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arxiv 2012.11755 v1 pith:L4HCZRXG submitted 2020-12-21 math.OC

Optimal Economic Operation of Liquid Petroleum Products Pipeline Systems

classification math.OC
keywords economicoperatingpetroleumpipelinesystemscostscrudedeveloped
verification ladder T0 review T1 audit T2 compute T3 formal T4 reserved
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The majority of overland transport needs for crude petroleum and refined petroleum products are met using pipelines. Numerous studies have developed optimization methods for design of these systems in order to minimize construction costs while meeting capacity requirements. Here, we formulate problems to optimize the operations of existing single liquid commodity pipeline systems subject to physical flow and pump engineering constraints. The objectives are to maximize the economic value created for users of the system and to minimize operating costs. We present a general computational method for this class of continuous, non-convex nonlinear programs, and examine the use of pump operating settings and flow allocations as decision variables. The approach is applied to compute optimal operating regimes and perform engineering economic sensitivity analyses for a case study of a crude oil pipeline developed using publicly available data.

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