IDEAS home Printed from https://ideas.repec.org/h/wsi/wschap/9789814407519_0010.html
   My bibliography  Save this book chapter

Multi-Stage Stochastic Programming for Natural Gas Infrastructure Design with a Production Perspective

In: Stochastic Programming Applications in Finance, Energy, Planning and Logistics

Author

Listed:
  • Lars Hellemo

    (Department for Industrial Economics and Technology Management, Norwegian University of Science and Technology, Alfred Getz veg 3, NO–7491 Trondheim, Norway)

  • Kjetil Midthun

    (Department for Applied Economics and Operations Research, SINTEF Technology and Society, NO–7465 Trondheim, Norway)

  • Asgeir Tomasgard

    (Department for Industrial Economics and Technology Management, Norwegian University of Science and Technology, Alfred Getz veg 3, NO–7491 Trondheim, Norway)

  • Adrian Werner

    (Department for Applied Economics and Operations Research, SINTEF Technology and Society, NO–7465 Trondheim, Norway)

Abstract

We present a multi-stage stochastic model that analyzes investments in natural gas fields and infrastructure. New projects are evaluated together with existing infrastructure and planned expansions. Several uncertain factors both upstream and downstream such as reservoir volumes, the composition of the gas in new reservoirs, market demand and price levels can influence the optimal decisions. The model focuses also on the impact of the sequencing of field developments and new infrastructure on the expected security of supply. In order to analyze all these aspects in one model, we propose a novel approach to scenario trees, combining long-term and short-term uncertainty. Dimensionality and solution times of realistic investment cases from the Norwegian Continental Shelf are discussed.

Suggested Citation

  • 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..
    • Handle: RePEc:wsi:wschap:9789814407519_0010
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/pdf/10.1142/9789814407519_0010
    Download Restriction: Ebook Access is available upon purchase.
    File URL: https://www.worldscientific.com/doi/abs/10.1142/9789814407519_0010
    Download Restriction: Ebook Access is available upon purchase.
    ---><---

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

    Citations

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


    Cited by:

    1. 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.
    2. Bordin, Chiara & Mishra, Sambeet & Palu, Ivo, 2021. "A multihorizon approach for the reliability oriented network restructuring problem, considering learning effects, construction time, and cables maintenance costs," Renewable Energy, Elsevier, vol. 168(C), pages 878-895.
    3. Seljom, Pernille & Tomasgard, Asgeir, 2015. "Short-term uncertainty in long-term energy system models — A case study of wind power in Denmark," Energy Economics, Elsevier, vol. 49(C), pages 157-167.
    4. Sergei Schreider & Jonathan Plummer & Daniel McInnes & Boris Miller, 2015. "Sensitivity analysis of gas supply optimization models," Annals of Operations Research, Springer, vol. 226(1), pages 565-588, March.
    5. Vitor Miguel Ribeiro & Gustavo Soutinho & Isabel Soares, 2023. "Natural Gas Prices in the Framework of European Union’s Energy Transition: Assessing Evolution and Drivers," Energies, MDPI, vol. 16(4), pages 1-46, 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:wsi:wschap:9789814407519_0010. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscientific.com/page/worldscibooks .

    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.