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Natural Gas Supply Chain Vs 2

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8 I Oil and Natural Gas Supply Chains

America’s Energy Revolution


Natural Gas Supply Chain

Processing Plant Hubs


Processing plants clean raw natural gas by separating impurities and the various Natural gas hubs are locations where natural gas is priced and traded throughout the
hydrocarbons and fluids from pure natural gas, producing what is known as ‘pipeline country. These ‘market hubs’ are located at the intersection of major pipeline systems.
quality’ dry natural gas, also known as methane. A fully operational processing plant delivers The principal hub within the United States is the Henry Hub in Louisiana.
pipeline quality dry natural gas that can be used as fuel by residential, commercial, and
industrial consumers.
Fractionator
The fractionation process is the breaking down of natural gas liquids (NGLs) into their
Pipeline base components in order to be useful, and occurs at a fractionator facility. Common
The US natural gas pipeline network is a highly integrated transmission and distribution base components of NGLs include ethane, propane, t and butane. Fractionation occurs in
grid that can transport natural gas to and from nearly any location in the contiguous stages, separating each base component from the stream of mixed NGLs, one-by-one.
United States. Pipelines can be characterized as interstate or intrastate. Interstate pipelines
are long-distance, high-capacity pipelines that transport natural gas throughout the nation.
Intrastate pipelines link natural gas producers to local markets as well as the interstate pipeline Liquefaction
system. Liquefaction is the physical conversion of a gas into a liquid state. Liquefaction occurs
at normal atmospheric pressure by super-cooling the natural gas to -260°F, creating
liquefied natural gas (LNG). Prior to liquefaction, certain unwanted components, such as dust,
Regasification acid gases, helium, water, and heavy hydrocarbons, are removed as they can cause difficulty
Regasification is the process of transforming liquefied natural gas (LNG) into a gaseous downstream.
state through vaporization, preparing it for use. This process occurs at regasification
plants, where the temperature of LNG is increased, typically through seawater vaporizers,
transforming it into gas. Liquefied Natural Gas Shipping
Liquefied natural gas (LNG) shipping provides a low-cost, safe, and environmentally
responsible method to move large volumes of product long distances. LNG is
Storage transported in specially-built tanks on double-hulled ships. LNG carriers are among the safest
Natural gas is stored in three principal types of large underground storage systems: in the shipping industry, having made more than 100,000 voyages without major incident.
depleted natural gas reservoirs, aquifers, and salt caverns. More than 80% of natural
gas storage capability consists of depleted reservoirs, which are relatively easy to convert to
storage facilities after use and are typically located near consumption centers and existing
pipeline systems. Natural gas can also be stored as liquefied natural gas (LNG), which reduces
its volume to 1/600th of the volume of natural gas, making it more efficient and practical to
store and transport.

© Copyright 2015 – American Petroleum Institute (API), all rights reserved. Digital Media | DM2015-036 | 03.10

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