CHAPTER V

MIDSTREAM OIL AND GAS SECTOR

The ‘midstream’ segment of the oil and
natural gas industry refers to anything
required to transport and store crude oil
and natural gas before they are refined and
processed into fuels and key elements
needed to make a very long list of products
we use every day.
Midstream operations are designed to
transport hydrocarbons from
upstream production operations to
downstream refining and processing
operations. Many modes of
transportation are used to transport
oil and gas. They include pipelines,
tanker trucks and ships, and trains.
The mode of transport depends on
such factors as safety, distance, and
state of the fluid. For example,
pipelines are often the first choice for
transportation.
Laying pipelines is a construction project
that requires specialized heavy equipment.
Pipelines are used to transport fluids both
onshore and offshore. The transport
distance can be a few miles to thousands
of miles. Pipelines that transport fluids
over long distances usually need
compressor stations or pump stations to
keep fluids moving.
Pipelines that transport
fluids over long distances
usually need compressor
stations or pump stations
to keep fluids moving.
Gas compression can
also maximize use of space
in the pipeline by
increasing the density of
gas flowing through the
pipeline. The metal wall
helps mitigate the amount
of noise that reaches
neighborhoods on the
other side of the wall.
Hostile environments such as the
desert, Arctic tundra, and North Sea
increase the difficulty and cost of
constructing a pipeline. Maintenance is
needed to prevent pipeline leaks.
Pipelines can leak if they crack or burst.
Hydrocarbon leaks are harmful to the
environment and can impact
community support for the pipeline.
Pipeline maintenance helps keep fluids
moving efficiently. For example, gas
flowing in a pipeline can contain water
dissolved in the gas phase. Pressure and
temperature conditions change over the
length of the pipeline. Under some
conditions, water can drop out of the gas
phase and form a separate water phase
that affects gas flow along the pipeline.
Piston like scrubbing devices called
“pigs” are run through pipelines to
displace liquid phases to exit points along
the pipeline route. Pipeline pigs are
driven by the flow of fluids in the
pipeline. They remove unwanted debris
such as water and residual wax inside the
pipeline. Intelligent pigs contain sensors
that can be used to inspect the internal
pipeline walls and identify possible
problems such as corrosion.
Pipelines often pass through multiple
jurisdictions. The route may be within a nation
or cross-national borders. This introduces a
geopolitical component to midstream
operations. It can also require security in
regions of political instability.

Other oil and gas transportation modes include

trucks, trains, barges, and tankers. Trucking is
the most versatile form of transportation on
land because trucks can travel to virtually any
land- based destination. Transportation by rail
can be a cost effective and efficient mode of
transporting large volumes of oil. Barges and
tankers transport oil and gas over bodies of
water ranging from rivers to oceans.
 Midstream operations and processes
include the following:

1. Gathering: The gathering process 2. Transportation: Oil and gas are

employs narrow, low pressure pipelines transported to processing facilities, and
to connect oil and gas producing wells from there to end users, by pipeline,
to larger, long haul pipelines or tanker/barge, truck, and rail.
processing facilities
3. Storage: Midstream service providers
provide storage facilities at terminals
throughout the oil and gas distribution
systems These facilities are most often
located near refining and processing
facilities and are connected to pipeline
systems to facilitate shipment when product
demand must be met

4. Technological applications: Midstream

service providers apply technological
solutions to improve efficiency during
midstream processes. Technology can be
used during compression of fuels to ease
flow through pipelines; to better detect
leaks in pipelines