EBF 301
Global Finance for the Earth, Energy, and Materials Industries

Processing and Natural Gas Liquids (NGLs)

Graphic illustration showing steps of process to get raw products from wells to markets with the distribution phase highlighted. Described in text below
Figure 3. Processing and Refining

Natural gas that is going to be injected into the pipeline has to meet the pipeline specifications and has to have more than 98% methane. The second step in the logistics chain for natural gas is the processing of the produced gas. Processing is done for two main purposes: 1) removing other heavy hydrocarbons and removing the contaminations. Other extracted hydrocarbons, natural gas liquids (NGLs) and condensate, are marketable and can be sold.

The following lecture explains the refining and processing of natural gas. The second section of the lecture focuses on the NGLs, their applications, and their market.

Key Learning Points for the Mini-Lecture: Processing and NGLs

While watching the Mini-Lecture, keep in mind the following key points and questions:

  • Produced natural gas has to be processed and purified to meet the natural gas pipeline specifications.
  • Removing heavy hydrocarbons from natural gas has to be done to protect the burner tip from volatile fuel.
  • Produced NGL’s are marketable products.
  • Water, sulfur content, carbon dioxide, and nitrogen have to be removed from natural gas. 
  • NGLs include ethane, propane, butane, pentanes, and natural gasoline.
EBF 301 Lesson 6 Processing & NGls
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Tom Seng, John A. Dutton e-Education Institute