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Optimizing the Norwegian Natural Gas Production and Transport

Author

Listed:
  • Frode Rømo

    (Department of Operations Research and Applied Economics, SINTEF Technology and Society, 7465 Trondheim, Norway)

  • Asgeir Tomasgard

    (Department of Industrial Economics and Technology Management (IØT), Norwegian University of Science and Technology (NTNU), 7491 Trondheim, Norway, and Department of Operations Research and Applied Economics, SINTEF Technology and Society, 7465 Trondheim, Norway)

  • Lars Hellemo

    (Department of Industrial Economics and Technology Management (IØT), Norwegian University of Science and Technology (NTNU), 7491 Trondheim, Norway, and Department of Operations Research and Applied Economics, SINTEF Technology and Society, 7465 Trondheim, Norway)

  • Marte Fodstad

    (Department of Industrial Economics and Technology Management (IØT), Norwegian University of Science and Technology (NTNU), 7491 Trondheim, Norway, and Department of Operations Research and Applied Economics, SINTEF Technology and Society, 7465 Trondheim, Norway)

  • Bjørgulf Haukelidsæter Eidesen

    (StatoilHydro, 4035 Stavanger, Norway)

  • Birger Pedersen

    (Gassco, 5501 Haugesund, Norway)

Abstract

The network for transport of natural gas on the Norwegian Continental Shelf, with 7,800 km of subsea pipelines, is the world's largest offshore pipeline network. The gas flowing through this network represents approximately 15 percent of European consumption, and the system has a capacity of 120 billion standard cubic meters (bcm) a year. In a network of interconnected pipelines, system effects are prevalent, and the network must be analyzed as a whole to determine the optimal operation. SINTEF has developed a decision support tool, GassOpt, which is based on a mixed-integer program, to optimize the network configuration and routing for the main Norwegian shipper of natural gas, StatoilHydro, and the independent network operator, Gassco. GassOpt allows users to graphically model their network and run optimizations to find the best solutions quickly. StatoilHydro and Gassco use it to evaluate the current network and possible network extensions. Both companies use operations research (OR) methods in the departments that are responsible for transport planning and security of supply. Several new OR projects have grown out from this cooperation. StatoilHydro estimates that its accumulated savings related to the use of GassOpt were approximately US$2 billion in the period 1995--2008.

Suggested Citation

  • Frode Rømo & Asgeir Tomasgard & Lars Hellemo & Marte Fodstad & Bjørgulf Haukelidsæter Eidesen & Birger Pedersen, 2009. "Optimizing the Norwegian Natural Gas Production and Transport," Interfaces, INFORMS, vol. 39(1), pages 46-56, February.
    • Handle: RePEc:inm:orinte:v:39:y:2009:i:1:p:46-56
    DOI: 10.1287/inte.1080.0414
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    References listed on IDEAS

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    1. Kjetil T. Midthun & Mette Bjorndal & Asgeir Tomasgard, 2009. "Modeling Optimal Economic Dispatch and System Effects in Natural Gas Networks," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 155-180.
    2. Ulstein, Nina Linn & Nygreen, Bjorn & Sagli, Jan Richard, 2007. "Tactical planning of offshore petroleum production," European Journal of Operational Research, Elsevier, vol. 176(1), pages 550-564, January.
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    1. Mula, Josefa & Peidro, David & Díaz-Madroñero, Manuel & Vicens, Eduardo, 2010. "Mathematical programming models for supply chain production and transport planning," European Journal of Operational Research, Elsevier, vol. 204(3), pages 377-390, August.
    2. Tianhu Deng & Yong Liang & Shixuan Zhang & Jingze Ren & Shuyi Zheng, 2019. "A Dynamic Programming Approach to Power Consumption Minimization in Gunbarrel Natural Gas Networks with Nonidentical Compressor Units," INFORMS Journal on Computing, INFORMS, vol. 31(3), pages 593-611, July.
    3. Mohammed Alfaki & Dag Haugland, 2014. "A cost minimization heuristic for the pooling problem," Annals of Operations Research, Springer, vol. 222(1), pages 73-87, November.
    4. Ordoudis, Christos & Delikaraoglou, Stefanos & Kazempour, Jalal & Pinson, Pierre, 2020. "Market-based coordination of integrated electricity and natural gas systems under uncertain supply," European Journal of Operational Research, Elsevier, vol. 287(3), pages 1105-1119.
    5. Grimm, Veronika & Grübel, Julia & Schewe, Lars & Schmidt, Martin & Zöttl, Gregor, 2019. "Nonconvex equilibrium models for gas market analysis: Failure of standard techniques and alternative modeling approaches," European Journal of Operational Research, Elsevier, vol. 273(3), pages 1097-1108.
    6. Veronika Grimm & Lars Schewe & Martin Schmidt & Gregor Zöttl, 2019. "A multilevel model of the European entry-exit gas market," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 89(2), pages 223-255, April.
    7. Aurelija Burinskienė, 2021. "Designing a Multi-Stage Transport System Serving e-Commerce Activity," Sustainability, MDPI, vol. 13(11), pages 1-19, May.
    8. Ordoudis, Christos & Pinson, Pierre & Morales, Juan M., 2019. "An Integrated Market for Electricity and Natural Gas Systems with Stochastic Power Producers," European Journal of Operational Research, Elsevier, vol. 272(2), pages 642-654.
    9. Jingkuan Han & Yingjun Xu & Dingzhi Liu & Yanfang Zhao & Zhongde Zhao & Shuhui Zhou & Tianhu Deng & Mengying Xue & Junchi Ye & Zuo-Jun Max Shen, 2019. "Operations Research Enables Better Planning of Natural Gas Pipelines," Interfaces, INFORMS, vol. 49(1), pages 23-39, January.
    10. Mengying Xue & Tianhu Deng & Dingzhi Liu, 2016. "CNPC Uses an Iterative Two-Stage Convex Relaxation Approach to Operate Natural Gas Pipelines," Interfaces, INFORMS, vol. 46(6), pages 533-546, December.
    11. Böttger, T. & Grimm, V. & Kleinert, T. & Schmidt, M., 2022. "The cost of decoupling trade and transport in the European entry-exit gas market with linear physics modeling," European Journal of Operational Research, Elsevier, vol. 297(3), pages 1095-1111.
    12. Giovanni Pantuso & Kjetil Fagerholt & Stein W. Wallace, 2015. "Solving Hierarchical Stochastic Programs: Application to the Maritime Fleet Renewal Problem," INFORMS Journal on Computing, INFORMS, vol. 27(1), pages 89-102, February.
    13. Dimitri J. Papageorgiou & Alejandro Toriello & George L. Nemhauser & Martin W. P. Savelsbergh, 2012. "Fixed-Charge Transportation with Product Blending," Transportation Science, INFORMS, vol. 46(2), pages 281-295, May.
    14. Shaton, Katerina, 2015. "Value of Flexibility in Gas Pipeline Investments," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Innovations and Strategies for Logistics and Supply Chains: Technologies, Business Models and Risk Management. Proceedings of the Hamburg Internationa, volume 20, pages 333-357, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.

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