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Gas Processing

Financial glossary · plain-language definition · Specialized Investing

The step where raw natural gas straight from the wellhead is run through a processing plant to strip out heavier hydrocarbons -- natural gas liquids (NGLs) like ethane, propane, and butane -- leaving pipeline-quality dry methane. Processing volumes (again in Bcf/d or BBtu/d) measure how much raw gas a midstream company treated, and the business earns fees on both the processing and the resulting NGLs. It sits between gathering (collecting raw gas from wells) and transportation (moving finished gas to market), and processing throughput is a key indicator of activity in the wet-gas basins where the NGL economics are richest.

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