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

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

Category
Part of a book/report
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.
Client
  • Norges forskningsråd / 209697
Language
English
Author(s)
  • Hellemo Lars
  • Midthun Kjetil Trovik
  • Tomasgard Asgeir
  • Werner Adrian
Affiliation
  • Norwegian University of Science and Technology
  • SINTEF Industry / Sustainable Energy Technology
Year
2013
Published in
World Scientific Series in Finance
ISSN
2010-1082
Publisher
World Scientific
Book
Stochastic Programming : Applications in Finance, Energy, Planning and Logistics
Booklet
4
ISBN
978-9814407502
Page(s)
259 - 288