IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i22p7672-d1283947.html
   My bibliography  Save this article

Current and Future Role of Natural Gas Supply Chains in the Transition to a Low-Carbon Hydrogen Economy: A Comprehensive Review on Integrated Natural Gas Supply Chain Optimisation Models

Author

Listed:
  • Noor Yusuf

    (College of Science and Engineering, Hamad Bin Khalifa University, Qatar Foundation, Doha 34110, Qatar)

  • Tareq Al-Ansari

    (College of Science and Engineering, Hamad Bin Khalifa University, Qatar Foundation, Doha 34110, Qatar)

Abstract

Natural gas is the most growing fossil fuel due to its environmental advantages. For the economical transportation of natural gas to distant markets, physical (i.e., liquefaction and compression) or chemical (i.e., direct and indirect) monetisation options must be considered to reduce volume and meet the demand of different markets. Planning natural gas supply chains is a complex problem in today’s turbulent markets, especially considering the uncertainties associated with final market demand and competition with emerging renewable and hydrogen energies. This review study evaluates the latest research on mathematical programming (i.e., MILP and MINLP) as a decision-making tool for designing and planning natural gas supply chains under different planning horizons. The first part of this study assesses the status of existing natural gas infrastructures by addressing readily available natural monetisation options, quantitative tools for selecting monetisation options, and single-state and multistate natural gas supply chain optimisation models. The second part investigates hydrogen as a potential energy carrier for integration with natural gas supply chains, carbon capture utilisation, and storage technologies. This integration is foreseen to decarbonise systems, diversify the product portfolio, and fill the gap between current supply chains and the future market need of cleaner energy commodities. Since natural gas markets are turbulent and hydrogen energy has the potential to replace fossil fuels in the future, addressing stochastic conditions and demand uncertainty is vital to hedge against risks through designing a responsive supply chain in the project’s early design stages. Hence, hydrogen supply chain optimisation studies and the latest works on hydrogen–natural gas supply chain optimisation were reviewed under deterministic and stochastic conditions. Only quantitative mathematical models for supply chain optimisation, including linear and nonlinear programming models, were considered in this study to evaluate the effectiveness of each proposed approach.

Suggested Citation

  • Noor Yusuf & Tareq Al-Ansari, 2023. "Current and Future Role of Natural Gas Supply Chains in the Transition to a Low-Carbon Hydrogen Economy: A Comprehensive Review on Integrated Natural Gas Supply Chain Optimisation Models," Energies, MDPI, vol. 16(22), pages 1-33, November.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:22:p:7672-:d:1283947
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/22/7672/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/22/7672/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lu, Weiwei & Su, Meirong & Fath, Brian D. & Zhang, Mingqi & Hao, Yan, 2016. "A systematic method of evaluation of the Chinese natural gas supply security," Applied Energy, Elsevier, vol. 165(C), pages 858-867.
    2. Quarton, Christopher J. & Samsatli, Sheila, 2020. "The value of hydrogen and carbon capture, storage and utilisation in decarbonising energy: Insights from integrated value chain optimisation," Applied Energy, Elsevier, vol. 257(C).
    3. Sharma, Gagan Deep & Verma, Mahesh & Taheri, Babak & Chopra, Ritika & Parihar, Jaya Singh, 2023. "Socio-economic aspects of hydrogen energy: An integrative review," Technological Forecasting and Social Change, Elsevier, vol. 192(C).
    4. Mohamadreza Fazli-Khalaf & Soheyl Khalilpourazari & Mohammad Mohammadi, 2019. "Mixed robust possibilistic flexible chance constraint optimization model for emergency blood supply chain network design," Annals of Operations Research, Springer, vol. 283(1), pages 1079-1109, December.
    5. O'Shea, Richard & Wall, David M. & Kilgallon, Ian & Browne, James D. & Murphy, Jerry D., 2017. "Assessing the total theoretical, and financially viable, resource of biomethane for injection to a natural gas network in a region," Applied Energy, Elsevier, vol. 188(C), pages 237-256.
    6. Saad A. Al-Sobhi & Ali Elkamel & Fatih S. Erenay & Munawar A. Shaik, 2018. "Simulation-Optimization Framework for Synthesis and Design of Natural Gas Downstream Utilization Networks," Energies, MDPI, vol. 11(2), pages 1-19, February.
    7. Ahmadi, Maryam & Manera, Matteo & Sadeghzadeh, Mehdi, 2019. "The investment-uncertainty relationship in the oil and gas industry," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    8. Vladimír Hönig & Petr Prochazka & Michal Obergruber & Luboš Smutka & Viera Kučerová, 2019. "Economic and Technological Analysis of Commercial LNG Production in the EU," Energies, MDPI, vol. 12(8), pages 1-17, April.
    9. Usman, Muhammad R., 2022. "Hydrogen storage methods: Review and current status," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    10. Seo, Seung-Kwon & Yun, Dong-Yeol & Lee, Chul-Jin, 2020. "Design and optimization of a hydrogen supply chain using a centralized storage model," Applied Energy, Elsevier, vol. 262(C).
    11. Samsatli, Sheila & Samsatli, Nouri J., 2018. "A multi-objective MILP model for the design and operation of future integrated multi-vector energy networks capturing detailed spatio-temporal dependencies," Applied Energy, Elsevier, vol. 220(C), pages 893-920.
    12. Cantú, Victor H. & Ponsich, Antonin & Azzaro-Pantel, Catherine & Carrera, Eduardo, 2023. "Capturing spatial, time-wise and technological detail in hydrogen supply chains: A bi-level multi-objective optimization approach," Applied Energy, Elsevier, vol. 344(C).
    13. Baccanelli, Margaret & Langé, Stefano & Rocco, Matteo V. & Pellegrini, Laura A. & Colombo, Emanuela, 2016. "Low temperature techniques for natural gas purification and LNG production: An energy and exergy analysis," Applied Energy, Elsevier, vol. 180(C), pages 546-559.
    14. Alexey Cherepovitsyn & Aleksei Kazanin & Evgeniya Rutenko, 2023. "Strategic Priorities for Green Diversification of Oil and Gas Companies," Energies, MDPI, vol. 16(13), pages 1-17, June.
    15. Olga A. Shvetsova & Elena A. Rodionova & Michael Z. Epstein, 2018. "Evaluation of investment projects under uncertainty: multi-criteria approach using interval data," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 5(4), pages 914-928, June.
    16. Guo, Yingjian & Hawkes, Adam, 2019. "The impact of demand uncertainties and China-US natural gas tariff on global gas trade," Energy, Elsevier, vol. 175(C), pages 205-217.
    17. Burel, Fabio & Taccani, Rodolfo & Zuliani, Nicola, 2013. "Improving sustainability of maritime transport through utilization of Liquefied Natural Gas (LNG) for propulsion," Energy, Elsevier, vol. 57(C), pages 412-420.
    18. Ahmadian Behrooz, Hesam & Boozarjomehry, R. Bozorgmehry, 2017. "Dynamic optimization of natural gas networks under customer demand uncertainties," Energy, Elsevier, vol. 134(C), pages 968-983.
    19. Hwangbo, Soonho & Lee, In-Beum & Han, Jeehoon, 2017. "Mathematical model to optimize design of integrated utility supply network and future global hydrogen supply network under demand uncertainty," Applied Energy, Elsevier, vol. 195(C), pages 257-267.
    20. Wickham, David & Hawkes, Adam & Jalil-Vega, Francisca, 2022. "Hydrogen supply chain optimisation for the transport sector – Focus on hydrogen purity and purification requirements," Applied Energy, Elsevier, vol. 305(C).
    21. Hong, Yanran & Wang, Lu & Ye, Xiaoqing & Zhang, Yaojie, 2022. "Dynamic asymmetric impact of equity market uncertainty on energy markets: A time-varying causality analysis," Renewable Energy, Elsevier, vol. 196(C), pages 535-546.
    22. Hong, Bingyuan & Li, Xiaoping & Song, Shangfei & Chen, Shilin & Zhao, Changlong & Gong, Jing, 2020. "Optimal planning and modular infrastructure dynamic allocation for shale gas production," Applied Energy, Elsevier, vol. 261(C).
    23. Reuß, M. & Grube, T. & Robinius, M. & Preuster, P. & Wasserscheid, P. & Stolten, D., 2017. "Seasonal storage and alternative carriers: A flexible hydrogen supply chain model," Applied Energy, Elsevier, vol. 200(C), pages 290-302.
    24. Seyed Morteza Vaghar Seyedin & Amir Zeidi & Elham Chamanehpour & Mohammad Hassan Fathi Nasri & Einar Vargas-Bello-Pérez, 2022. "Methane Emission: Strategies to Reduce Global Warming in Relation to Animal Husbandry Units with Emphasis on Ruminants," Sustainability, MDPI, vol. 14(24), pages 1-23, December.
    25. Tan, Siah Hong & Barton, Paul I., 2016. "Optimal dynamic allocation of mobile plants to monetize associated or stranded natural gas, part II: Dealing with uncertainty," Energy, Elsevier, vol. 96(C), pages 461-467.
    26. Olmez Turan, Merve & Flamand, Tulay, 2023. "Optimizing investment and transportation decisions for the European natural gas supply chain," Applied Energy, Elsevier, vol. 337(C).
    27. Almansoori, A. & Betancourt-Torcat, A., 2016. "Design of optimization model for a hydrogen supply chain under emission constraints - A case study of Germany," Energy, Elsevier, vol. 111(C), pages 414-429.
    28. Dzikri Firmansyah Hakam & Ayodele O. Asekomeh, 2018. "Gas Monetisation Intricacies: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(2), pages 174-181.
    29. Aakil M. Caunhye & Michel-Alexandre Cardin & Muhammad Rahmat, 2022. "Flexibility and real options analysis in power system generation expansion planning under uncertainty," IISE Transactions, Taylor & Francis Journals, vol. 54(9), pages 832-844, June.
    30. Zhang, Dayong & Shi, Min & Shi, Xunpeng, 2018. "Oil indexation, market fundamentals, and natural gas prices: An investigation of the Asian premium in natural gas trade," Energy Economics, Elsevier, vol. 69(C), pages 33-41.
    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. Zhang, Rui & Cao, Xuewen & Zhang, Xingwang & Yang, Jian & Bian, Jiang, 2024. "Co-benefits of the liquid hydrogen economy and LNG economy: Advances in LNG integrating LH2 production processes," Energy, Elsevier, vol. 301(C).

    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. Pierre, Cayet & Catherine, Azzaro-Pantel & Sylvain, Bourjade & Catherine, Muller-Vibes, 2024. "Beyond the “bottom-up” and “top-down” controversy: A methodological inquiry into hybrid modeling methods for hydrogen supply chains," International Journal of Production Economics, Elsevier, vol. 268(C).
    2. Jiwon Yu & Young Jae Han & Hyewon Yang & Sugil Lee & Gildong Kim & Chulung Lee, 2022. "Promising Technology Analysis and Patent Roadmap Development in the Hydrogen Supply Chain," Sustainability, MDPI, vol. 14(21), pages 1-20, October.
    3. Farajiamiri, Mina & Meyer, Jörn-Christian & Walther, Grit, 2023. "Multi-objective optimization of renewable fuel supply chains regarding cost, land use, and water use," Applied Energy, Elsevier, vol. 349(C).
    4. Sungmi Bae & Eunhan Lee & Jinil Han, 2020. "Multi-Period Planning of Hydrogen Supply Network for Refuelling Hydrogen Fuel Cell Vehicles in Urban Areas," Sustainability, MDPI, vol. 12(10), pages 1-23, May.
    5. Li, Lei & Manier, Hervé & Manier, Marie-Ange, 2019. "Hydrogen supply chain network design: An optimization-oriented review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 103(C), pages 342-360.
    6. Quarton, Christopher J. & Samsatli, Sheila, 2020. "Should we inject hydrogen into gas grids? Practicalities and whole-system value chain optimisation," Applied Energy, Elsevier, vol. 275(C).
    7. Seo, Seung-Kwon & Yun, Dong-Yeol & Lee, Chul-Jin, 2020. "Design and optimization of a hydrogen supply chain using a centralized storage model," Applied Energy, Elsevier, vol. 262(C).
    8. Mingjing Guo & Yan Bu & Jinhua Cheng & Ziyu Jiang, 2018. "Natural Gas Security in China: A Simulation of Evolutionary Trajectory and Obstacle Degree Analysis," Sustainability, MDPI, vol. 11(1), pages 1-18, December.
    9. Damien Guilbert & Gianpaolo Vitale, 2021. "Hydrogen as a Clean and Sustainable Energy Vector for Global Transition from Fossil-Based to Zero-Carbon," Clean Technol., MDPI, vol. 3(4), pages 1-29, December.
    10. Reuß, Markus & Grube, Thomas & Robinius, Martin & Stolten, Detlef, 2019. "A hydrogen supply chain with spatial resolution: Comparative analysis of infrastructure technologies in Germany," Applied Energy, Elsevier, vol. 247(C), pages 438-453.
    11. Yoon, Ha-Jun & Seo, Seung-Kwon & Lee, Chul-Jin, 2022. "Multi-period optimization of hydrogen supply chain utilizing natural gas pipelines and byproduct hydrogen," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    12. Obara, Shin'ya & Hamanaka, Ryo & El-Sayed, Abeer Galal, 2019. "Design methods for microgrids to address seasonal energy availability – A case study of proposed Showa Antarctic Station retrofits," Applied Energy, Elsevier, vol. 236(C), pages 711-727.
    13. Palma, Alessia & Paltrinieri, Andrea & Goodell, John W. & Oriani, Marco Ercole, 2024. "The black box of natural gas market: Past, present, and future," International Review of Financial Analysis, Elsevier, vol. 94(C).
    14. Gong, Chengzhu & Gong, Nianjiao & Qi, Rui & Yu, Shiwei, 2020. "Assessment of natural gas supply security in Asia Pacific: Composite indicators with compromise Benefit-of-the-Doubt weights," Resources Policy, Elsevier, vol. 67(C).
    15. Fanyue Qian & Weijun Gao & Dan Yu & Yongwen Yang & Yingjun Ruan, 2022. "An Analysis of the Potential of Hydrogen Energy Technology on Demand Side Based on a Carbon Tax: A Case Study in Japan," Energies, MDPI, vol. 16(1), pages 1-23, December.
    16. Hong, Bingyuan & Cui, Xuemeng & Peng, Donghua & Zhou, Mengxi & He, Zhouying & Yao, Hanze & Xu, Yupeng & Gong, Jing & Zhang, Hongyu & Li, Xiaoping, 2024. "Distributed or centralized? Long-term dynamic allocation and maintenance planning of modular equipment to produce multi-product natural gas based on life cycle thinking," Energy, Elsevier, vol. 288(C).
    17. Samsatli, Sheila & Samsatli, Nouri J., 2019. "The role of renewable hydrogen and inter-seasonal storage in decarbonising heat – Comprehensive optimisation of future renewable energy value chains," Applied Energy, Elsevier, vol. 233, pages 854-893.
    18. Hong, Bingyuan & Du, Zhaonan & Qiao, Dan & Liu, Daiwei & Li, Yu & Sun, Xiaoqing & Gong, Jing & Zhang, Hongyu & Li, Xiaoping, 2024. "Sustainable supply chain of distributed multi-product gas fields based on skid-mounted equipment to dynamically respond to upstream and market fluctuations," Energy, Elsevier, vol. 292(C).
    19. Ganter, Alissa & Gabrielli, Paolo & Sansavini, Giovanni, 2024. "Near-term infrastructure rollout and investment strategies for net-zero hydrogen supply chains," Renewable and Sustainable Energy Reviews, Elsevier, vol. 194(C).
    20. Karbassi, Veis & Trotter, Philipp A. & Walther, Grit, 2023. "Diversifying the African energy system: Economic versus equitable allocation of renewable electricity and e-fuel production," Applied Energy, Elsevier, vol. 350(C).

    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:gam:jeners:v:16:y:2023:i:22:p:7672-:d:1283947. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.