New Approach to Natural Gas Distribution Planning Yields Optimized Portfolio

Strategic Insights -

Researchers from Federal University Mato Grosso have presented a novel approach integrating geographic information system (GIS) and multicriteria decision-making/aiding (MCDM/A) to develop a decision support system (DSS) for natural gas distribution planning. The study outlines possible projects for extending natural gas distribution networks using a multicriteria model with a benefit-to-cost ratio-based (BCR-based) technique for portfolio selection.

This DSS considers multiple criteria including payback, internal rate of return, demand for natural gas, risk, and cost considerations, to evaluate different investment decisions and identify the optimal solution. The model also considers a decision rule that meets the conditions of the business model of developing natural gas distribution networks. The proposed approach has demonstrated an optimal portfolio of projects obtained consuming 97.38% of the budget while ensuring spatial connectivity and operational feasibility.

Key Takeaways:

  • Researchers from Federal University Mato Grosso have developed a novel approach to natural gas distribution planning using a decision support system (DSS) that integrates GIS and multicriteria decision-making/aiding (MCDM/A).
  • The DSS considers multiple criteria including payback, internal rate of return, demand for natural gas, risk, and cost considerations to evaluate different investment decisions and identify the optimal solution.
  • The model has demonstrated an optimal portfolio of projects obtained consuming 97.38% of the budget while ensuring spatial connectivity and operational feasibility.
  • The proposed approach has been applied to a real-world case study faced by a Brazilian natural gas distribution company.
  • The study presents a new modeling approach for portfolio problems, combining the ROC (Rank Order Centroid) surrogate weighting technique with the swing elicitation procedure to obtain ranking of criteria weights.
  • The model also considers a decision rule that meets the conditions of the business model of developing natural gas distribution networks.
  • The proposed DSS has demonstrated robust performance under varying input conditions, as shown by a sensitivity analysis.
  • Researchers from Federal University Mato Grosso have presented their findings in the journal "Discover Applied Sciences," volume 7, issue 7, page 1-22.

Statistics:

  • The optimal portfolio of projects obtained by the proposed DSS consumes 97.38% of the budget.
  • The model considers multiple criteria including payback, internal rate of return, demand for natural gas, risk, and cost considerations.
  • The proposed DSS has been applied to a real-world case study faced by a Brazilian natural gas distribution company.
  • The study presents a new modeling approach for portfolio problems, combining the ROC (Rank Order Centroid) surrogate weighting technique with the swing elicitation procedure.
  • The model also considers a decision rule that meets the conditions of the business model of developing natural gas distribution networks.

Sources:

  • A GIS-based multicriteria decision support system for natural gas distribution planning. Discover Applied Sciences, 2025,7(7):1-22. The publisher for Discover Applied Sciences is Springer. A free version of this journal article is available at https://doi-org.sdpl.idm.oclc.org/10.1007/s42452-025-06549-6.
  • NewsRx. Researchers from Federal University Mato Grosso Detail New Studies and Findings in the Area of Energy (A GIS-based multicriteria decision support system for natural gas distribution planning). Energy Weekly News. September 5, 2025; p 755.