Optimal Hub Location in Pipeline Networks

This paper discusses optimization strategies and techniques for the location of natural gas marketing hubs in the north American gas pipeline network. A hub is a facility at which inbound and outbound network links meet and freight is redirected towards their destinations. Common examples of hubs used in the gas pipeline industry include gas plants, interconnects and market centers. Characteristics of the gas pipeline industry which are relevant to the optimization of transportation costs using hubs are presented. Proven techniques for solving location-allocation problems are discussed. An outline of the research in process by the authors in the field of optimal gas hub location concludes the paper.