Gas Processing / Compression Plants

Natural gas processing and compression facilities enable gas production to reach markets. A mid-sized gas plant (e.g. ~200 MMscf/d capacity) can easily represent >$1 million of gas sales per day (at ~$5 per Mcf, plus NGL value).

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Unfortunately, gas plant projects often miss schedules – an Independent Project Analysis study found gas plants miss schedule targets by ~30% on average (i.e. significant late delivery).

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Typical project timelines are on the order of 1.5–2 years, so a 30% slip is many months of delay.

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Globally, roughly 10–20 gas processing projects (>$100M) are executed per year given the expansion of gas production.

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Assuming an average delay of a few hundred days, the lost revenue (from gas not processed and sold) adds up to a few billion USD annually.

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Daily Opportunity Loss (USD)

≈ $1 million per day (per plant, ~200 MMcf/d gas at ~$5/MMBtu + liquids) – actual value varies with gas/NGL prices

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Projects per Year (global)

~15 projects/year (estimated count of major gas processing or compression projects >$100M worldwide)

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Average Delay per Project

~6–8 months delay on average (≈ 180–240 days; gas plants average ~30% schedule overrun)

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Annual Opportunity Loss (USD)

≈ $3–4 billion/year (lost gas sales globally due to processing/compression project delays)

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* If you are interested in our research and data sources, visit this link.