Natural gas is a critical and growing component of energy consumption in the United States. The U.S. natural gas pipeline grid is the link between upstream exploration and production activities and downstream end-use markets. This network is a highly integrated gathering, transmission and distribution grid that transports natural gas from producing regions to customers such as local distribution companies (“LDCs”), industrial users and electric generation facilities. Companies generate revenues at various stages within this value chain by gathering, processing, treating, fractionating, transporting, storing and marketing natural gas and natural gas liquids (“NGLs”).
The following diagram illustrates various components of the natural gas value chain:
Azure Midstream is an industry leader in working with producers to get their production to market by providing comprehensive wellhead and pipeline connection project management. Our engineering and construction group works closely with our customers to develop the most effective and efficient interconnection and pipeline plan to meet our customers’ need for current and future gathering services.
Gathering, Compression, and Treating
At the initial stages of the midstream value chain, a network of pipes known as gathering systems directly connect to wellheads in the production area. Azure Midstream’s gathering systems transport natural gas from the wellhead to downstream pipelines or a central location for treating and processing.
Natural gas compression is a mechanical process in which a volume of natural gas at a given pressure is compressed to a desired higher pressure, which enables more efficient gathering and delivery into a higher pressure processing plant or pipeline. Azure Midstream uses field compression to allow our gathering systems to operate at a lower pressure or provide sufficient discharge pressure to deliver natural gas into a higher pressure system. Compression is also used in the transportation of natural gas to support the movement of gas across pipeline systems and in storage to enhance withdrawal and injection capability.
Treating and dehydration involves the removal of impurities such as water, carbon dioxide and hydrogen sulfide that may be present when natural gas is produced at the wellhead. Azure Midstream removes these impurities so that the natural gas can meet required specifications for transportation on long-haul intrastate and interstate pipelines and ultimate consumption.