Table of Contents
Introduction
Understanding how gas is produced is essential to optimize its use and minimize environmental impacts. Natural gas is one of the main sources of energy used in the world. Its production requires a series of processes ranging from its formation in subway reservoirs to its distribution to end users.
In this article, we will explore each of these phases, detailing the methods and technologies employed in production, as well as a summary of the impact of gas in the current energy context.
How is gas made? Its formation and chemical composition
Geological origin
Gas is formed from the decomposition of organic matter buried under sediments for millions of years. Through the process of catagenesis, heat and pressure transform this matter into gaseous hydrocarbons. Depending on the temperature, different types of hydrocarbons are generated: at low temperatures, petroleum; at higher temperatures, methane gas (CH₄), the main component of natural gas.
Chemical composition and industrial applications of methane gas
Methane gas represents between 70% and 90% of the composition of natural gas; therefore, it represents an efficient energy source with lower environmental impact compared to other fossil fuels. In addition, it may contain other hydrocarbons in smaller proportions, such as:
- Ethane (C₂H₆)
- Propane (C₃H₈)
- Butane (C₄H₁₀)
These compounds can be separated in the refining process and used for the production of liquefied petroleum gas (LPG) and other derivatives.
Methane gas and its industrial applications
Methane, the main component of natural gas, plays a key role in various industrial applications that drive economic and social development. Some of its main utilities include:
- Fertilizer production: It is used as a raw material in the production of ammonia, essential for the manufacture of nitrogen fertilizers that strengthen agricultural productivity.
- Chemical production: It is used in the synthesis of methanol and other key organic compounds in the chemical industry.
- Electricity generation: It is widely used in power plants due to its efficiency and lower pollutant emissions compared to other fossil fuels.
In addition, innovative projects are being developed to harness methane from non-conventional sources. An example of this is the plant in Vilches, Spain, which will convert pig excrement and other organic waste into biomethane, a renewable fuel. These types of initiatives not only provide a sustainable energy source, but also promote the circular economy by reusing agro-industrial waste.
How is gas made? Exploration and reservoir location
To identify gas reservoirs, geophysical and geological techniques are used to evaluate the subsurface structure.
2D and 3D seismic
This technology uses sound waves to obtain detailed images of the subsurface. This process consists of generating vibrations in the earth’s surface by means of controlled explosions or mechanical devices. The waves are transmitted through the geological layers and reflected in different materials. The data obtained are analyzed to create a three-dimensional model of the subsurface, making it possible to identify geological traps where gas may be found.
Leading companies in the sector, such as Shell and ExxonMobil, invest significantly in 3D seismic to optimize exploration and reduce risks. In addition to 3D seismic, other complementary techniques such as 2D seismic, gravimetry and magnetometry are used to help detect variations in rock density and composition.
Exploratory drilling
Once potential reservoir zones have been identified, drilling is performed to confirm the presence of gas and evaluate its potential. The data obtained from these drillings are crucial to determine the commercial viability of the reservoir. The drilling of the well can be:
- Vertical: Directly to the reservoir.
- Directional: It deviates to reach specific areas.
- Horizontal: Increases contact with the reservoir for higher production.
These methods allow locating reservoirs with high precision, reducing exploration costs and risks, and ensuring an efficient use of energy resources.
Natural gas extraction processes
Gas extraction depends on the type of reservoir, differentiated into conventional and unconventional, depending on the ease with which the gas flows to the surface.
Conventional reservoirs: Natural flow
In these reservoirs, gas is found in porous and permeable formations, allowing it to flow naturally through drilled wells due to reservoir pressure. This method is simpler and more economical, as it requires little additional intervention to extract the gas.
Unconventional reservoirs
When gas is trapped in low permeability geological formations, advanced techniques are needed for its extraction:
- Hydraulic fracturing (fracking): Consists of injecting a mixture of water, sand and chemicals at high pressure to fracture the rock and release the gas trapped inside. This method has boosted shale gas production, especially in countries such as the United States.
- Horizontal drilling: Used to expand access to areas with gas accumulations, increasing extraction efficiency and optimizing production.
To better understand how natural gas is extracted and the role of drilling technology in this process, we invite you to watch this video from JAES company. It explains how methane and other components of natural gas are separated from underground to final processing.

Gas treatment prior to distribution
Gas extracted from underground contains impurities that must be removed before distribution and consumption. In a processing plant, the gas passes through several stages to ensure its quality and safety.
Water and contaminant removal
The gas usually contains water, carbon dioxide, sulfur and heavy hydrocarbons. To remove them, separators and chemical absorbents are used, avoiding problems such as corrosion and the formation of hydrates that could clog pipelines.
Desulfurization
Sulfur and its compounds, such as hydrogen sulfide (H₂S), are highly corrosive and can generate polluting emissions. Through chemical processes such as absorption with amines or conversion to elemental sulfur, these compounds are removed, improving gas quality.
Liquefaction
Liquefied natural gas is gas that has undergone a liquefaction process where it is cooled to -162 °C (-260 °F). This extreme cooling allows the gas to be converted into a colorless, odorless liquid, reducing its volume by approximately 600 times compared to its gaseous state. Thanks to this transformation, LNG can be stored and transported more efficiently over long distances, allowing it to be exported to international markets.
Liquefaction (LNG) is carried out in specialized plants and comprises four fundamental stages. First, pretreatment is carried out, where impurities such as water, mercury and other compounds that may affect the efficiency of the process are removed. Then, acid gas elimination and dehydration are carried out, in which substances such as carbon dioxide (CO₂) and hydrogen sulfide (H₂S) are removed, avoiding corrosion and operational problems.
Subsequently, the gas undergoes fractionation, where heavy hydrocarbons such as butane and propane, which can interfere with LNG refrigeration, are removed. Finally, in the last stage of the liquefaction process (LNG), the gas is cooled to low temperatures through refrigeration cycles with hydrocarbon or nitrogen mixtures, transforming it into a liquid.
Each of these phases requires accurate and reliable process control, as any failure could disrupt production and affect LNG loading and transportation. Liquefaction (LNG) efficiency is critical to guarantee continuous operation, ensuring that the liquefied gas arrives in optimal condition at its final destination, whether for industrial use, power generation or domestic supply.
Natural gas transportation and distribution
Gas is transported through different infrastructures that guarantee its efficient and safe supply worldwide. There are three main methods: pipelines, methane tankers and distribution networks.
Pipelines are networks of pipes that move gas over long distances, both onshore and offshore. This method is the most economical and safest for large volumes. A notable example is Nord Stream, which connects Russia to Europe via the Baltic Sea, playing a key role in European energy supply.
When pipeline transport is not feasible, LNG carriers, designed to carry liquefied gas (LNG) to distant markets, are used. In this process, the gas is cooled to -162 °C to reduce its volume, facilitating its transport in liquid form. This system enables global gas trade, ensuring supply in regions without access to pipelines.
Finally, distribution networks connect the main gas pipeline to final consumers, such as homes, industries and power plants. These networks guarantee a continuous and secure supply by regulating the gas pressure before delivery.
These three systems allow gas to reach users efficiently, boosting global energy development.
Natural Gas in the current energy context
Gas continues to be a key player in the global energy landscape. Between 2024 and 2025, significant trends have been observed in its production and distribution, marked by strategic investments, fluctuations in demand and geopolitical challenges.
- Investment and production in latin america
- Bolivia: State-owned YPFB, along with other operators, announced an investment of US$703.7 million in oil projects by 2025, with 72% going to exploration and production. However, gas production is expected to decline to 29.53 million cubic meters per day, compared to a peak of 45 mm³/d in 2021.
- Colombia: The country is facing significant increases in gas prices due to the lack of major reserve discoveries in the last two decades. Vanti, the largest distributor, announced a 36% increase in tariffs, reflecting supply shortages and increasing dependence on imports.
- Global demand projections
- Shell projects a 60% increase in global liquefied gas (LNG) demand by 2040, driven mainly by economic growth in Asia and decarbonization efforts in heavy industries and transportation. However, a gap between supply and demand is anticipated, which could lead to challenges in market balance and price stability.
- Infrastructure and distribution
- Argentina: Transportadora de Gas del Sur (TGS) is investing US$500 million in the construction of a 182 kilometer gas pipeline in Vaca Muerta, with the capacity to transport up to 60 million cubic meters per day. TGS also operates and maintains the President Néstor Kirchner Gas Pipeline, which in its first stage will transport 11 million cubic meters per day from Vaca Muerta to Buenos Aires, seeking to reduce dependence on imports and strengthen energy sovereignty.
- Geopolitical and market challenges
- Europe faces increased volatility in the gas market due to a growing dependence on LNG, especially after the reduction of pipeline imports from Russia. Competition with Asian markets and factors such as project delays and increases in industrial demand could exacerbate the situation, affecting price stability and supply.
Conclusion
How gas is produced is a process that begins underground, where a mixture of hydrocarbons composed of carbon and hydrogen atoms, known as natural gas, is found. Its origin comes from the anaerobic decomposition (without oxygen) of plant and animal remains over millions of years. To extract it, advanced geological studies, surveys and specialized analyses are required to identify and exploit these deposits efficiently.
The application of advanced extraction, processing and transportation technologies has consolidated natural gas as a key energy source in the global energy matrix. Its lower environmental impact compared to other fossil fuels makes it a viable alternative in the transition to a more sustainable future.
However, the gas industry faces significant challenges, such as reducing methane leakage and developing safer and more efficient infrastructures. To ensure its sustainability and reliability in supplying homes, industries and the energy sector, it is essential to continue innovating in production and distribution methods that minimize its environmental impact.
Analyze the natural gas process and its importance in global energy!
References
- International Energy Agency (IEA) – Natural Gas Production Reports
- U.S. Energy Commission (EIA) – Extraction Statistics and Technologies
- Natural Gas Exploration and Production Companies – Technical Information on Methods and Processes
- Investments and production in Latin America: (Reuters.com, Elpais.com)
- Geopolitical and Market Challenges: (Reuters.com)