Optimization for Design and Operation of Natural Gas Transmission Networks

Abstract

This study addresses the problem of designing a new natural gas transmission network or expanding an existing network while minimizing the total investment and operating costs. A substantial reduction in costs can be obtained by effectively designing and operating the network. A well-designed network helps natural gas companies minimize the costs while increasing the customer service level. The aim of the study is to determine the optimum installation scheduling and locations of new pipelines and compressor stations. On an existing network, the model also optimizes the total flow through pipelines that satisfy demand to determine the best purchase amount of gas.

A mixed integer nonlinear programming model for steady-state natural gas transmission problem on tree-structured network is introduced. The problem is a multi-period model, so changes in the network over a planning horizon can be observed and decisions can be made accordingly in advance. The problem is modeled and solved with easily accessible modeling and solving tools in order to help decision makers to make appropriate decisions in a short time. Various test instances are generated, including problems with different sizes, period lengths and cost parameters, to evaluate the performance and reliability of the model. Test results revealed that the proposed model helps to determine the optimum number of periods in a planning horizon and the crucial cost parameters that affect the network structure the most.