Resource
What does Midstream mean?
Midstream connects the upstream to the downstream, and essentially involves everything between the wellhead and the delivery of gas to the customer. This includes gathering and processing facilities, main trunkline pipelines, and smaller lateral lines. Note that midstream does not include local distribution company (LDC) systems. Midstream also includes virtual pipeline companies, or small scale LNG, which is a growing sector in North America. Some industry pundits also include large scale LNG liquefaction plants as part of the midstream sector, since the ultimate end-user of the gas is located overseas. However, because LNG has different physical properties and trades in a more nuanced way than natural gas, we believe it is more appropriate to include such facilities in the downstream portion of the value chain.