An optimization model for guiding the petrochemical industry development in Saudi Arabia

Hesham K. Alfares*, Adnan M. Al-Amer

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

36 Scopus citations

Abstract

A mixed integer linear programming model is formulated for determining the optimum plan for the expansion of the Saudi Arabian petrochemical industry. The products selected for consideration fall into four categories: propylene derivatives, ethylene derivatives, synthesis gas derivatives, and aromatic derivatives. The model incorporates new variables and constraints, and realistic estimates of production costs, which are calculated based on local conditions in Saudi Arabia. For each production process, the unit production cost is assumed to be a function of production capacity. The input data for each product includes relevant production technologies, capacities, local production costs, and selling price. The solution of the model gives the recommended products under different scenarios of available capital investment and feedstock. The results are reported and analyzed.

Original languageEnglish
Pages (from-to)671-687
Number of pages17
JournalEngineering Optimization
Volume34
Issue number6
DOIs
StatePublished - Dec 2002

Bibliographical note

Funding Information:
The authors would like to express gratitude to King Fahd University of Petroleum and Minerals and to SABIC for support of this work under Project # SABIC=2000-07.

Keywords

  • Industrial development
  • Integer programming models
  • Investment models
  • Optimization
  • Petrochemical industry

ASJC Scopus subject areas

  • Computer Science Applications
  • Control and Optimization
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Applied Mathematics

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