Optimization of purchase, storage and transmission contracts for natural gas utilities

Natural gas utilities supply about a quarter of the energy needs of the United States. From wellhead to consumer, operations are governed by an astounding diversity of purchase, transport and storage contract agreements which prepare a complex physical distribution system to meet future demands no more predictable than next year’s weather. The authors present a decision support system based on a highly detailed optimization model used by utilities to plan operations which minimize cost while satisfying regulatory agencies. Applications at Southwest Gas Corporation are presented along with a case study at Questar Pipeline Corporation.