Assessing benefits in the flexibility of refined oil logistics from pipeline network integration reform: A case from South China

Abstract

• Propose a framework for flexibility quantification of oil logistics flexibility. • The framework based on MILP model contains both quantitative and qualitative parts. • Build a calculation method for the flexibility indicator of refined oil logistics. • Quantify the impact of the reform on logistics flexibility in South China. The pipeline network integration reform enables unified management of pipelines from different entities. For refined oil logistics, this paper proposes a framework based on the MILP optimization model to quantify its flexibility. Considering the uncertainty, three disturbances occur in the logistics concurrently, and 10,000 simulations are performed to obtain the turnover cost. The ratio of pipeline transportation cost to the calculated average turnover cost is defined as the flexibility indicator. Taking China's largest refined oil pipeline network as an example, the results show that the flexibility rises 8.9% after the reform. The paper also quantifies the impact of the reform on logistics flexibility in South China, which is embodied in achieving lower freights and GHG emissions, lower impact by fluctuations, higher pipeline utilization, more efficient oil product turnover, and the avoiding of depot shortages when facing logistical disturbances. The underlying reasons for the results and 3E analysis are analyzed.