Optimization techniques for the Brazilian natural gas network planning problem
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This work reports on modeling and numerical experience in solving the long-term design and operation planning problem of the Brazilian natural gas network. The considered planning problem involves a large amount of money to be invested in production, imports, shipping and delivery of natural gas for several uses in Brazil. In order to account for uncertainties related to the gas demand, mainly due to the use of gas for power production, we model the network planning problem by adopting a two-stage stochastic linear programming approach. We calculate the value of incorporating stochasticity into the problem and assess its numerical tractability in a real-life case by applying optimal scenario reduction techniques and a decomposition strategy based on bundle methods.
KeywordsStochastic programming OR in energy Natural gas Large scale optimization
Research done during a postdoctoral visit of the third author at Instituto Nacional de Matemática Pura e Aplicada-IMPA. The authors are grateful to the reviewers for constructive suggestions that improved the original version of this article.
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