Short-term supply chain management in upstream natural gas systems

Natural gas supply chain planning and optimization is important to ensure security and reliability of natural gas supply. However, it is challenging due to the distinctive features of natural gas supply chains. These features arise from the low volumetric energy density of natural gas and the significance of gas quality and pressure in supply chain operations. Contracts play a central role in the entire supply chain due to high capital cost, specificity and investment risks associated with gas infrastructure. An upstream production planning framework is crucial for supply-side optimization and scenario evaluation in the natural gas supply chain. The technical features of upstream systems imply that the most efficient mode of operation is by single entity central control of the system, while their economics favor involvement of multiple parties in ownership. To resolve this conflict, upstream systems are generally operated by a single operator on the basis of governing rules that stem from agreements between the upstream operator, multiple stakeholders and consumer facilities. These agreements govern production sharing, operational strategy and gas sales in the upstream system. A short-term operational planning framework (with a 2-12 weeks planning horizon) for upstream natural gas systems is presented that can help to maximize production infrastructure utilization and aid in its management, minimize costs and meet production targets while simultaneously satisfying governing rules. Its requirements are inspired by the Sarawak Gas Production System (SGPS), an offshore gas production system in the South China Sea, which supplies the liquefied natural gas (LNG) plant complex at Bintulu in East Malaysia. This is the first attempt to formulate a comprehensive modeling framework for an upstream gas production system that includes a production infrastructure model and a methodology to incorporate governing rules.

Department dc:contributor.department

Massachusetts Institute of Technology. Dept. of Chemical Engineering.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2009

Author dc:creator

• Selot, Ajay

Advisor dc:contributor.advisor

• Paul I. Barton.

• Chemical Engineering.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/46375

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/46375