Gas Value Chain
The natural gas value chain represents an integrated process, comprising of the upstream, midstream and downstream.
The upstream or the exploration and production (E&P) sector is responsible for the discovery of subs-surface onshore or offshore gas fields, drilling of exploratory and appraisal wells, field development, and extraction/production of the natural gas to the surface
The midstream involves the transportation, storage and trade of natural gas via the pipeline or in the form of liquefied natural gas (LNG).
The downstream sector is responsible for the processing of raw natural gas. It also includes the selling and distribution of processed natural gas through the natural gas distribution companies by delivering it to respective final consumers: industrial, commercial and private households.
The downstream sector is responsible for the marketing and distribution of processed natural gas through the natural gas distribution companies by delivering it to respective final consumers: power generation, industrial, and residential households
Source: GECF Secretariat
The natural gas market is very dynamic and requires liquidity, flexibility and transparency for it to function effectively. It, therefore, needs multiple supply sources, multiple users and a comprehensive infrastructure for transmission and distribution. The natural gas market is highly developed in the U.S., Europe, Eurasia and the Asia Pacific region.