Midstream assets refer to the infrastructure and facilities that play a critical role in the transportation, storage, and processing of oil, natural gas, and other energy products. These assets serve as a crucial link between the upstream segment, which involves the exploration and production of energy resources, and the downstream segment, which encompasses the distribution and retail sale to end consumers.
Key midstream assets include:
– Pipelines: A network of pipes used to transport crude oil, natural gas, and refined petroleum products over long distances, either on land (e.g., cross-country pipelines) or underwater (e.g., offshore pipelines).
– Storage Facilities: These structures are designed to store large quantities of energy commodities, such as oil storage tanks or natural gas storage caverns, ensuring a stable supply of resources and helping to manage price volatility.
– Processing Plants: Facilities like natural gas processing plants or fractionation units are vital for transforming raw natural gas into marketable products (methane, ethane, propane, etc.) by removing impurities and separating the gas into its constituent components.
– Rail terminals, trucking, and barge fleets: Additional modes of energy commodity transportation, particularly when pipeline infrastructure is unavailable or unsuitable.
– Export terminals: These facilities enable the transfer of energy resources to international markets, including liquefied natural gas (LNG) export terminals and oil tanker loading docks.
Owning and operating midstream assets can offer stable fee-based revenues generated from long-term contracts, thus providing a level of insulation from the volatile commodity price fluctuations that affect the upstream and downstream segments.
For further information on midstream assets, you can visit the following websites:
1. U.S. Energy Information Administration (EIA) – The EIA provides comprehensive data, analyses, and educational material on the energy industry, including the role and function of midstream assets: https://www.eia.gov rel="nofollow">https://www.eia.gov
2. Interstate Natural Gas Association of America (INGAA) – INGAA is a trade organization that advocates for regulatory and legislative positions important to the natural gas pipeline industry in North America. It offers insights into infrastructure and various midstream topics: https://www.ingaa.org rel="nofollow">https://www.ingaa.org
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