Improved method and practice for site selection of underground gas storage under complex geological conditions

• Published in: Journal of natural gas science and engineering 2022-12, Vol.108, p.104813, Article 104813
• Main Authors: Guo, Wenpeng, Zhang, Bo, Liang, Yongtu, Qiu, Rui, Wei, Xuemei, Niu, Pengtao, Zhang, Haoran, Li, Zhuochao
• Format: Article
• Language: English
• Subjects: Decision-making; NG supply Chain; Optimization; Site selection; UGS
• ISSN: 1875-5100
• DOI: 10.1016/j.jngse.2022.104813

Increasing attention has been paid to the site selection of Underground Gas Storage (UGS) due to the growing demand for natural gas peak shaving. Existing studies have made a practical contribution to this field based on the multidimensional geological exploration data and the multi-criteria decision-making method. However, previous studies mainly focused on screening or ranking technologies with different principles, which means only the attributes of UGS in the design period were considered while the performance in the operation period was ignored. The operation plan and economic performance are considerable concerns to the UGS investors especially when this type of storage facility was unbundling from other sectors in natural gas companies. To solve the UGS site selection problems more comprehensively and practically, the geological conditions and the injection & extraction plan in the operation period are considered Simultaneously. A case from the S-X area in China indicates that: 1. The improved multi-period optimization model of the natural gas (NG) supply chain can obtain the injection and production plan of UGS which are the basic parameters for the economic analysis. 2. The top potential UGS estimated by geological conditions may take inferior performance in the operation stage (less peak shaving amount, low economic profits, and high freight of NG supply chain), so the UGS investors should consider the potential profits when the finished UGS is put into operation. The proposed framework can be a new theoretical guideline for the site selection problems of UGSs and can help UGS investors judge their investment. •The geological data and the operation plan are considered in UGS site selection.•Screening principles for different type of UGS are proposed.•Peak shaving benefit of UGS for NG supply chain is given.•An optimization model is formulated to get the UGS operation plan.