are also converted into preference degree and after combining with the preference degree of qualitative attribute, entropy method is then used to rank the alternatives. Selected location would be the alternative having the highest entropy. Four alternatives are under consideration; Benoa, Celukan Bawang, Pemaron and Gilimanuk.This research found that Celukan Bawang is the best location for the FSRU.