Technical paper
Incorporation Of Producer Contracts In Gas Plant Optimization Techniques
Most process engineers consider gas plant economics only in terms of minimizing utilities and maximizing product, and they are leaving money on the table because of it. One aspect that should play a major role in optimization analysis, but commonly gets overlooked, is considering how contract structures with upstream producers and downstream markets affect gas plant profitability. Highest recoveries and lowest utilities are not always the true economic optimal points, especially when under fixed recovery contracts. A more wholistic approach considers producer contract structures and incorporates them into an overall economic function of the plant. These factors, integrated with a process simulator, show the true economic optimal operating conditions. To demonstrate the importance of process engineers understanding and capitalizing on producer contracts, this approach is applied to scenarios in which the contract structures would be a key factor in determining the optimal operating conditions of a gas plant.
Most process engineers consider gas plant economics only in terms of minimizing utilities and maximizing product, and they are leaving money on the table because of it. One aspect that should play a major role in optimization analysis, but commonly gets overlooked, is considering how contract structures with upstream producers and downstream markets affect gas plant profitability. Highest recoveries and lowest utilities are not always the true economic optimal points, especially when under fixed recovery contracts. A more wholistic approach considers producer contract structures and incorporates them into an overall economic function of the plant. These factors, integrated with a process simulator, show the true economic optimal operating conditions. To demonstrate the importance of process engineers understanding and capitalizing on producer contracts, this approach is applied to scenarios in which the contract structures would be a key factor in determining the optimal operating conditions of a gas plant.