Global optimization for the multilevel European gas market system with nonlinear flow models on trees

The European gas market is implemented as an entry-exit system, which aims to decouple transport and trading of gas. It has been modeled in the literature as a multilevel problem, which contains a nonlinear flow model of gas physics. Besides the multilevel structure and the nonlinear flow model, the computation of so-called technical capacities is another major challenge. These lead to nonlinear adjustable robust constraints that are computationally intractable in general. We provide techniques to equivalently reformulate these nonlinear adjustable constraints as finitely many convex constraints including integer variables in the case that the underlying network is tree-shaped. We further derive additional combinatorial constraints that significantly speed up the solution process. Using our results, we can recast the multilevel model as a single-level nonconvex mixed-integer nonlinear problem, which we then solve on a real-world network, namely the Greek gas network, to global optimality. Overall, this is the first time that the considered multilevel entry-exit system can be solved for a real-world sized network and a nonlinear flow model.

Assessment of risks for the gas industry in Russia in the context of the formation of a common gas market of the Eurasian Economic Union

The research aimed to identifies the risks for the development of the gas industry in Russia in the context of the emerging common gas market of the EAEU. The state of the gas industry in Russia and Russias cooperation with the EAEU member states in the gas sector are considered. The development of the Russian gas industry is determined both by the dominant position of the vertically integrated natural monopoly PJSC Gazprom, and by the characteristics of the global hydrocarbon energy market. Based on empirical data, it is concluded that the creation of a common gas market in the EAEU is not only a challenge to the development of the Russian gas industry, but also a measure to strengthen and expand its positions in the global energy market, increase the efficiency of participation in the global energy agenda, as well as an incentive for improving the domestic gas market in Russia.

Gas industry - a factor of international competitiveness

This is the first article of a series, devoted to a comprehensive problem of economic and geopolitical rivalry of the leading global powers in energy sector. It is dedicated to a number of topical issues of world economy and Russian economic environment. A systematic analysis of long-term world energy economy development trends is performed. For this purpose, a cause-and-effect relationship between international supply chains and energy procurement, on one hand, and revolutionary changes of international economic relations, caused by USA - China and Russia - USA, EU sanctions exchange, on the other, is derived. It is concluded that a developed gas industry is to play a decisive role in insuring global energy leadership of the major global powers on a mid- and long-term basis. A scenario analysis of further European gas market developments is provided. The external effects of developing gas industry are contemplated for Russian economic environment. In this framework most efficient options of action by Russian state are observed.

A tractable multi-leader multi-follower peak-load-pricing model with strategic interaction

While single-level Nash equilibrium problems are quite well understood nowadays, less is known about multi-leader multi-follower games. However, these have important applications, e.g., in the analysis of electricity and gas markets, where often a limited number of firms interacts on various subsequent markets. In this paper, we consider a special class of two-level multi-leader multi-follower games that can be applied, e.g., to model strategic booking decisions in the European entry-exit gas market. For this nontrivial class of games, we develop a solution algorithm that is able to compute the complete set of Nash equilibria instead of just individual solutions or a bigger set of stationary points. Additionally, we prove that for this class of games, the solution set is finite and provide examples for instances without any Nash equilibria in pure strategies. We apply the algorithm to a case study in which we compute strategic booking and nomination decisions in a model of the European entry-exit gas market system. Finally, we use our algorithm to provide a publicly available test library for the considered class of multi-leader multi-follower games. This library contains problem instances with different economic and mathematical properties so that other researchers in the field can test and benchmark newly developed methods for this challenging class of problems.

Gas supply/demand imbalance will persist into 2023

Significance The Asian spot price for liquefied natural gas (LNG) set records in late 2020 and again in October 2021, equivalent to USD325 per barrel of oil equivalent, with European gas prices some 30% lower. Gas prices will greatly influence living standards and economic prospects in 2022-23. Impacts The global gas market will be tight into 2022, but the scale of price rises depends on weather, Russian strategy and the economic situation. The market will turn back to oversupply, probably after 2023, assuming recent LNG projects stay on schedule. Gas companies are increasingly paying attention to decarbonisation and hydrogen, but this will not have a major direct impact in 2022-23.

Successful Deployment of Metal Expandable Technology with Inner String Stage Cementing System Overcomes Well Construction Challenges in Bab Field, UAE

Inability to effectively isolate depleted aquifer formations due to severe losses during cementation leads to accelerated corrosion of the production casing. Per current practice, a top job is performed from surface to fill the annulus with cement, but with limited success in a severe losses’ scenario. The objective is to improve zonal isolation by applying V0 rated multiple stage cementation technology with inner string thus enhancing well integrity during the life cycle of the well. A metal expandable annular sealing system was selected as a reliable isolation mechanism for effective cementation behind aquifers due to its ability to provide high expansion in potentially washed-out wellbores and the feature of long multi-element sealing systems with built in redundancy. The inner string operated stage cementing system provides a reliable solution to selectively and accurately place cement above the metal expandable packer whilst maintaining V0 casing integrity once closed. Additionally, the unique combination of technologies provides a cost-effective life of well solution compared to current stage cementing methodologies. Following successful execution of three trial jobs, the multi-stage cement using V0 rated tools and an inner string was compared to similar jobs done per current cementing practices. Analysis involved reviewing the cement bond column coverage and quality (CBL) with offset wells. Cement bond log results showed that this technique enhanced the cement column quality behind the 9 5/8" casing across the aquifer zones with moderate to good cement for the most part. Contaminated cement was observed just below the previous casing shoe and this could be addressed by adding another stage tool just above the previous casing shoe. Overall results show improved cement column quality for this section when compared to conventional jobs with similar conditions and is recommended for future use in severe to total losses scenario. In a situation where losses are seen at the previous casing shoe, a three-stage job is recommended. Other benefits include: Security and confidence in gas tight sealing capability and mechanical integrity Precise and conclusive operation for open, close and lock with no risk of accidental lock Ability to squeeze cement below the metal expandable packer No reduction in pressure rating regardless of OH ID and full bore ID of casing No post operation drill out required of the stage tools V0 stage cementing tools with inner string and metal expandable annular sealing system are not available on Oil & Gas market as a single tool. Therefore, this combined technology application of solutions from different technology providers to access a dedicated solution is totally novel and creates an opportunity for future applications across the industry.

New Intelligent Push-the-Bit Rotary Steerable System Helped Reducing Well Time and Maximized Directional Drilling Performance, Abu Dhabi, UAE

To meet the current oil and gas market challenges, there is an industry need to optimize cost by safely drilling longer horizontal wells to maximize well productivity. Drilling challenges include the highly deviated trajectory that starts from the surface sections and wellhead, the high DogLeg Sevirity (DLS) profile with collision risks, and the thin complex geological structures, especially in new unconventional fields where numerous geological and geomechanical uncertainties are present. To mitigate for those challenges, reviewing the existing drilling techniques and technologies is necessary. To compete in the current Hi-Tech and Automation era, the main challenges for directional drilling service providers are to reduce well time, place wells accurately, and improve reliability, reducing repair and maintenance costs and helping the customer reduce time and costs for the overall project. Offset wells analysis and risk assessments allowed identifying the main challenges and problems during directional drilling phases, which were highlighted and summarized. As a proposed solution, the new generation of intelligent fully rotating high dogleg push-the-bit rotary steerable system has been implemented in the UAE onshore oil and gas fields to improve the directional drilling control and the performance. This implementation reduced the Non-Productive time (NPT) related to the human errors as the fully automation capabilities were being utilized. The new rotary steerable system has the highest mechanical specs in the market including self-diagnosis and self-prognosis through digital electronics and sophisticated algorithms that monitor equipment health in real-time and allow for managing the tool remotely. As a result, the new intelligent RSS was implemented in all possible complex wellbore conditions, such as wells with high DLS profile, drilling vertical, curve, and lateral sections in a single trip with high mud weight and high solid contents. Automation cruise control gave the opportunity to eliminate any well profile issues and maintain the aggressive drilling parameters. Using the Precise Near-bit Inclination and Azimuth and the At-Bit Gamma real-time data and high-frequency tool face measurements in the landing intervals where required for precise positional control to enable entering the reservoir in the correct location and with the correct attitude helping the customer's Geology and Geophysics department to place wells accurately while maintaining a high on bottom ROP.

Impact of natural gas pricing policy for energy security and macroeconomic resilience: A literature review from global perspective

Indonesia’s government has targeted 24% of natural gas in the national energy mix by 2050. However, one of the main problems in Indonesia’s natural gas development is the price mechanism. Unlike many countries, Indonesia’s natural gas market, including its pricing, is still heavily regulated and subsidized by the government. The low natural gas price has damaged the investment climate and slowed the natural gas development in the country. An overview of the global natural gas market evolution, as well as a comprehensive analysis of natural gas market transformation from China and Malaysia, were presented in this paper. The wider gap between supply and demand of natural gas and the increase of the LNG market in Asia have pushed China and Malaysia to reform their natural gas market into a liberalized system. This provides an insight to examine Indonesia’s natural gas pricing policies. The highly regulated market often fails to provide the actual cost of supply, leads to underinvestment, and causes a natural gas shortage in a country. Natural gas pricing policy transformation is mandatory to ensure supply stability and keep up with the global natural gas market dynamic. The transformation should be implemented gradually to give natural gas producers and end-users enough time to adjust to the regulations. In the end, gas-to-gas competition should be set as the long-term goal to allow retail competition in Indonesia’s natural gas market.