Midstream Information
The petroleum industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations include elements of traditional upstream and downstream business.
The midstream gas business starts at the gathering system. The gathering system is collecting wet natural gas from the well heads and transports it to a gas processing plant. A gathering system can range from a small system where gas is processed close to the well head, to a system that consists of thousands of miles of small-diameter, low pressure pipes collecting from many hundred wells. At the gas processing plant methane (a.k.a. dry natural gas) is separated from the wet natural gas, leaving natural gas liquids as a by-product. NGLs are heavier elements of the wet natural gas, these include ethane, propane, butane, isobutane, and other condensates. The midstream companies makes money by fractionating, transporting and marketing these natural gas liquids. Source: NaturalGas.org
Natural Gas Liquids (NGL) should not be confused with Liquified Natural Gas (LNG) which is methane condensed into a liquid at close to atmospheric pressure .
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