Market-driven operational optimization of industrial gas supply chains

This paper deals with the operational optimization of industrial gas supply chains. Industrial gas networks differ from other applications and require a rather special and shrewd approach to modeling and optimization issues. Currently in industrial gas plants: (i) the raw material is free; (ii) binding contracts and clauses place tight limits on supplies, production and distribution; (iii) electric energy cost fluctuations wield a greater influence over overall production than in other industrial areas; (iv) market demand is subject to multifaceted fluctuations and uncertainties; (v) long-term market demand is usually regulated by take-or-pay contracts; (vi) main users are on-site or connected via pipeline; and (vii) cryogenic storage constitutes a significant expense and encourages companies to veer toward just-in-time production. This paper also provides very general guidelines for dealing with the aforementioned peculiarities, and compares plant-wide and enterprise-wide optimizations of industrial gas networks. An existing network is adopted as industrial case study. (C) 2013 Elsevier Ltd. All rights reserved.