Scheduling of crude oil operations under demand uncertainty: A robust optimization framework coupled with global optimization

Scheduling of crude oil operations is an important component of overall refinery operations, because crude oil costs account for about 80% of the refinery turnover. The mathematical modeling of blending different crudes in storage tanks results in many bilinear terms, which transform the problem into a challenging, nonconvex, mixed‐integer nonlinear programming (MINLP) optimization model. In practice, uncertainties are unavoidable and include demand fluctuations, ship arrival delays, equipment malfunction, and tank unavailability. In the presence of these uncertainties, an optimal schedule generated using nominal parameter values may often be suboptimal or even become infeasible. In this article, the robust optimization framework proposed by Lin et al. and Janak et al. is extended to develop a deterministic robust counterpart optimization model for demand uncertainty. The recently proposed branch and bound global optimization algorithm with piecewise‐linear underestimation of bilinear terms by Li et al. is also extended to solve the nonconvex MINLP deterministic robust counterpart optimization model and generate robust schedules. Two examples are used to illustrate the capability of the proposed robust optimization approach, and the extended branch and bound global optimization algorithm for demand uncertainty. The computational results demonstrate that the obtained schedules are robust in the presence of demand uncertainty. © 2011 American Institute of Chemical Engineers AIChE J, 58: 2373–2396, 2012     

Integrated crude selection and refinery optimization under uncertainty

Crude oil selection and procurement is the most important step in the refining process and impacts the profit margin of the refinery significantly. Due to uncertain quality of the crudes, conventional deterministic modeling and optimization methods are not suitable for refinery profitability enhancement. Therefore, a novel optimization scheme for crude oil procurement integrated with refinery operations in the face of uncertainties is presented. The decision process comprises two stages and is solved using a scenario‐based stochastic programming formulation. In Stage I, the optimal crude selections and purchase amounts are determined by maximizing the expected profit across all scenarios. In Stage II, the uncertainties are realized and optimal operations for the refinery are determined according to this realization. The resulting large‐scale mixed‐integer nonlinear programming formulation incorporates integer variables for crude selection and continuous variables for refinery operations, as well as bilinear terms for pooling processes. Nonconvex generalized Benders decomposition is used to solve this problem to obtain an global optimum efficiently. © 2015 American Institute of Chemical Engineers AIChE J, 62: 1038–1053, 2016     

Integrated gasoline blending and order delivery operations: Part I. short‐term scheduling and global optimization for single and multi‐period operations

Gasoline is one of the most valuable products in an oil refinery and can account for as much as 60–70% of total profit. Optimal integrated scheduling of gasoline blending and order delivery operations can significantly increase profit by avoiding ship demurrage, improving customer satisfaction, minimizing quality give‐aways, reducing costly transitions and slop generation, exploiting low‐quality cuts, and reducing inventory costs. In this article, we first introduce a new unit‐specific event‐based continuous‐time formulation for the integrated treatment of recipes, blending, and scheduling of gasoline blending and order delivery operations. Many operational features are included such as nonidentical parallel blenders, constant blending rate, minimum blend length and amount, blender transition times, multipurpose product tanks, changeovers, and piecewise constant profiles for blend component qualities and feed rates. To address the nonconvexities arising from forcing constant blending rates during a run, we propose a hybrid global optimization approach incorporating a schedule adjustment procedure, iteratively via a mixed‐integer programming and nonlinear programming scheme, and a rigorous deterministic global optimization approach. The computational results demonstrate that our proposed formulation does improve the mixed‐integer linear programming relaxation of Li and Karimi, Ind. Eng. Chem. Res., 2011, 50, 9156–9174. All examples are solved to be 1%‐global optimality with modest computational effort. © 2016 American Institute of Chemical Engineers AIChE J, 62: 2043–2070, 2016     

Recipe determination and scheduling of gasoline blending operations

Gasoline is a major contributor to the profit of a refinery. Scheduling gasoline‐blending operations is a critical and complex routine task involving tank allocation, component mixing, blending, product storage, and order delivery. Optimized schedules can maximize profit by avoiding ship demurrage, improving order delivery, minimizing quality give‐aways, avoiding costly transitions and slop generation, and reducing inventory costs. However, the blending recipe and scheduling decisions make this problem a nonconvex mixed‐integer nonlinear program (MINLP). In this article, we develop a slot‐based MILP formulation for an integrated treatment of recipe, specifications, blending, and storage and incorporate many real‐life features such as multipurpose product tanks, parallel nonidentical blenders, minimum run lengths, changeovers, piecewise constant profiles for blend component qualities and feed rates, etc. To ensure constant blending rates during a run, we develop a novel and efficient procedure that solves successive MILPs instead of a nonconvex MINLP. We use 14 examples with varying sizes and features to illustrate the superiority and effectiveness of our formulation and solution approach. The results show that our solution approach is superior to commercial solvers (BARON and DICOPT). © 2009 American Institute of Chemical Engineers AIChE J, 2010     

New approach for scheduling crude oil operations

Scheduling of crude oil operations is crucial to petroleum refining, which includes determining the times and sequences of crude oil unloading, blending, and CDU feeding. In the last decades, many approaches have been proposed for solving this problem, but they either suffered from composition discrepancy [Lee et al. 1996. Mixed-integer linear programming model for refinery short-term scheduling of crude oil unloading with inventory management. Industrial and Engineering Chemistry Research 35, 1630-1641; Jia et al., 2003. Refinery short-term scheduling using continuous time formulation: crude-oil operations. Industrial and Engineering Chemistry Research 42, 3085-3097; Jia and Ierapetritou, 2004. Efficient short-term scheduling of refinery operations based on a continuous time formulation. Computer and Chemical Engineering 28, 1001-1019] or led to infeasible solutions for some cases [Reddy et al., 2004a. Novel solution approach for optimizing crude oil operations. A.I.Ch.E. Journal 50(6), 1177-1197; 2004b. A new continuous-time formulation for scheduling crude oil operations. Chemical Engineering Science 59, 1325-1341]. In this paper, coastal and marine-access refineries with simplified workflow are considered. Unlike existing approaches, the new approach can avoid composition discrepancy without using iterative algorithm and find better solution effectively. In this approach, a new mixed integer non-linear programming (MINLP) formulation is set up for crude oil scheduling firstly, and then some heuristic rules collected from expert experience are proposed to linearize bilinear terms and prefix some binary variables in the MINLP model. Thus, crude oil scheduling can be expressed as a complete mixed integer linear programming (MILP) model with fewer binary variables. To illustrate the advantage of the new approach, four typical examples are solved with three models. The new model is compared with the most effective models (RKS(a) and RKS(b) models) presented by Reddy et al. [2004a. Novel solution approach for optimizing crude oil operations. A.I.Ch.E. Journal 50(6), 1177-1197; 2004b. A new continuous-time formulation for scheduling crude oil operations. Chemical Engineering Science 59, 1325-1341], which proves that the new approach is valid and feasible in most small-size and medium-size problems.     

Energy optimization of water supply system scheduling: Novel MINLP model and efficient global optimization algorithm

This article is concerned with global optimization of water supply system scheduling with pump operations to minimize total energy cost. The scheduling problem is first formulated as a non‐convex mixed‐integer nonlinear programming (MINLP) problem, accounting for flow rates in pipes, operation profiles of pumps, water levels of tanks, and customer demand. Binary variables denote on–off switch operations for pumps and flow directions in pipes, and nonlinear terms originate from characteristic functions for pumps and hydraulic functions for pipes. The proposed MINLP model is verified with EPANET, which is a leading software package for water distribution system modeling. We further develop a novel global optimization algorithm for solving the non‐convex MINLP problem. To demonstrate the applicability of the proposed model and the efficiency of the tailored global optimization algorithm, we present results of two case studies with up to 4 tanks, 5 pumps, 5 check valves, and 21 pipes. © 2016 American Institute of Chemical Engineers AIChE J, 62: 4277–4296, 2016     

Source-based discrete and continuous-time formulations for the crude oil pooling problem

The optimization of crude oil operations in refineries is a challenging scheduling problem due to the need to model tanks of varying composition with nonconvex bilinear terms, and complicating logistic constraints. Following recent work for multiperiod pooling problems of refined petroleum products, a source-based mixed-integer nonlinear programming formulation is proposed for discrete and continuous representations of time. Logistic constraints are modeled through Generalized Disjunctive Programming while a specialized algorithm featuring relaxations from multiparametric disaggregation handles the bilinear terms. Results over a set of test problems from the literature show that the discrete-time approach finds better solutions when minimizing cost (avoids source of bilinear terms). In contrast, solution quality is slightly better for the continuous-time formulation when maximizing gross margin. The results also show that the specialized global optimization algorithm can lead to lower optimality gaps for fixed CPU, but overall, the performance of commercial solvers BARON and GloMIQO are better.     

Global optimization in property‐based interplant water integration

This article presents a new global optimization method for the interplant water integration based on properties to characterize streams with numerous components. The problem is formulated as an mixed‐integer non‐linear programming (MINLP) model based on a superstructure that involves all possible options of interest (i.e., reuse and recycle in the same and to other plants and a set of shared treatment units). This formulation exhibits multiple local minima, and to overcome this problem, this article proposes effective branching rules in addition to two new reformulations for the upper bound (integer feasible solution) and the lower limit (relaxed solution), which are incorporated into a spatial branch and bound procedure to handle the bilinear terms in the model. The objective consists in finding the configuration with the minimum total annual cost. Results show that the global optimal solution (involving significant reductions in the fresh water consumption) is reached in few iterations and short central processing unit (CPU) time. © 2012 American Institute of Chemical Engineers AIChE J, 59: 813–833, 2013     

A discretization-based approach for the optimization of the multiperiod blend scheduling problem

In this paper, we introduce a new generalized multiperiod scheduling version of the pooling problem to represent time varying blending systems. A general nonconvex MINLP formulation of the problem is presented. The primary difficulties in solving this optimization problem are the presence of bilinear terms, as well as binary decision variables required to impose operational constraints. An illustrative example is presented to provide unique insight into the difficulties faced by conventional MINLP approaches to this problem, specifically in finding feasible solutions. Based on recent work, a new radix-based discretization scheme is developed with which the problem can be reformulated approximately as an MILP, which is incorporated in a heuristic procedure and in two rigorous global optimization methods, and requires much less computational time than existing global optimization solvers. Detailed computational results of each approach are presented on a set of examples, including a comparison with other global optimization solvers.     

Optimization of large‐scale water transfer networks: Conic integer programming model and distributed parallel algorithms

The optimization of a multi‐echelon water transfer network (WTN) and the associate transportation and inventory systems with demand uncertainty is addressed in article. Optimal network structure, facility locations, operation capacities, as well as the inventory and transportation decisions can be simultaneously determined by the mixed integer nonlinear programming (MINLP) model which includes bilinear, square root and nonlinear fractional terms. By exploiting the properties of this model, we reformulate the MINLP problem as a conic integer optimization model. To overcome the memory and computing bandwidth limitations caused by the huge number of active nodes in the branch‐and‐bound search tree, novel distributed parallel optimization algorithms based on Lagrangean relaxation and message passing interface as well as their serial versions are proposed to solve the resulting conic integer programming model. A regional WTN in China is studied to demonstrate the applicability of the proposed model and the performance of the algorithms. © 2016 American Institute of Chemical Engineers AIChE J, 63: 1566–1581, 2017     

Operational strategy and planning for raw natural gas refining complexes: Process modeling and global optimization

Optimal operational strategy and planning of a raw natural gas refining complex (RNGRC) is very challenging since it involves highly nonlinear processes, complex thermodynamics, blending, and utility systems. In this article, we first propose a superstructure integrating a utility system for the RNGRC, involving multiple gas feedstocks, and different product specifications. Then, we develop a large‐scale nonconvex mixed‐integer nonlinear programming (MINLP) optimization model. The model incorporates rigorous process models for input and output relations based on fundamentals of thermodynamics and unit operations and accurate models for utility systems. To reduce the noncovex items in the proposed MINLP model, equivalent reformulation techniques are introduced. Finally, the reformulated nonconvex MINLP model is solved to global optimality using state of the art deterministic global optimization approaches. The computational results demonstrate that a significant profit increase is achieved using the proposed approach compared to that from the real operation. © 2016 American Institute of Chemical Engineers AIChE J, 63: 652–668, 2017     

Refinery continuous-time crude scheduling with consideration of long-distance pipeline transportation

In reality, crudes from unloading storage tanks at a docking berth may experience long-distance pipeline transportation to refinery charging tanks before their processing by crude distillation units. Such pipeline transportations cause significant transport delay and crude holdup that will substantially affect plant production performance. Unfortunately, current short-term crude scheduling studies have never systematically considered these issues. In this work, a new continuous-time crude scheduling model has been developed, which addresses the long-distance pipeline transportation and other realistic considerations such as brine settling and multiple jetties for crude unloading. The feeding of crudes into pipeline, and crude movements inside pipeline, as well as crude discharging to the receiving charging tanks are combined with the continuous time formulation of crude scheduling. The efficacy of the developed scheduling model has been demonstrated by three case studies including one industrial size example. An outer-approximation (OA) based iterative algorithm (Karuppiah et al., 2008) is implemented to successfully solve the case studies.     

Lagrangian decomposition approach to scheduling large-scale refinery operations

This work focuses on the scheduling of refinery operations from crude oil processing to the blending and dispatch of finished products. A new algorithm for Lagrangian decomposition (LD) is proposed and applied to realistic large scale refinery scheduling problem to evaluate its efficiency. A novel strategy is presented to formulate restricted relaxed sub-problems based on the solution of the Lagrangian relaxed sub-problems that take into consideration the continuous process characteristic of the refinery. This new algorithm, referred to as restricted Lagrangian decomposition algorithm, the best lower bound is obtained amongst the restricted-relaxed sub-problems and relaxed sub-problems in each iteration. The goal of the decomposition is to produce better solutions for those integrated scheduling problems that cannot be solved in reasonable computation times. The application of the proposed algorithm results in substantial reduction in CPU solution time, duality gap, and the total number of iterations compared to classical LD.     

Integrated multi‐echelon supply chain design with inventories under uncertainty: MINLP models,computational strategies

We address in this article a problem that is of significance to the chemical industry, namely, the optimal design of a multi‐echelon supply chain and the associated inventory systems in the presence of uncertain customer demands. By using the guaranteed service approach to model the multi‐echelon stochastic inventory system, we develop an optimization model to simultaneously determine the transportation, inventory, and network structure of a multi‐echelon supply chain. The model is an MINLP with a nonconvex objective function including bilinear, trilinear, and square root terms. By exploiting the properties of the basic model, we reformulate this problem as a separable concave minimization program. A spatial decomposition algorithm based on the integration of Lagrangean relaxation and piecewise linear approximation is proposed to obtain near global optimal solutions with reasonable computational expense. Examples for specialty chemicals and industrial gas supply chains with up to 15 plants, 100 potential distribution centers, and 200 markets are presented. © 2009 American Institute of Chemical Engineers AIChE J, 2010     

An MILP-MINLP decomposition method for the global optimization of a source based model of the multiperiod blending problem

The multiperiod blending problem involves binary variables and bilinear terms, yielding a nonconvex MINLP. In this work we present two major contributions for the global solution of the problem. The first one is an alternative formulation of the problem. This formulation makes use of redundant constraints that improve the MILP relaxation of the MINLP. The second contribution is an algorithm that decomposes the MINLP model into two levels. The first level, or master problem, is an MILP relaxation of the original MINLP. The second level, or subproblem, is a smaller MINLP in which some of the binary variables of the original problem are fixed. The results show that the new formulation can be solved faster than alternative models, and that the decomposition method can solve the problems faster than state of the art general purpose solvers.     

Global optimization for sustainable design and synthesis of algae processing network for CO2 mitigation and biofuel production using life cycle optimization

Global optimization for sustainable design and synthesis of a large‐scale algae processing network under economic and environmental criteria is addressed. An algae processing network superstructure including 7800 processing routes is proposed. Based on the superstructure, a multiobjective mixed‐integer nonlinear programming (MINLP) model is developed to simultaneously optimize the unit cost and the unit global warming potential (GWP). To efficiently solve the nonconvex MINLP model with separable concave terms and mixed‐integer fractional terms in the objective functions, a global optimization strategy that integrates a branch‐and‐refine algorithm based on successive piecewise linear approximations is proposed and an exact parametric algorithm based on Newton's method. Two Pareto‐optimal curves are obtained for biofuel production and biological carbon sequestration, respectively. The unit annual biofuel production cost ranges from $7.02/gasoline gallon equivalent (GGE) to $9.71/GGE, corresponding to unit GWP's of 26.491 to 16.52 kg CO₂‐eq/GGE, respectively. © 2014 American Institute of Chemical Engineers AIChE J, 60: 3195–3210, 2014     

原油作业过程优化的研究进展

原油作业过程是石油供应链的重要组成环节,包括炼油企业生产过程中的原油采购、原油分配、原油输送、原油储存和原油调和等多个工业流程。原油作业过程优化具有很高的学术理论价值与工业应用价值,与其相关的研究工作是目前学术界与工业界共同关注的热点。首先简要描述了原油作业过程,并对其优化问题的难点进行分析;其次,分别从优化模型、优化算法以及不确定性优化方法三个研究角度,重点阐述了原油采购优化、原油储运优化、原油调和优化以及不确定性条件下原油作业优化四个主要研究方向的学术进展,并对当前已有的研究成果进行了归纳总结;最后,对原油作业过程优化当前存在的一些问题提出了建议,并对该领域未来的发展方向与趋势进行了展望。     

Global optimization for scheduling refinery crude oil operations

In this work we present an outer-approximation algorithm to obtain the global optimum of a nonconvex mixed-integer nonlinear programming (MINLP) model that is used to represent the scheduling of crude oil movement at the front-end of a petroleum refinery. The model relies on a continuous time representation making use of transfer events. The proposed algorithm focuses on effectively solving a mixed-integer linear programming (MILP) relaxation of the nonconvex MINLP to obtain a rigorous lower bound (LB) on the global optimum. Cutting planes derived by spatially decomposing the network are added to the MILP relaxation of the original nonconvex MINLP in order to reduce the solution time for the MILP relaxation. The solution of this relaxation is used as a heuristic to obtain a feasible solution to the MINLP which serves as an upper bound (UB). The lower and upper bounds are made to converge to within a specified tolerance in the proposed outer-approximation algorithm. On applying the proposed technique to test examples, significant savings are realized in the computational effort required to obtain provably global optimal solutions.     

An improved piecewise outer-approximation algorithm for the global optimization of MINLP models involving concave and bilinear terms

In this paper a new version of the Outer Approximation for Global Optimization Algorithm by Bergamini et al. [Bergamini, M.L., Aguirre, P., & Grossmann, I.E. (2005a). Logic based outer approximation for global optimization of synthesis of process networks. Computers and Chemical Engineering 29, 1914] is proposed, in order to speed up the convergence in nonconvex MINLP models that involve bilinear and concave terms. Bounding problems are constructed replacing these nonconvex terms by piecewise linear underestimators. These problems, which correspond to mixed-integer linear programs, are solved to generate approximate solutions with improved objective value. When no further feasible solution can be found, this guarantees that the upper bound cannot be improved in the nonconvex problem, thus providing a termination criterion. The new algorithm is applied to five different synthesis problems in the areas of water networks, heat exchanger networks and distillation sequences. The results show a significant reduction in the computational cost compared with the previous version of the algorithm.     

A new continuous-time formulation for scheduling crude oil operations

In today's competitive business climate characterized by uncertain oil markets, responding effectively and speedily to market forces, while maintaining reliable operations, is crucial to a refinery's bottom line. Optimal crude oil scheduling enables cost reduction by using cheaper crudes intelligently, minimizing crude changeovers, and avoiding ship demurrage. So far, only discrete-time formulations have stood up to the challenge of this important, nonlinear problem. A continuous-time formulation would portend numerous advantages, however, existing work in this area has just begun to scratch the surface. In this paper, we present the first complete continuous-time mixed integer linear programming (MILP) formulation for the short-term scheduling of operations in a refinery that receives crude from very large crude carriers via a high-volume single buoy mooring pipeline. This novel formulation accounts for real-world operational practices. We use an iterative algorithm to eliminate the crude composition discrepancy that has proven to be the Achilles heel for existing formulations. While it does not guarantee global optimality, the algorithm needs only MILP solutions and obtains excellent maximum-profit schedules for industrial problems with up to 7 days of scheduling horizon. We also report the first comparison of discrete- vs. continuous-time formulations for this complex problem.