Optimisation of gas flows in South Eastern Australia via controllable Markov chains

We consider the optimal flows of intra-day gas supply for the production and pipeline network for Adelaide, Melbourne and Sydney. We model the demand in the network of three major cities as a system of connected three state Markov chains subject to shortfall, pipeline capacity and production capacity constraints. A comparison with a static optimisation model is provided to show the improved capacity for the analysis of demand satisfaction in this model.