Stochastic programming model for gas resources allocation in Iran with emphasis on energy security cost approach

The purpose of this paper is to present a model for gas allocation to different sub-sectors in Iran by means of Non-Linear Programming method. Stochastic programming approach is applied to obtain the optimal system configuration meeting the gas demand in different subsectors based on available gas produced. The model considers possible threats would occur in natural gas supply. The solutions provide gas allocation to different sub-sectors at macro level taking the possible threats in to consideration. Research results show the significant percentage share of gas should be assigned to residential-commercial, power plants, industries, natural gas injection, exportation, petrochemical, rich gas injection, transportation and agriculture respectively. The novelty of this work is its ability to quantitate possible threats using stochastic programming approach in order to provide more holistic point of view on energy security factors impacting gas allocation in Iran.