Gas Transportation Planning System in the Department of Economy of Gazprom Victor Dochin Deputy head of the Department, Head of gas balance section
Gazprom! The company is the world's largest gas company, accounting for 94% of Russia's gas production (23% of the world output).! The company produces about 8% of the Russia's GDP, contributing 25% of all tax revenues to the federal budget.! More than half-a-million Russians and over 100,000 foreigners are shareholders.! About 300,000 people work in the Company's enterprises.! The company has more than 40 subsidiaries, covering the entire gas operations cycle from producing its own equipment, geological prospecting and drilling, to consumer deliveries.! Apart from the extraction of gas at prospected fields, the company also develops new fields and constructs trans-continental gas pipelines, as well as producing unique equipment for their own needs.
Industry! Three segments of the natural gas industry are involved in delivering natural gas from the wellhead to the consumer: " Production companies explore, drill and extract natural gas from the ground. " Transmission companies (gas transport enterprises) operate the pipelines that link gas fields to major consuming areas. " Distribution companies are the local utilities that deliver natural gas to the customer.
Some figures! The gas for home consumption and export is mainly being transported through three main corridors! Total length of the the pipelines is 149900 km! 3677 gas-distribution stations! 256 compressor stations of total capacity 43 mln kilowatt! Average distance of transportation is " 2400 km for home consumption " 3400 km for export
Some figures of 2002 annual report! Gas production 521,9 billion cbm! Total volume of gas transported 637,1 billion cbm! Home consumption 283,5 billion cbm! Export to Western Europe 128,6 billion cbm! Export to CIS and Baltic States 42,3 billion cbm! Independent suppliers transported 13,1% of total transported gas
Business problem! Gas balance is the distribution of gas owned by different companies, comprising differing types of gas, throughout the company s pipeline.! Creating the gas balances required too much time and if data changed, the update process took too long to correct reports.! In addition, there were inaccuracies due to the sizeable effort required to manually correct data in Excel spreadsheets.
The Planning Process in Gazprom The department of economy Industrial planning Economical planning The department of finance Financial planning
The Industrial Planning Planning of gas conversion Planning of gas production Planning of gas transportation To the economical planning Analysis and control of the industrial measures
Planning of Gas Transportation! The large amount of various sources of information about gas intake and consumption! The complicated diagram of gas pipelines! The need to add new customers, owners, contracts resulting in recalculating the balance! The need of optimal transportation! The need of automatic reporting
Gas transportation data model! Gas production from " subsidiary company enterprises " independent gas providers.! Extraction and pumping volume data, to and from underground gas storage tanks inside and outside Russian Federation territory! Delivery to gas plants and gas conversion volumes! Τransport losses! Gas consumers! Export and import volume! Transit to countries outside of the Russian Federation through countries! Gas pipeline transit data to other regions of Russia through other countries! Transactions are contracted when one owner sells gas to another
Planning subjects! 20 Gas-transport subsidiaries: " Transported gas volume is determined by pipeline length. Pipe diameter influences the volume of gas being transported in unit time.! 30 Gas Owners: " Company subsidiary enterprises: # gas for export # gas for domestic consumption. " Independent gas suppliers.! 40 independent gas producers and resellers! 4 Types of gas: " natural " gas from a conversion process
The Target Settings! Gas balance is the distribution of gas owned by different companies and differing gas types, throughout the company s pipeline system where: " Gas intake and supply values are balanced within each gas transport enterprise. " Gas flow remains within specified parameters. " Minimum gas transportation costs are maintained throughout the company. (These costs are defined as sums of gas transportation costs for single pipeline segments. Gas transportation cost within a pipeline is the product of its length and volume of gas transported).
Data Representation Calculation results include:! Gas balance reports for gas transport of the 20 Gas-transport subsidiaries.! The company s owner balances: " for domestic consumption " for export.! Summary balance, with information concerning all gas owners.
Reports generation! A notable problem is that even the smallest corrections of input data typically cause large changes in the gas balance and reports. So it is desirable that reports be constructed automatically using standardized, defined rules.! A special interface to define the rules to construct the reports was invented! More than 80 pages of reports are constructed automatically
The Mathematical Base Line Concept! The SAS team viewed constructing gas balances from the mathematical point of view, describing them as a series of linear programming problems.
Benefits! The Gas Transportation Planning System reduces planning process time and improves accuracy.! It significantly reduces the time to implement planning corrections because it eliminates the need to manually calculate the gas balance. The user simply makes an update and the system automatically reconstructs the balance and produces the reports.! The system finds the optimal gas distribution! Generated reports can now be exported to Excel and Oracle, and distributed to other sections in the economics department for additional analysis and utilization.
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