 Optimal dynamic allocation of mobile plants to monetize associated or stranded natural gas, part I: Bakken shale play case studySiah Hong Tan and Paul I. Barton Energy, 2015, vol. 93, issue P2, 1581-1594 Abstract: Associated or stranded natural gas presents a challenge to monetize due to its low volume and lack of supporting infrastructure. Recent proposals for deploying mobile, modular plants, such as those which perform GTL (gas-to-liquids) conversion or produce LNG (liquefied natural gas) on a small scale, have been identified as possible attractive routes to gas monetization. However, such technologies are yet unproven in the marketplace. To assess their potential, we propose a multi-period optimization framework which determines the optimal dynamic allocation and operating decisions for a decision maker who utilizes mobile plants to monetize associated or stranded gas. We then apply this framework to a case study of the Bakken shale play. Our framework is implemented to determine the optimal NPV (net present value) which would be realized over a twenty-year time frame. Sensitivity studies on the technology costs and conversion inputs conclude that the profitability and viability of mobile technologies remain valid for a wide range of possible inputs. Keywords: Natural gas monetization; Associated gas; Stranded gas; Mobile modular plants; Mixed-integer linear programming; Bakken shale play (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:93:y:2015:i:p2:p:1581-1594 DOI: 10.1016/j.energy.2015.10.043 Access Statistics for this article Energy is currently edited by Henrik Lund and Mark J. Kaiser More articles in Energy from Elsevier |
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