A Novel Approach for Multi-Facility Capacity Expansion and Contraction Problems Under Uncertainty
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In this work we present a novel solution strategy for the development of processing facilities for shale natural gas fields that is more sustainable and cost effective. The foundation of our methodology is to utilize flexible facilities that are comprised of transportable modular processing units as opposed to fixed capacity permanent facilities. These processing units can be purchased for and reallocated between facilities at points within a discretized finite planning horizon. This in turn allows the capacity of each facility the ability to adapt through either expansion or contraction with respect to the uncertain and dynamic influent flow-rate. We illustrate that our methodology as applied to a random set of test cases with three or more facilities is at worst identical to utilizing permanent facilities and on average at least 12% more cost effective.
Allen, Richard C. (2018). A Novel Approach for Multi-Facility Capacity Expansion and Contraction Problems Under Uncertainty. Master's thesis, Texas A & M University. Available electronically from