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Optimal Allocation of Gas Resources to Different Consumption Sectors Using Multi-Objective Goal Programming

Author

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  • Ieva Meidute-Kavaliauskiene

    (Department of Business Technologies and Entrepreneurship, Vilnius Gediminas Technical University, Saulėtekio al. 11, 10223 Vilnius, Lithuania)

  • Vida Davidaviciene

    (Department of Business Technologies and Entrepreneurship, Vilnius Gediminas Technical University, Saulėtekio al. 11, 10223 Vilnius, Lithuania)

  • Shahryar Ghorbani

    (Department of Production Management, University of Sakarya, 54050 Sakarya, Turkey)

  • Iman Ghasemian Sahebi

    (Department of Industrial Management, University of Tehran, Tehran 1417466191, Iran)

Abstract

Natural gas is a main source of energy in Iran, and optimal allocation to different sectors is crucial, based on realities, geopolitical considerations, and national security concerns. In this paper, a multi-objective goal programming model is developed to study the optimal allocation of this resource to various consumption sectors, including household business, industry, petrochemical industry, power plants, injection to oil fields, and export from Iran for the horizon of 2025. In this research, the energy security index is prioritized over other indicators. Two objective functions are considered: the first is maximizing the energy security index (minimizing the cost of energy security), and the second is minimizing the relative weight of different consumption sectors. The goal share of the various gas sectors, the amount of consumption of the various consumption sectors, and the allocatable and predicted amount for each year is calculated. Household business, power plants, petrochemical industries, industry, and export aid injection to oil fields are the most consuming sectors in 2025, respectively. Also, based on cost minimization, power plants, petrochemical industries, and industries in general are the more consuming sectors, respectively.

Suggested Citation

  • Ieva Meidute-Kavaliauskiene & Vida Davidaviciene & Shahryar Ghorbani & Iman Ghasemian Sahebi, 2021. "Optimal Allocation of Gas Resources to Different Consumption Sectors Using Multi-Objective Goal Programming," Sustainability, MDPI, vol. 13(10), pages 1-19, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:10:p:5663-:d:557223
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