KAPSARC developed an optimization model and a user-friendly online interface for it to represent the operational and investment decisions of the Saudi refined products distribution network. It is fully described in this KAPSARC paper. A simplified schematic is shown below. The way analyses are run now are from 2021 to 2040, in either monthly or annual time steps. But, this can be changed for future analyses.
The model considers every asset in the system: oil refineries, bulk plants or fuel depots, and individual roads and pipelines. We have a trucking cost attributed to every road in the Kingdom as of 2023. Moreover, refined products’ demands are disaggregated into nearly 500 zones in Saudi Arabia. The demand zones are depicted below. For instance, national diesel demand is broken down to demands in each of the 500 zones.
The rationale of the model is to meet domestic demands for the fuels at least cost for all stakeholders (Aramco, private logistics firms, and retail stations). This entails finding the least costly transport modes and road paths.