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Title: Considerations And Use Of A Gas Supply Model Applied To Company Planning
Author: Thomas A. Sacco
Source: American Gas Association 1979
Year Published: 1979
Abstract: When I was asked to give this presentation several months ago, I couldnt help but reminisce about how the gas-supply mix situation had changed even within the ten short years that 1 have been involved with the problem. During the late sixties, gas-supply planning was not encumbered by todays supply constraints and, like many other businesses, we determined our supply mix based on simple economics. Each season we received a projection of the expected load lo be added from our marketing departments. When this increment of new load was added to our known requirements, we then calculated the level of pipeline gas required. We would attempt to purchase pipeline gas up to the point where the incremental cost of purchasing the gas was equal to the incremental cost of peak-shaving. Load duration analysis would indicate the break-even pipeline level and the volumes of production required. (See Fig. I).

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