Design a Model for Natural Gas Value Chain with Creative Industry Cluster with Market Viewpoint

Abstract

Abstract Oil and gas value chain is included exploration (seismic survey, exploratory wells, logging, and data interpretation), extraction (drilling wells (productive / dry)), production (well completion and treatment and processing), transportation (pipelines, LNG carriers, CNG carriers), storage (reservoirs, aquifers, salt caverns), distribution (distribution through local distribution companies to end users), and marketing (physical and financial trading and retailing). At this paper, a model was developed for value chain of natural gas. This model based on market viewpoint for creative industry cluster after distribution stage. It was included two groups, one of them is direct consumption as a fuel (e.g. CNG, GTL, LNG, DME, NG (city gas), and power gas) and the other one is indirect consumptions such as methane (ammonia and methanol clusters), ethane (ethylene cluster), propane (propylene cluster), butane (butane and butadiene clusters), sulfur, and condensed (naphtha (benzene and toluene clusters)). Introduction A business or industry cluster, as popularized by Michael Porter can take multiple forms depending on the depth and complexity, but majority clusters include: companies of a ready product or service of one industry or aligned industries, suppliers, financial institutions3. Such clusters affect competition among businesses in three ways: by increasing productivity of the companies in the cluster, by driving innovation in the field and by stimulating businesses in the field4. A cluster thus is a grouping of institutions/firms in a geographic proximity that leads to positive impact on the economy of the cluster and their growth. [1] During the last decades, the underlying concept of value chain was subject to different influences and objectives. The origin of value chain analysis is discussed from two distinct traditions: the French 'filière concept' and Wallerstein's concept of a commodity chain. From both, a couple of derivatives have emerged. Well known is Porter's concept of the value chain, Gereffi's global commodity chain, and Humphrey's world economic triangle, whereas the last two were joined to the concept of the global value chain. [2] Industrial Clusters Clusters are groups of inter-related industries that drive wealth creation in a region, primarily through export of goods and services. The use of clusters as a descriptive tool for regional economic relationships provides a richer, more meaningful representation of local industry drivers and regional dynamics than do traditional methods. An industry cluster is different from the classic definition of industry sectors because it represents the entire value chain of a broadly defined industry from suppliers to end products, including supporting services and specialized infrastructure. Cluster industries are geographically concentrated and inter-connected by the flow of goods and services, which is stronger than the flow linking them to the rest of the economy. [3]