A Mathematical Programming Model for Allocation of Natural Gas

Published Online:https://doi.org/10.1287/opre.27.5.857

This paper presents a methodology for the allocation of natural gas. The model consists of several objective functions, a set of linear constraints, and a set of nonlinear constraints. The objective functions represent allocation in various categories and can be optimized sequentially. The linear constraints represent the conservation of flow equations for the pipeline network and various accounting relationships. The nonlinear constraints represent the momentum balance necessary for each pipe segment, compressor, or valve. The nonlinear constraints are linearized in a method similar to the method of approximate programming (MAP). A matrix generator is used to create the necessary files for the program execution. We have solved example problems with over 250 linear constraints, 240 nonlinear constraints, and 800 structural columns.

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