Optimization Models for the Natural Gas Value Chain

In this paper we give an inroduction to modelling the natural gas value chain including production, transportation, processing, contracts, and markets. The presentation gives insight in the complexity of planning in the natural gas supply chain and how optimization can help decision makers in a natural gas company coordinate the different activities. We present an integrated view from the perspective of an upstream company. The paper starts with describing how to model natural gas transportation and storage, and at the end we present a stochastic portfolio optimization model for the natural gas value chain in a liberalized market.