The Romanian natural gas market is still in its infancy regarding the manners in which the demand and supply match. We are frequently talking about market liquidity or about its dynamic behavior, without considering the monthly losses of the national natural gas system operator that derive from the very lack of matching the supply and demand. The present article proposes a method of overlaying the two in a manner that is feasible for the Romanian natural gas market of 2017, a method that will encapsulate the usage of OBAs (operational balancing agreements) in correlation with a model of allocating the demand and supply as a restricted all-pairs shortest path problem. Based on authors experience, five main variables will be examined: point-of-entry (location and time), volume, time and location of delivery, as well as other sets of data that are particular to this sector. This article will tackle the area of usability of OBAs between suppliers and the degrees of sustainability that such a model offers for clients, therefore the resilience of the system will be analyzed through an optimized transfer of information and accessibility to assets. Due to the complex nature of demand in energy markets and the different requirements set by clients, in which an energy resource can be requested by different sets of users, we will conceive a model that can be applied for natural gas, but also for electric energy production and industrial clients. The scope of this endeavor is to create a tool that will minimize the monthly losses of the national natural gas system operator, as well as its distributors, by allocating, in a fair and unbiased way, the responsibility of fulfilling the requested demand in a certain time unit.
If the inline PDF is not rendering correctly, you can download the PDF file here.
Dijkstra, E. (1959). A Note on Two Problems in Connexion with Graphs. Numerische Mathematik, 269-271.
DNV KEMA Energy & Sustainability and COWI Belgium. (2013). Study on Entry-Exit Regimes in Gas. Groningen, The Netherlands: European Commission – DG ENERGY.
Duffie, D., Garleanu, N., & Heje Pedersen, L. (2007). Valuation in Over-the-Counter Markets. The Review of Financial Studies, 1865-1900.
European Parliament and the European Council. (2009). Regulation (EU) No. 715/2009 on conditions for access to the natural gas transmission networks. Bruxelles, Belgium: European Parliament.
European Parliament and the European Council. (2010). Regulation (EU) No. 994/2010 concerning measures to safeguard security of gas supply. Bruxelles, Belgium: European Parliament.
Hochbaum, D. (2014). Lecture Notes for IEOR 266: Graph Algorithms and Network Flows - Section 8.9 Floyd-Warshall algorithm for all pairs shortest paths. Department of Industrial Engineering and Operations Research, University of California, Berkeley.
Oxford Institute for Energy Studies. (December 2015). The evolution of European traded gas hubs. Oxford, UK: Oxford Institute for Energy Studies.
Romanian Ministry of Energy. (2016, 10 05). Nota de fundamentare OUG 64/2016 pentru modificarea și completarea Legii energiei electrice și a gazelor naturale nr. 123/2012. Retrieved 03 02, 2017, from Guvernul Romaniei: http://gov.ro/ro/guvernul
SNTGN Transgaz SA Mediaș. (2014). Planul de Dezvoltare al Sistemului Național de Transport Gaze Naturale 2014-2023. Mediaș: SNTGN Transgaz SA.
Sukumar, M., Madhumangal, P., & Tapan, P. K. (2003, March). An Optimal Algorithm to Solve the All-Pairs Shortest Paths Problem on Permutation Graphs. Journal of Mathematical Modelling and Algorithms, 2(1), 57-65.