Stochastic Control and Pricing for Natural Gas Networks

Vladimir Dvorkin, Anubhav Ratha, Pierre Pinson, Jalal Kazempour

Research output: Contribution to journalJournal articleResearchpeer-review

105 Downloads (Pure)


We propose stochastic control policies to cope with uncertain and variable gas extractions in natural gas networks. Given historical gas extraction data, these policies are optimized to produce the real-time control inputs for nodal gas injections and for pressure regulation rates by compressors and valves. We describe the random network state as a function of control inputs, which enables a chance-constrained optimization of these policies for arbitrary network topologies. This optimization ensures the real-time gas flow feasibility and a minimal variation in the network state up to specified feasibility and variance criteria. Furthermore, the chance-constrained optimization provides the foundation of a stochastic pricing scheme for natural gas networks, which improves on a deterministic market settlement by offering the compensations to network assets for their contribution to uncertainty and variance control. We analyze the economic properties, including efficiency, revenue adequacy and cost recovery, of the proposed pricing scheme and make them conditioned on the network design.
Original languageEnglish
JournalIEEE Transactions on Control of Network Systems
Issue number1
Pages (from-to)450 - 462
Number of pages12
Publication statusPublished - 2022


  • Chance-constrained programming
  • Conic duality
  • Gas pricing
  • Natural gas network
  • Uncertainty
  • Variance


Dive into the research topics of 'Stochastic Control and Pricing for Natural Gas Networks'. Together they form a unique fingerprint.

Cite this