Development and assessment of a distribution network of hydro-methane, methanol, oxygen and carbon dioxide in Paraguay

This paper summarizes key results of the analysis of different transport modes of hydro-methane, methanol, carbon dioxide and oxygen in Paraguay, Brazil and Argentina. Hydro-methane is produced in Paraguay and can be used to fuel natural gas vehicles, substituting gasoline and diesel which are at the moment imported from foreign countries. Methanol, also produced in Paraguay, is delivered to Brazil, which is one of the Countries with the highest demand in the region. Oxygen can be sold to Argentina for medical and industrial use. Carbon dioxide is delivered throughout Paraguay. The aim of this study is to determine the best transportation technology from an economic and strategic point of view, minimizing costs associated to products distribution. Several scenarios are investigated; each scenario is associated with different delivery modes. A model is developed to estimate both capital and variable costs for different transportation technologies (pipeline, trucks, ships) in order to choose the lowest-cost delivery mode for each product, depending on distances and flow rates. Four different analysis are performed for each scenario, varying the number of vehicles which must be fueled by hydro-methane and considering its influence on the results. The methodology presented here has a general value, thus it can be easily employed for the economic analysis of different fuels and distribution networks, also placed in different scenarios. © 2013 Elsevier Ltd. All rights reserved.