(496f) Multicriteria Supply Chain Planning in Oil & Gas Industry: Energy and Environmental Considerations

Ordoñez S., I. - Presenter, Instituto Colombiano del Petroleo (ICP)
Franco C., D. - Presenter, Instituto Colombiano del Petroleo (ICP)
Montagut R., S. - Presenter, Instituto Colombiano del Petroleo (ICP)
Uribe R., A. - Presenter, Instituto Colombiano del Petroleo (ICP)
Jimenez B., C. - Presenter, Instituto Colombiano del Petroleo (ICP)

Conventional planning strategies include only economical criteria to take decisions which do not guarantee a sustainable development of supply chain. Energy and environmental issues (E&E) are complex and conflict objectives in supply chain planning problems, especially in oil & gas industry. This work shows a multicriteria decision strategy which takes account both objectives (E&E) applied to strategic planning of energetic supply chain in Colombian oil & gas industry. Environmental issues are represented by: a) new investment in green technologies (wind, solar and geothermal energy), b) environmental penalties within objective function using environmental retributive taxes. Energy issues are represented by typical mass and heat balances coupled to operating equipment conditions constraints. The model aim is to find an E&E optimal combination among actual utilities plants, commercial energy suppliers and new utilities plants. For this purpose, the model was formulated using an objective function which minimizes net present value of several E&E cost issues involved over a time horizon upper to 20 years. Future reservoirs of oil-crude and gas, chain energy requirements, sets of investments and emissions factor are the most important model inputs. The model obtained is a multi-period mixed-integer non-linear problem (MINLP) which includes additionally: energy reliability for commercial supplier, costs (fixed and variable), investments in conventional and green technologies for power generation, financial risk in energy prices from commercial suppliers. This model is implemented in GAMS (General Algebraic Modeling System) and applied to a representative chain supply of oil & gas Colombian industry composed by around 300 oil fields, 51 transport terminals and 4 refineries. Model results will be summarized in a decision matrix which will let to find future energy demand critical points, to evaluate environmental impact of power generation and take decisions about new investments.