Optimization of the gas production rate by marginal cost analysis: Influence of the sales gas pressure, gas price and duration of gas sales contract

Suprapto Soemardan, Widodo Wahyu Purwanto, Arsegianto

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

The development of a gas field requires accurate planning, but the gas production rate is one of the main challenges in determining the feasibility of a gas project. An optimum gas production rate is determined not only by the gas reserve and reservoir characteristics but also by the consumer's requirements of the sales gas pressure, duration of the gas sales contract and gas price. This paper presents a gas production optimization model based on the marginal cost approach to maximize economic profit using a case study in the Donggi gas field. The results reveal that increasing the sales gas pressure and gas price raises the optimum gas production rate and increases the maximum profit; meanwhile, increasing the duration of a gas sales contract will reduce the optimum gas production rate and reduce or increase the maximum profit depending on the gas reserve and reservoir characteristics. This work clearly shows the relationship between the user's requirements and optimum gas production rate, which is an important piece of information for negotiating the gas price and planning production.

Original languageEnglish
Pages (from-to)396-404
Number of pages9
JournalJournal of Natural Gas Science and Engineering
Volume18
DOIs
Publication statusPublished - 1 Jan 2014

Keywords

  • Marginal cost
  • Natural gas field
  • Production optimization

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