Midstream 101

The midstream segment is separated from upstream and downstream in most oil
companies because it is considered a low risk, regulated type of business. It does not fit the
risk profile or asset complexity of the other segments of the oil and gas industry.Activities
can include processing, storage and transportation of crude oil and natural gas. In most cases,
oil and gas reserves are not located in the same geographic location as refining assets and
major consumption regions. Transportation is a big part of midstream activities and can
include using pipelines, trucking fleets, tanker ships, and rail cars.

Oil and Gas Processing

Processing oil and gas liquids into marketable products is the beginning of the
midstream segment of the business. These products then continue into the refining
processing portion of the downstream segment.

Field processing is the first phase of oil and gas processing starting in the onshore or
offshore oil or gas production field.

Here, surface facilities are designed and installed that:

 Measure the production rate of the oil, gas, and water that is produced from the
reservoir
 Separate the oil, gas, and water from one another
 Remove impurities to prepare the crude or gas for sale or the next process
 Temporarily store the crude or gas until it is ready to be moved to the next process

Fractionation plants, which remove natural gas liquids (NGL) from the produced oil
and gas are also a component of the midstream activities. These NGLs are used as blend
components in a refinery and used as fuel or feedstock in the manufacture of petrochemicals.

Transportation

After field processing, treated oil and gas is delivered via a complex transportation,
transmission and distribution infrastructure. Crude and refined liquids start their journey in a
spider web of small-diameter field gathering pipelines. Once accumulated, larger volumes
are transported internationally in tankers or vessels and moved along the coast or through
rivers in smaller barges. Land transportation methods include pipelines, truck and rail.
Natural gas, which flows at much higher pressure than crude oil, is most often transported in
large-diameter, high-pressure-handling pipelines called transmission lines.

Storage

a. Crude Oil
Storage facilities for crude oil and refined liquids include bulk terminals, refinery
tanks and holding tanks to get material into pipelines, or ready to be shipped on a vessel.
 Cushing, OK is the delivery point for the NYMEX/CME crude oil futures contract.
As such, it is an important storage location for traders looking to deliver oil against these
contracts. There is currently storage capacity to hold about 65 million barrels of oil at this
location (up from about 26 million in 2005).
The Strategic Petroleum Reserve (SPR) is an emergency storage of oil maintained by
the US Department of Energy. Current storage capacity is approximately 727 million barrels,
with about 695 million barrels (or 36 days consumption) in inventory. The SPR was started
in 1975 after the oil embargo of 1973-74 supply disruption.
b. Natural Gas
Because of its extremely high pressure, natural gas must be stored in underground
reservoirs until it is ready to be transported to market. Most commonly depleted gas
reservoirs are used, with salt caverns and aquifers being other storage possibilities.There is
approximately 3.5 trillion cubic feet of working gas in nearly 400 facilities in the US.

Piping Design Condition

a. Design Standard
All piping must be designed for thermal expansion under start up, operating and shut
down conditions without over stressing the piping, valves or equipments.
b. Condition
 Operating Conditions
Normal design conditions of pressure & temperature are expected to co-exist.
These usual operations include all manipulations & control functions such as
throttling, blowing, and by passing.
 Temporary Conditions
These do not include more severe temporary conditions such as those
incidentals to start up, steam out or abnormal.

REFERENSI

Anonim. 2017. What is Midstream Oil and Gas? – EKT Interactive.[ONLINE].

Available at : https://www.ektinteractive.com/what-is-midstream/.
(Accessed April 14th 2018)