IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v243y2015i2p647-657.html
   My bibliography  Save this article

Adding flexibility in a natural gas transportation network using interruptible transportation services

Author

Listed:
  • Fodstad, Marte
  • Midthun, Kjetil T.
  • Tomasgard, Asgeir

Abstract

We present a modeling framework for analyzing if the use of interruptible transportation services can improve capacity utilization in a natural gas transportation network. The network consists of two decision makers: the transmission system operator (TSO) and a shipper of natural gas. The TSO is responsible for the routing of gas in the network and allocates capacity to the shipper to ensure that the security of supply in the network is within given bounds. The TSO can offer two different types of transportation services: firm and interruptible. Only firm services have a security of supply measure, while the interruptible services can freely be interrupted whenever the available capacity in the transportation network is not sufficiently large. We apply our modeling framework on a case study with realistic data from the Norwegian Continental Shelf. The results indicate substantial increased throughput and profits with the introduction of interruptible services.

Suggested Citation

  • Fodstad, Marte & Midthun, Kjetil T. & Tomasgard, Asgeir, 2015. "Adding flexibility in a natural gas transportation network using interruptible transportation services," European Journal of Operational Research, Elsevier, vol. 243(2), pages 647-657.
  • Handle: RePEc:eee:ejores:v:243:y:2015:i:2:p:647-657
    DOI: 10.1016/j.ejor.2014.12.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S037722171400993X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejor.2014.12.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Larry E. Ruff, 2012. "Rethinking Gas Markets--and Capacity," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 3).
    2. Rolf Golombek & Eystein Gjelsvik & Knut Einar Rosendahl, 1998. "Increased Competition on the Supply Side of the Western European Natural Gas Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-18.
    3. Miguel Vazquez & Michelle Hallack & Jean-Michel Glachant, 2012. "Designing the European Gas Market: More Liquid & Less Natural?," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 3).
    4. Bopp, A. E. & Kannan, V. R. & Palocsay, S. W. & Stevens, S. P., 1996. "An optimization model for planning natural gas purchases, transportation, storage and deliverability," Omega, Elsevier, vol. 24(5), pages 511-522, October.
    5. Michal Kaut & Hercules Vladimirou & Stein W. Wallace & Stavros A. Zenios, 2007. "Stability analysis of portfolio management with conditional value-at-risk," Quantitative Finance, Taylor & Francis Journals, vol. 7(4), pages 397-409.
    6. Doane, Michael J. & McAfee, R. Preston & Nayyar, Ashish & Williams, Michael A., 2008. "Interpreting concentration indices in the secondary market for natural gas transportation: The implication of pipeline residual rights," Energy Economics, Elsevier, vol. 30(3), pages 807-817, May.
    7. Lars Hellemo & Kjetil Midthun & Asgeir Tomasgard & Adrian Werner, 2013. "Multi-Stage Stochastic Programming for Natural Gas Infrastructure Design with a Production Perspective," World Scientific Book Chapters, in: Horand I Gassmann & William T Ziemba (ed.), Stochastic Programming Applications in Finance, Energy, Planning and Logistics, chapter 10, pages 259-288, World Scientific Publishing Co. Pte. Ltd..
    8. Ulstein, Nina Linn & Nygreen, Bjorn & Sagli, Jan Richard, 2007. "Tactical planning of offshore petroleum production," European Journal of Operational Research, Elsevier, vol. 176(1), pages 550-564, January.
    9. Keyaerts, Nico & Hallack, Michelle & Glachant, Jean-Michel & D'haeseleer, William, 2011. "Gas market distorting effects of imbalanced gas balancing rules: Inefficient regulation of pipeline flexibility," Energy Policy, Elsevier, vol. 39(2), pages 865-876, February.
    10. Guldmann, Jean-Michel & Wang, Fahui, 1999. "Optimizing the natural gas supply mix of local distribution utilities," European Journal of Operational Research, Elsevier, vol. 112(3), pages 598-612, February.
    11. Rolf Golombek & Eystein Gjelsvik & Knut Einar Rosendahl, 1995. "Effects of Liberalizing the Natural Gas Markets in Western Europe," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 85-112.
    12. Alonso, Alejandro & Olmos, Luis & Serrano, Miguel, 2010. "Application of an entry-exit tariff model to the gas transport system in Spain," Energy Policy, Elsevier, vol. 38(9), pages 5133-5140, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ordoudis, Christos & Delikaraoglou, Stefanos & Kazempour, Jalal & Pinson, Pierre, 2020. "Market-based coordination of integrated electricity and natural gas systems under uncertain supply," European Journal of Operational Research, Elsevier, vol. 287(3), pages 1105-1119.
    2. Raheli, Enrica & Wu, Qiuwei & Zhang, Menglin & Wen, Changyun, 2021. "Optimal coordinated operation of integrated natural gas and electric power systems: A review of modeling and solution methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    3. Grimm, Veronika & Grübel, Julia & Schewe, Lars & Schmidt, Martin & Zöttl, Gregor, 2019. "Nonconvex equilibrium models for gas market analysis: Failure of standard techniques and alternative modeling approaches," European Journal of Operational Research, Elsevier, vol. 273(3), pages 1097-1108.
    4. Syed, Zaki & Lawryshyn, Yuri, 2020. "Risk analysis of an underground gas storage facility using a physics-based system performance model and Monte Carlo simulation," Reliability Engineering and System Safety, Elsevier, vol. 199(C).
    5. Ordoudis, Christos & Pinson, Pierre & Morales, Juan M., 2019. "An Integrated Market for Electricity and Natural Gas Systems with Stochastic Power Producers," European Journal of Operational Research, Elsevier, vol. 272(2), pages 642-654.
    6. Wang, Jian & Xin, Hao & Xie, Ning & Wang, Yong, 2022. "Equilibrium models of coordinated electricity and natural gas markets with different coupling information exchanging channels," Energy, Elsevier, vol. 239(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Veronika Grimm & Lars Schewe & Martin Schmidt & Gregor Zöttl, 2019. "A multilevel model of the European entry-exit gas market," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 89(2), pages 223-255, April.
    2. Brandão, António & Soares, Isabel & Sarmento, Paula & Resende, Joana & Pinho, Joana, 2014. "Regulating international gas transport: Welfare effects of postage stamp and entry–exit systems," Energy, Elsevier, vol. 69(C), pages 86-95.
    3. Vazquez, Miguel & Hallack, Michelle, 2015. "Interaction between gas and power market designs," Utilities Policy, Elsevier, vol. 33(C), pages 23-33.
    4. Egging, Rudolf G. & Gabriel, Steven A., 2006. "Examining market power in the European natural gas market," Energy Policy, Elsevier, vol. 34(17), pages 2762-2778, November.
    5. Orlov, Anton, 2015. "An assessment of optimal gas pricing in Russia: A CGE approach," Energy Economics, Elsevier, vol. 49(C), pages 492-506.
    6. Marina Tsygankova, 2007. "The Export of Russian Gas to Europe: Breaking Up the Monopoly of Gazprom," Energy and Environmental Modeling 2007 24000062, EcoMod.
    7. Pongsakdi, Arkadej & Rangsunvigit, Pramoch & Siemanond, Kitipat & Bagajewicz, Miguel J., 2006. "Financial risk management in the planning of refinery operations," International Journal of Production Economics, Elsevier, vol. 103(1), pages 64-86, September.
    8. Anis Hoayek & Hassan Hamie & Hans Auer, 2020. "Modeling the Price Stability and Predictability of Post Liberalized Gas Markets Using the Theory of Information," Energies, MDPI, vol. 13(11), pages 1-20, June.
    9. Lise, Wietze & Hobbs, Benjamin F., 2008. "Future evolution of the liberalised European gas market: Simulation results with a dynamic model," Energy, Elsevier, vol. 33(7), pages 989-1004.
    10. Olivier Massol & Albert Banal-Estañol, 2014. "Market power across the Channel: Are Continental European gas markets isolated ?," Working Papers hal-02475017, HAL.
    11. Aouam, Tarik & Muthuraman, Kumar & Rardin, Ronal L., 2016. "Robust optimization policy benchmarks and modeling errors in natural gas," European Journal of Operational Research, Elsevier, vol. 250(3), pages 807-815.
    12. Christian Growitsch & Harald Hecking & Timo Panke, 2014. "Supply Disruptions and Regional Price Effects in a Spatial Oligopoly—An Application to the Global Gas Market," Review of International Economics, Wiley Blackwell, vol. 22(5), pages 944-975, November.
    13. Marina Tsygankova, 2007. "When is Mighty Gazprom Good for Russia?," Discussion Papers 526, Statistics Norway, Research Department.
    14. Hassan Hamie & Anis Hoayek & Hans Auer, 2020. "Modeling Post-Liberalized European Gas Market Concentration—A Game Theory Perspective," Forecasting, MDPI, vol. 3(1), pages 1-16, December.
    15. Miguel Vazquez & Michelle Hallack, 2013. "Interaction between gas and electricity market-based trading in the short run," RSCAS Working Papers 2013/42, European University Institute.
    16. Kristine Grimsrud, Knut Einar Rosendahl, Halvor B. Storrøsten, and Marina Tsygankova, 2016. "Short Run Effects of Bleaker Prospects for Oligopolistic Producers of a Non-renewable Resource," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    17. Andreas Chollet & Berit Meinhart & Christian von Hirschhausen & Petra Opitz, 2001. "Options for Transporting Russian Gas to Western Europe: A Game-theoretic Simulation Analysis," Discussion Papers of DIW Berlin 261, DIW Berlin, German Institute for Economic Research.
    18. Gasmi, Farid & Oviedo, Juan Daniel, 2009. "Investment in Transport Infrastructure, and Gas-Gas Competition," TSE Working Papers 09-121, Toulouse School of Economics (TSE).
    19. Tsygankova, Marina, 2010. "When is a break-up of Gazprom good for Russia?," Energy Economics, Elsevier, vol. 32(4), pages 908-917, July.
    20. Ozelkan, Ertunga C. & D'Ambrosio, Alfred & Teng, S. Gary, 2008. "Optimizing liquefied natural gas terminal design for effective supply-chain operations," International Journal of Production Economics, Elsevier, vol. 111(2), pages 529-542, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:243:y:2015:i:2:p:647-657. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.