National Overview

Processing Capacity

Processing plants are typically clustered close to major producing areas, with a high number of plants close to the Federal Gulf of Mexico offshore and the Rocky Mountain production areas (Figure 1). In terms of both the number of plants and processing capacity, about half of these plants are concentrated in the States along the Gulf of Mexico. Gulf States have been some of the most prolific natural gas producing areas.

U.S. natural gas processing capacity showed a net increase of about 12 percent between 2004 and 2009 (not including the State of Alaska), with the largest increase occurring in Texas, where processing capacity rose by more than 4 Bcf per day. In fact, increases in Texas’ processing capacity accounted for 57 percent of the total lower 48 States’ capacity increase of 7.1 Bcf per day between 2004 and 2009. However, seven States saw their total capacities fall since 2004, including Kansas, New Mexico, California, and Illinois. Processing capacity expansion coincided with pipeline capacity additions as well as production expansions. While the majority of States recorded increases in processing capacity, a few States stand out in particular. In addition to the substantial expansions in Texas, new capacity additions occurred in the Rocky Mountain States, especially in Colorado where natural gas processing capacity more than doubled between 2004 and 2009. Significant increases also occurred in Arkansas, Utah, and Wyoming.

As total capacity rose in the country, the number of processing plants fell in 15 States compared with 2004. At least 34 plants were idled and/or dismantled over the last few years, as new plants were added and old, less efficient plants were shut down. In Arkansas, where the processing capacity increased tenfold, the number of plants operating in that State decreased by three.

As of 2009, 493 processing plants operated in the United States, with a combined processing capacity of 77.5 Bcf per day (Table 1). The vast majority of these plants were located in producing areas of the country, including Alaska, the Rocky Mountain region, and the States along the Gulf of Mexico. In terms of both capacity and number of plants, Texas and Louisiana accounted for nearly half of all U.S. capacity and plants. Alaska, which was not included in previous EIA analyses, accounted for the third-highest processing capacity of 9.4 Bcf per day. Although Texas and Louisiana continue to account for the largest portion of U.S. processing capacity, other States have increased their capacity and thus their rankings since 2004 as new market factors influence plant expansions. These include the development of new production areas as well as technology improvements in natural gas processing, leading to construction of more efficient plants compared to those constructed in decades past.

More than half of all plants operating in the United States in 2009 are considered “small,” with processing capacity of up to 50 MMcf per day. Although these plants numbered 270, their combined processing capacity totaled 4.5 Bcf per day or about 6 percent. Larger plants (those over 1,200 MMcf per day), although few, accounted for about 31 percent of total processing capacity, totaling 23.6 Bcf per day (Figure 2). The largest operating plants are located in Alaska, Louisiana, and Kansas. Appendix A provides a more detailed regional analysis of plant locations and capacities.  

Table 1. Natural Gas Processing Plant Capacity by State
	Natural Gas Processing Capacity (Million Cubic Feet per Day)		Number of Natural Gas Plants		Average Plant Capacity (Million Cubic Feet per Day)		Change Between 2004 and 2009
State	2009	Percent of U.S. Total	2009	Percent of U.S. Total	2004	2009	Capacity (Percent)	Number of Plants
Texas	19,740	25.5	163	33.1	95	121	24.7	-3
Louisiana	18,535	23.9	60	12.2	271	309	12.3	-1
Wyoming	7,273	9.4	37	7.5	154	197	5.1	-8
Colorado	3,791	4.9	44	8.9	49	86	81.1	1
Oklahoma	3,740	4.8	58	11.8	58	64	8.8	-1
New Mexico	3,022	3.9	24	4.9	137	126	-11.8	-1
Mississippi	2,273	2.9	4	0.8	262	568	44.6	-2
Illinois	2,102	2.7	2	0.4	1101	1,051	-4.6	0
Kansas	1,250	1.6	6	1.2	353	208	-64.6	-4
Alabama	1,248	1.6	12	2.4	87	104	-4.7	-3
Utah	1,185	1.5	12	2.4	61	99	22.2	-4
Michigan	977	1.3	10	2.0	30	98	102.2	-6
California	876	1.1	20	4.1	43	44	-15.5	-4
Arkansas	710	0.9	4	0.8	10	178	959.7	-3
West Virginia	463	0.6	7	1.4	58	66	0.7	-1
Kentucky	288	0.4	5	1.0	51	58	87.0	2
North Dakota	196	0.3	7	1.4	28	28	-11.7	-1
Montana	165	0.2	5	1.0	44	33	23.7	2
Florida	90	0.1	1	0.2	90	90	0.0	0
Pennsylvania	52	0.1	7	1.4	7	7	-16.1	-2
Tennessee	25	0.0	1	0.2	N/A	25	N/A	N/A
Ohio	N/A	N/A	N/A	N/A	8	N/A	N/A	N/A
Total Lower 48	68,000	87.8	489	99.2	114	139	28.0	-34
Alaska	9,449	12.2	4	0.8	N/A	2,362	N/A	N/A
TOTAL U.S.	77,449	100.0	493	100	114	157	28.0	-34

Note: EIA collected processing plant data on Form EIA-757 from 22 States, which are presented in the above table for 2009. The 2004 data, however, also included the State of Ohio, but not the State of Alaska, which is included in the 2009 data.
Source: 2009 data: Energy Information Administration, Office of Oil and Gas, Form EIA-757, Natural Gas Processing Survey. 2004 data: Energy Information Administration, Office of Oil and Gas, GasTran Information System, Natural Gas Processing Plant Database, compiled from data collected on Form EIA-64A, Form EIA-816, PentaSul Inc’s LPG Almanac, and various other sources.

Figure 2. Total Processing Plant Capacity and Plant Count by Plant Capacity Range, 2009


Source: 2009 data: Energy Information Administration, Office of Oil and Gas. Processing plant count and capacities are based on data collected on Form EIA-757, Natural Gas Processing Survey, Schedule A.