Skip to main content

Optimization Models in the Natural Gas Industry

  • Chapter
  • First Online:
Handbook of Power Systems I

Part of the book series: Energy Systems ((ENERGY))

Abstract

With the surge of the global energy demand, natural gas plays an increasingly important role in the global energy market. To meet the demand, optimization techniques have been widely used in the natural gas industry, and has yielded a lot of promising results. In this chapter, we give a detailed discussion of optimization models in the natural gas industry, with the focus on the natural gas production, transportation, and market.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Al-Hussainy R (1967) Transient flow of ideal and real gases through porous media. PhD thesis, Texas A&M University, College Station

    Google Scholar 

  • Annual Energy Review (AER) (2009) Technical Report DOE/EIA-0384(2008), US Department of Energy, Energy Information Administration, 26 June 2009

    Google Scholar 

  • Avery W, Brown GG, Rosenbranz JA, Wood RK (1992) Optimization of purchase, storage and transmission contracts for natural gas utilities. Oper Res 40(3):446–462

    Article  Google Scholar 

  • Babu BV, Angira R, Chakole PG, Syed Mubeen JH (2008) Optimal design of gas transmission network using differential evolution. http://discovery.bits-pilani.ac.in/discipline/chemical/BVb/RevisedBabRakPalMub%20CIRAS-2003.pdf

  • Bazaraa M, Sherali HD, Shetty CM (2006) Nonlinear programming, 3rd edn. Wiley, New York

    Book  MATH  Google Scholar 

  • Beggs HD (1984) Gas production operations. Oil Gas Consultants International Inc., Tulsa, Oklahoma

    Google Scholar 

  • Boots MG, Rijkers FAM, Hobbs BF (2004) Modeling the role of trading companies in the downstream European gas market: A successive oligopoly approach. Energ J 25(3):73–102

    Google Scholar 

  • BP (2008) BP Statistical Review of World Energy 2008. London, UK, June 2008

    Google Scholar 

  • Breton N, Zaccour Z (2001) Equilibria in an asymmetric duopoly facing a security constraint. Energ Econ 25:457–475

    Article  Google Scholar 

  • Brooks RE (2003) Optimizing complex natural gas models. http://rbac.com/Articles/tabid/63/Default.aspx

  • Brooks RE, Neill CP (2003) Natural gas operations optimizing system. http://rbac.com/Articles/tabid/63/Default.aspx

  • Cameron F (2007) The north stream gas pipeline project and its strategic implications. Briefing Note for The European Parliament’s committee on Petitions, December 2007

    Google Scholar 

  • Chabar RM, Pereira MVF, Granville S, Barroso LA, Iliadis N (2006) Optimization of fuel contracts management and maintenance scheduling for thermal plants under price uncertainty. In Proceedings of the 2006 Power Systems Conference Expo (PSCE 06), October, pp. 923–930

    Google Scholar 

  • Chebouba A, Yalaoui F, Smati A, Amodeo L, Younsi K, Tairi A (2009) Optimization of natural gas pipeline transportation using at colony optimization. Comput Oper Res 36(6):1916–1923

    Article  MATH  Google Scholar 

  • Cottle RW, Pang JS, Stone RE (1992) Linear complementarity problem. Academic Press, NY

    MATH  Google Scholar 

  • De Wolf D, de Bisthoven OJ, Smeers Y (1991) The simplex algorithm extended to piecewise linearly constrained problems I: The method and an implementation, CORE DP No. 9119, Universite Catholique de Louvain, Belgium

    Google Scholar 

  • De Wolf D, Smeers Y (1996) Optimal dimensioning of pipe networks with application to gas transmission networks. Oper Res 44:596–608

    Article  MATH  Google Scholar 

  • De Wolf D, Smeers Y (1997) A stochastic version of a Stackelberg Nash-Cournot equilibrium model. Manag Sci 43(2):190–197

    Article  MATH  Google Scholar 

  • De Wolf D, Smeers Y (2000) The gas transmission problem solved by an extension of the simplex algorithm. Manag Sci 46:1454–1465

    Article  MATH  Google Scholar 

  • Edgar TF, Himmelblau DM (2001) Optimization of chemical processes. McGraw-Hill, New York

    Google Scholar 

  • Edgar TF, Himmelblau DM, Bickel TC (1978) Optimal design of gas transmission networks. Soc Petrol Eng J 30:96–104

    Google Scholar 

  • Energy Information Administration (2003) The national energy modeling system: an overview, natural gas transmission and distribution module. http://www.eia.doe.gov/oiaf/aeo/overview/nat_gas.html

  • Facchinei F, Pang JS (2003) Finite-dimensional variational inequalities and complementarity problems, vol. I and II. Springer, New York

    Google Scholar 

  • Gabriel SA, Manik J, Vikas S (2003) Computational experience with a large-scale, multi period, spatial equilibrium model of the North America natual gas system. Networks Spatial Econ 3:97–122

    Article  Google Scholar 

  • Gabriel SA, Kiet S, Zhuang J (2005) A mixed complementarity-based equilibrium model of natural gas markets. Oper Res 53(5):799–818

    Article  MATH  MathSciNet  Google Scholar 

  • Goldberg DE (1983) Computer-aided gas pipeline operation using genetic algorithms and rule learning. PhD thesis, University of Michigan

    Google Scholar 

  • Hiriart-Urruty JB, Lemarechal C (1993) Convex analysis and minimization algorithms Springer, Berlin

    Google Scholar 

  • Horne RN (2002) Optimization applications in oil and gas recovery. In: Handbook of applied optimization, pp. 808–813. Oxford University Press, New York

    Google Scholar 

  • Horst R, Pardalos PM, Thoai NV (2000) Introduction to global optimization, 2nd edn. Kluwer, The Netherland

    Book  MATH  Google Scholar 

  • International Energy Outlook 2009 Technical Report DOE/EIA-0484(2009), US Department of Energy, Energy Information Administration, 27 May 2009. Chapter 3 – Natural Gas

    Google Scholar 

  • Kallrath J, Wilson JM (1997) Business Optimization using Mathematical Programming. MacMillan Business

    Google Scholar 

  • Locatelli M, Thoai NV (2000) Finite exact branch-and-bound algorithms for concave minimization over polytopes. J Global Optim 18:107–128

    Article  MATH  MathSciNet  Google Scholar 

  • Luo ZQ, Pang JS, Ralph D (1996) Mathematical programs with equilibrium constraints. Cambridge University Press, London

    Book  Google Scholar 

  • Mantini LA, Beyer WA (1979) Optimization of natural gas production by waterflooding. Appl Math Optim 5:101–116

    Article  MATH  MathSciNet  Google Scholar 

  • Midthun KT (2007) Optimization models for liberalized natural gas markets. PhD thesis, Norwegian University of Science and Technology, 2007

    Google Scholar 

  • Munoz J, Jimenez-Redondo N, Perez-Ruiz J, Barquin J (2003) Natural gas network modeling for power systems reliability studies. 2003 IEEE Bologna PowerTech Conference, 23–26 June, Bologna, Italy, 2003

    Google Scholar 

  • Murray JE, Edgar TF (1978) Optimal scheduling of production and compression in gas fields. SPE J Petrol Technol 30:109–116

    Google Scholar 

  • Murty KG (1988) Linear complementarity, linear and nonlinear programming. Helderman. http://ioe.engin.umich.edu/people/fac/books/murty/linear_complementarity_webbook/

  • Nemhauser GL, Wolsey LA (1999) Integer and combinatorical optimization. Wiley, New York

    Google Scholar 

  • O’Neil RP, Williard M, Wilkins B, Pike R (1979) A mathematical programming model for allocation of natural gas. Oper Res 27(5):857–873

    Article  Google Scholar 

  • Pereira MVF, Pinto LMVG (1991) Multi-stage stochastic optimization applied to energy planning. Math Program 52:359–375

    Article  MATH  MathSciNet  Google Scholar 

  • Peretti A, Toth P (1982) Optimization of a pipeline for the natural gas transport. Eur J Oper Res 11:247–254

    Article  Google Scholar 

  • Rios-Mercado (2002) Natural gas pipleline optimization. In: Handbook of applied optimization. Oxford University Press, New York, pp. 813–826

    Google Scholar 

  • Rios-Mercado RZ, Kim S, Boyd EA (2006) Efficient operation of natural gas transmission systems: a network-based heuristic for cyclic structures. Comput Oper Res 33:23–51

    Article  Google Scholar 

  • Rosen JB (1960) The gradient projection method for nonlinear programming. Part I. linear constraints. SIAM J 22:181–217

    Google Scholar 

  • Rothfarb B, Frank H, Rosenbaum DM, Steiglitz K, Kleitman DJ (1970) Optimal design of offshore natural-gas pipeline systems. Oper Res 18:992–1020

    Article  Google Scholar 

  • Tussing AR, Barlow CC (1984) The natural gas industry: evolution, structure, and economics. Ballinger Publishing Company, Cambridge, MA

    Google Scholar 

  • US Department of Energy, Energy Information Administration (2008) International Energy Annual 2006, 25 September 2008

    Google Scholar 

  • Wattenbarger RA (1970) Maximizing seasonal withdrawal from gas storage reservoir. SPE J Petrol Technol 22:994–998

    Google Scholar 

  • Wolsey LA (1998) Integer programming. Wiley, New York

    MATH  Google Scholar 

  • Worldwide Look at Reserves and Production (2008) Oil Gas J 106(48):22–23

    Google Scholar 

  • Wu S, Rios-Mercado RZ, Boyd EA, Scott LR (2000) Model relaxations for the fuel cost minimization of steady-state gas pipeline networks. Math Comput Model 31:197–220

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Qipeng P. Zheng .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2010 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Zheng, Q.P., Rebennack, S., Iliadis, N.A., Pardalos, P.M. (2010). Optimization Models in the Natural Gas Industry. In: Pardalos, P., Rebennack, S., Pereira, M., Iliadis, N. (eds) Handbook of Power Systems I. Energy Systems. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-02493-1_6

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-02493-1_6

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-02492-4

  • Online ISBN: 978-3-642-02493-1

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics