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Optimisation of natural gas supply chain considering pipeline transportation cost reformation in China

Author

Listed:
  • Jun Zhou
  • Daixin Zhang
  • Guangchuan Liang
  • Guancheng Wu
  • Nengjia He

Abstract

Natural gas plays an important role in the transition to renewable energy. The China national pipeline network company was established in 2019 and the Natural Gas Supply Chain (NGSC) is now in the transition stage. In addition, the reform of the Pipeline Transportation Cost Mode (PTCM) would have a greater impact on the natural gas market and benefit the marketers. This paper proposed an NGSC linear programming model to maximise the marketers' profit under two PTCM during the supply period. The CPLEX solver is used to find out the optimal gas distribution. Then, a long-distance pipeline in China is selected to verify the accuracy of this model. The price of different gas types, the gas volume of different market users, as well as the marketer's gas distribution are studied. And finally comes the sensitivity analysis of peak shaving gas price and extra gas price and greenhouse gas emission costs. The results show that the reform of the PTCM has a great impact on the profit of the marketers and the lucrative boundary is achieved. By fully understanding the profit map, thereby guiding the management of the marketer.

Suggested Citation

  • Jun Zhou & Daixin Zhang & Guangchuan Liang & Guancheng Wu & Nengjia He, 2023. "Optimisation of natural gas supply chain considering pipeline transportation cost reformation in China," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 45(2), pages 182-206.
    • Handle: RePEc:ids:ijgeni:v:45:y:2023:i:2:p:182-206
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