Abstract
This paper addresses the optimal design and operations of water supply chain networks for shale gas production. We develop a mixed-integer linear fractional programming (MILFP) model with the objective to maximize profit per unit freshwater consumption, such that both economic performance and water-use efficiency are optimized. The model simultaneously accounts for the design and operational decisions for freshwater source selection, multiple transportation modes, and water management options. Water management options include underground injection, commercial centralized wastewater treatment (CWT), and different onsite treatment technologies. To globally optimize the resulting MILFP problem efficiently, we present three tailored solution algorithms: a parametric approach, a reformulation-linearization method, and a novel Branch-and-Bound & Charnes-Cooper transformation method. The proposed models and algorithms are illustrated through one case study based on Marcellus shale play, in which onsite treatment shows its superiority in improving freshwater conservancy, maintaining a stable water flow, and reducing transportation burden.
