The benefits of network optimization
 

Suppose a gas company operates a gas network with annual sales of 9 billion USD.
Operating costs are merely costs of energy, like fuel costs, plus maintenance.
If the gas company operates efficiently, the operating costs will be about 0.75% of the sales.

The most important aspects of the optimization of the network are:

• Maximization of the throughput (total capacity) of the network
• Minimization of costs of energy for compressors
• Solving the capacity problems from technology-, contract- and other conditions.

Our experience shows that 3-7% savings of compressor energy costs are common. 
In the first years this might even be 11%. 
The increase of sales, due to an increasing total throughput, is at the level of 3-7% as well.

Let’s suppose the energy savings and the increase of sales are both 3%.
Than:

The benefits of a better use of capacities are   27,000,000 USD/yr (at a profit level of 10%)
The benefits of a energy savings are                 2,025,000 USD/yr
 

Clich here for a publication with an 11,2% savings example  (at page 38)  (39 pages 475 kB)