Abstract: | A gas distribution company must satisfy at every instant of time an exogenous demand. In order to meet the peak demand in the most economic way, it can resort to storage and peak shaving techniques. For the case of a local distribution company linked to a national gas grid through a connection of bounded transmission capacity, we derive a schedule of drawing gas from the national grid that minimizes the storage capacity required under the assumption of deterministic demand. The storage minimizing schedule is derived through both elementary and optimal control methods. An extension is possible for the case of stochastic demand. |