Natural Gas Transmission Companies Research Articles

Optimal location of gas network maintenance centres: A case study from Poland

The delivery of natural gas to consumers requires significant infrastructure that consists of numerous technical units and other gas transmission assets. The failure of a single component in a gas transmission and distribution network might compromise the reliability of the gas supply system. Thus, the proper location of facilities for employees and contractors performing inspections and maintenance activities is of critical importance for the uninterrupted operation of a natural gas network. In this context, this study addresses the problem of identifying the optimal location of gas network maintenance centres (GNMCs) in a natural gas transmission company which is actively seeking to improve its maintenance and service response times while minimising costs. In an effort to determine the optimal number of GNMCs required to maintain assets in areas covered by the company, a decision-support tool based on a mixed-integer linear programming approach (MILP) is proposed. The tool is applied to the case study of a natural gas transmission company operating in central Poland. The case study is extended to explore four alternative scenarios which illustrate the additional functionalities of the proposed model. The model results indicate that the total system cost of the gas network maintenance infrastructure can be reduced by up to 13% with the operation of only two out of five existing GNMCs and one candidate facility. The results also demonstrate the versatility of the optimisation model since it enables decision-makers to evaluate the effects of changing maintenance strategies.

Estimating alternative technology sets in nonparametric efficiency analysis: restriction tests for panel and clustered data

Nonparametric efficiency analysis has become a widely applied technique to support industrial benchmarking as well as a variety of incentive-based regulation policies. In practice such exercises are often plagued by incomplete knowledge about the correct specifications of inputs and outputs. Simar and Wilson (Commun Stat Simul Comput 30(1):159–184, 2001) and Schubert and Simar (J Prod Anal 36(1):55–69, 2011) propose restriction tests to support such specification decisions for cross-section data. However, the typical oligopolized market structure pertinent to regulation contexts often leads to low numbers of cross-section observations, rendering reliable estimation based on these tests practically unfeasible. This small-sample problem could often be avoided with the use of panel data, which would in any case require an extension of the cross-section restriction tests to handle panel data. In this paper we derive these tests. We prove the consistency of the proposed method and apply it to a sample of US natural gas transmission companies from 2003 through 2007. We find that the total quantity of natural gas delivered and natural gas delivered in peak periods measure essentially the same output. Therefore only one needs to be included. We also show that the length of mains as a measure of transportation service is non-redundant and therefore must be included.

Incentives for methane mitigation and energy‐efficiency improvements in the case of Ukraine's natural gas transmission system

AbstractReducing methane losses is a concern for climate change policy and energy policy. The energy sector is the major source of anthropogenic methane emissions into the atmosphere in Ukraine. Reducing methane emissions and avoiding combustion can be very cost‐effective, but various barriers prevent such energy‐efficiency measures from taking place. To date, few examples of industry‐wide improvements exist. One example of substantial investments into upgrading natural gas transmission system comes from Ukraine's natural gas transmission company, Ukrtransgaz. The company's investments into system upgrades, along with a 34% fall in throughput, resulted in reduction of Ukrtransgaz system's own consumption of natural gas by 68% in 2011 compared to the level in 2005. Evaluating reductions in methane emissions is challenging because of lack of accurate data and gaps in accounting methodologies. At the same time, Ukraine's transmission system has undergone improvements that, at the very least, have contained methane emissions, if not substantially reduced them. In this paper, we describe recent developments in Ukraine's natural gas transmission system and analyze the incentives that forced the sector to pay close attention to its methane losses. Ukraine is one of the most energy‐intensive countries, among the largest natural gas consumers in the world, and a significant emitter of methane. The country is also dependent on imports of natural gas. A combination of several factors has created conditions for successful reductions in methane emissions and combustion. These factors include: an eightfold increase in the price of imported natural gas; comprehensive domestic environmental and energy policies, such as the Laws of Ukraine on Protecting the Natural Environment and on Air Protection; policies aimed at integration with European Union's energy market and accession to the Energy Community Treaty; and the country's participation in international cooperation on environment, such as through the Joint Implementation mechanism and the voluntary Global Methane Initiative. Learning about such case studies can help policymakers and sustainability professionals design better policies elsewhere.

Estimating Alternative Technology Sets in Nonparametric Efficiency Analysis: Restriction Tests for Panel and Clustered Data

Nonparametric efficiency analysis has become a widely applied technique to support industrial benchmarking as well as a variety of incentive- based regulation policies. In practice such exercises are often plagued by incomplete knowledge about the correct specifications of inputs and outputs. Simar and Wilson (2001) and Schubert and Simar (2011) propose restriction tests to support such specification decisions for cross-section data. However, the typical oligopolized market structure pertinent to regulation contexts often leads to low numbers of cross-section observations, rendering reliable estimation based on these tests practically unfeasible. This small-sample problem could often be avoided with the use of panel data, which would in any case require an extension of the cross-section restriction tests to handle panel data. In this paper we derive these tests. We prove the consistency of the proposed method and apply it to a sample of US natural gas transmission companies in 2003 through 2007. We find that the total quantity of gas delivered and gas delivered in peak periods measure essentially the same output. Therefore only one needs to be included. We also show that the length of mains as a measure of transportation service is non-redundant and therefore must be included.

Overcoming Data Limitations in Nonparametric Benchmarking: Applying PCA-DEA to Natural Gas Transmission

This paper provides an empirical demonstration for a practical approach of efficiency evaluation against the background of limited data availability in some regulated industries. Here, traditional DEA may result in a lack of discriminatory power when high numbers of variables but only limited observations are available. We apply PCA-DEA for radial efficiency measurement to US natural gas transmission companies in 2007. This allows us to reduce dimensions of the optimization problem while maintaining most of the variation in the original data. Our results suggest that the PCA-DEA methodology reduces the probability of over-estimation of the individual firm-specific performance. It also allows for a large number of original variables without substantially reducing the discriminatory power of the model.

Overcoming Data Limitations in Nonparametric Benchmarking: Applying PCA-DEA to Natural Gas Transmission

We empirically demonstrate a practical approach of efficiency evaluation with limited data availability in some regulated industries. We apply PCA-DEA for radial efficiency measurement to U.S. natural gas transmission companies in 2007. PCA-DEA reduces dimensions of the optimization problem while maintaining most of the variation in the original data. Our results suggest that the methodology reduces the probability of over-estimation of individual firm-specific performance.

Corporate restructuring of the global energy industry: an overview of events and issues

Before 1980, outside of the world's few major integrated oil companies, only a handful of energy companies could be considered multinational. In 1999, in addition to the scores of petroleum companies that can be classified as multinational, the scope of many electricity companies and natural gas transmission companies has become increasingly global. Through mergers, acquisitions, joint ventures, and strategic alliances, many of the world's energy companies have also become more integrated – and most recently, much larger. Natural gas pipeline companies have become electricity companies; regional domestic electric utilities have become multinational electricity companies; electricity distribution and transmission companies have become generation companies; generation companies have become distribution and transmission companies; and big oil companies have become even bigger oil companies. What have been the driving forces behind these transformations? It is in part due to a number of policy and market related developments such as deregulation, rising environmental concerns, privatisation, technological advances, and an evolution in global finance.

Parametric and Nonparametric Approaches to Benchmarking the Regulated Firm

Rewarding regulated firms based on their relative performance requires benchmarks that reflect how performance is affected by regulation. This paper demonstrates how parametric and nonparametric efficiency measures can be employed to produce benchmarks that account for the effects of regulation. We apply measurement techniques to an eleven-year panel of 20 U.S. interstate natural gas transmission companies and use our benchmarking measures to distinguish firms that perform well owing to a superior management of technology from firms that perform well owing to the effective management of the regulatory mechanism.

Propagation d'ondes le long de réseaux de tuyauteries

In order to understand the shocks mechanisms propagation, the CERT/ONERA/DERMES is interested in structural waves propagation in piping system network. The free vibration of a cylindrical thin-walled shell can be described by the Donnell-Mushtari theory, added to Mugge formulation. The resolution of this equations system leads to a 6 order equation in ω (motion frequency). In this way, we obtain the axial, radial and circumferential propagation modes eigenfrequencies. However, due to the hypothesis of long pipe assumption, only the radial mode is taken into account. The theoretical approach is completed by an experimental study. Thus, the waves propagation along straight pipes and in complex system (in 3-D) including some representative discontinuities of system network (single 45 o bend, single 90 o bend, T-Joint, curved-pipe...) is analyzed. The aim is to quantify the amplitude attenuation of a radial propagation mode of the shell through these kind of discontinuities. The study is carried out in order to realize a numerical simulation software of vibrational waves propagation along piping system network. This study is financed by a natural gas transmission company: Gaz du Sud-Ouest

Telemetry and Process Control Computer Application in Natural Gas Dispatching

This paper describes how a natural gas transmission company improves operating efficiency and further increases its sales by the use of a process control computer, connected on-line to an existing telemetry system. The telemetry and instrumentation which is necessary for the on-line computer was installed as part of an overall automation program. Descriptions of the telemetry and instrumentation are included, together with a description of the computer system. The program and methods used to improve the operating economy by efficient utilization of the pipeline facilities are discussed. The existing on-line computer system has been operational since November, 1965.