In this work, an innovative numerical algorithm accompanied by considerable accuracy is presented to reduce the computational cost of subsurface flow modeling. This method
combines a modified multi-scale finite volume method (MMsFV) and streamline method based on
the sequential approach. First, the modified multi-scale finite volume method, which includes a
physical adaptation on the localization assumption, is employed to obtain a conservative velocity
field with a similar cost to traditional upscaling methods. Then, the swift streamline method is
utilized to solve the transport equation using the computed, conservative velocity field. The physical
modification on the multi-scale framework imposes the nature of the actual flow moving from
the multi-dimensional into 1-D local problems, which are constructed for calculating the boundary
conditions in localization procedures. This physical modification is known as the modified variable
boundary conditions (VBC) approach. The more accurate boundary conditions are generated for
calculating basis and correction functions applied in multi-scale finite volume method. Here, the
formulation and algorithm of the proposed and combined method, called the Modified Multi-scale
Finite Volume Streamline (MMsFVSL) method, are presented for 2-D problems. Several test
cases, including both incompressible single-phase and two-phase flow are investigated in which
the obtained results show that the MMsFVSL method has a good accuracy with a high speed-up
factor to reduce the total CPU time in the simulation process. Consequently, the MMsFVSL
method offers a significantly effcient simulation algorithm capable of direct simulation for high
resolution geological models.