close
Choose Your Site
Global
Social Media
In modern oil and gas operations, nitrogen is almost as critical as the hydrocarbons themselves. From stabilizing crude oil in massive storage tanks to boosting well recovery and protecting pipelines, nitrogen quietly supports safety, uptime, and product quality in the background. For decades, many operators have relied on trucked-in liquid nitrogen or cylinders, accepting high logistics costs and unpredictable supply as “just the way it is.”
Today, onsite Nitrogen generator solutions are changing that model by allowing oil and gas companies to produce their own nitrogen at the wellhead, terminal, refinery, or offshore platform, dramatically improving reliability, safety, and lifecycle cost. Instead of being dependent on external deliveries, a properly sized onsite Nitrogen generator gives you a dedicated, 24/7 nitrogen plant integrated into your facility.
As pressure on margins, environmental compliance, and safety performance grows, more operators are reassessing how they supply nitrogen. Onsite Nitrogen generator systems based on PSA or membrane technology offer a flexible way to match purity and flow to each application, from storage tank blanketing to enhanced oil recovery and LNG handling. These systems are available as skid-mounted or containerized packages, engineered for harsh industrial environments and designed to run automatically with minimal supervision.
In this guide, we will walk through how onsite Nitrogen generator systems are used across petroleum storage and extraction, the practical problems they help solve, and how advanced gas technologies make them a strategic investment rather than just another utility line item.
The Use of Nitrogen Generators in Petroleum Products Storage Facilities
Problems Faced during Oil Extraction
The Role of Nitrogen Gas in Oil Extraction and Recovery
Other Important Nitrogen Gas Uses in the Oil and Gas Industry
Onsite Nitrogen Generators for the Oil and Gas Industry from Advanced Gas Technologies
In petroleum storage facilities, an onsite Nitrogen generator is primarily used to blanket tanks with an inert nitrogen atmosphere, which minimizes fire and explosion risk, reduces product oxidation and evaporation losses, and keeps operations running safely and continuously without relying on external nitrogen deliveries.
Storage tanks holding crude oil, gasoline, diesel, jet fuel, and other refined products all share a common risk: flammable vapors accumulate in the tank headspace. When oxygen concentration is high enough and an ignition source appears, the result can be catastrophic. By using an onsite Nitrogen generator to fill the tank headspace with nitrogen, oxygen concentration is pushed below the critical threshold, drastically reducing explosion risk.
This “blanketing” or “padding” process is not a one-time event. Every time liquid is pumped in or out, the tank’s vapor space changes. An onsite Nitrogen generator continuously provides nitrogen at a controlled pressure to maintain the protective blanket, automatically making up any gas lost through breathing, mixing, or small leaks.
Beyond safety, nitrogen blanketing with an onsite Nitrogen generator helps maintain product quality. Many petroleum products degrade when exposed to oxygen and moisture, forming gums, sludge, or off-spec color and odor. By keeping oxygen and humidity low, the Nitrogen generator extends storage life and reduces the risk of out-of-spec batches that must be reprocessed or downgraded.
Finally, storage tanks often suffer from corrosion on internal surfaces. A dry, inert nitrogen atmosphere from an onsite Nitrogen generator slows corrosion and reduces the formation of corrosive condensate, extending tank life and preventing leaks that could trigger costly environmental incidents.
When considering nitrogen for tank blanketing, operators typically compare three options: an onsite Nitrogen generator, trucked liquid nitrogen, or high-pressure cylinders. The table below summarizes key differences.
| Parameter | Onsite Nitrogen generator | Bulk liquid nitrogen deliveries | High-pressure cylinders |
|---|---|---|---|
| Supply reliability | Continuous, under your control | Depends on delivery schedule and weather | Depends on cylinder inventory and refills |
| Typical purity range | 95–99.999%, adjustable by design | Typically very high, often >99.9% | Typically high, often >99.9% |
| Operating cost over time | Lower OPEX after CAPEX investment | High recurring logistics and rental costs | Highest cost per m³ of nitrogen |
| Safety and handling | No cryogenic liquid handling, low pressure | Cryogenic handling, venting losses | Frequent cylinder changes, manual handling risk |
| Environmental impact | Reduces truck deliveries and vent losses | Regular truck traffic, boil-off losses | High transport emissions, cylinder logistics |
In many cases, once storage volumes and flow requirements are analyzed, the life-cycle cost of an onsite Nitrogen generator is significantly lower than relying on delivered nitrogen, especially in remote terminals or regions with challenging logistics. This is why more tank farms are specifying Nitrogen generator packages during revamps and new builds.
When engineering a tank blanketing system based on an onsite Nitrogen generator, several factors must be considered:
Required purity: Many storage applications operate safely at 95–99.5% nitrogen purity. Choosing the optimal purity allows the Nitrogen generator to be sized correctly and improves efficiency.
Peak and average nitrogen flow: Tanks breathe differently depending on product type, temperature swings, and filling patterns. Engineers use these data to define the capacity of the Nitrogen generator and buffer vessel.
Pressure control strategy: Blanketing valves and regulators must be integrated with the Nitrogen generator to maintain a narrow pressure window in the vapor space.
Integration with existing utilities: The Nitrogen generator relies on compressed air, power, and control signals. Correct integration ensures stable operation and simplifies maintenance.
By combining proper engineering with a robust onsite Nitrogen generator, storage operators gain a safer, more economical, and more predictable nitrogen source for their tank farms.
During oil extraction, operators face persistent challenges such as declining reservoir pressure, water and gas breakthrough, corrosion, hydrate formation, and safety risks from flammable or sour gases, all of which can be mitigated when nitrogen from an onsite Nitrogen generator is used strategically.
Oil extraction is rarely a stable, linear process. As fields mature, reservoir pressure declines, making it harder to push hydrocarbons to the surface. Water and unwanted gas phases often break through, reducing oil cut and complicating separation. These changes require more energy and more complex process control to maintain production rates.
Corrosion is another major issue. Produced fluids often contain CO₂, H₂S, chlorides, and other corrosive species that attack tubing, casings, and surface equipment. If free oxygen is present in injection or lift fluids, corrosion rates climb even higher. Using nitrogen from a Nitrogen generator to displace oxygen and create inert conditions can significantly slow these mechanisms.
Flow assurance problems also arise, especially offshore or in cold climates. Hydrates, wax, and asphaltenes can form in flowlines and risers. Nitrogen from an onsite Nitrogen generator is frequently used during start-up, shutdown, and pigging operations to dry lines, remove oxygen, and reduce the risk of hydrate formation.
Safety risks during oil extraction involve both acute and chronic scenarios. Hydrocarbon leaks, gas releases, and blowouts are the most visible threats, while long-term issues such as stress corrosion cracking or tank roof fires are quieter but equally serious. Oxygen presence in systems handling flammable fluids amplifies the severity of any incident.
By generating nitrogen on site, operators can inert equipment, purge process lines, and pressurize systems before introducing hydrocarbons. This reduces the probability of explosive atmospheres forming in process vessels, separators, and storage tanks. An onsite Nitrogen generator ensures that this protective gas is always available, even during unplanned shutdowns or emergencies, rather than relying on stored cylinders that might be depleted at the wrong moment.
Environmental concerns include fugitive emissions, produced water handling, and spills. Nitrogen from a Nitrogen generator assists in safer blowdown and depressurization sequences, during which hydrocarbon vapors can be routed to flare systems under controlled conditions. Minimizing oxygen in these systems helps maintain stable combustion and limits incomplete burning and soot formation.
From an economic perspective, operators constantly balance recovery factor, operating cost, and downtime. Reservoir pressure decline and flow assurance challenges can lead to shut-ins, reduced production, and expensive well interventions. Corrosion failures require equipment replacement and can cause extended outages.
Integrating nitrogen from a reliable Nitrogen generator into field operations supports:
Better control of reservoir pressure via nitrogen injection or gas lift
Lower corrosion rates in injection and production systems
More predictable shutdowns and restarts, reducing downtime
Over the life of a field, these benefits often outweigh the capital cost of the onsite Nitrogen generator, especially when compared to repeated nitrogen deliveries in remote locations.
Nitrogen gas supplied by an onsite Nitrogen generator plays a key role in oil extraction and recovery by maintaining reservoir pressure, improving displacement efficiency, supporting gas lift, and enabling safer cleaning, purging, and testing operations.
One of the most common enhanced oil recovery (EOR) strategies is gas injection. When natural reservoir pressure is no longer sufficient to drive oil to the surface, operators inject gas into the reservoir to maintain pressure and sweep oil toward production wells. Nitrogen generated on site using a Nitrogen generator is attractive for this purpose because it is inert, widely available from air, and non-corrosive.
Onsite Nitrogen generator systems based on PSA or membrane technology can be designed to provide the high flow rates needed for injection. Purity requirements depend on the reservoir and compatibility with existing gas; in many cases, 95–98% nitrogen purity is sufficient.
Gas lift is another application where nitrogen from a Nitrogen generator supports oil extraction. By injecting nitrogen into the production tubing, the density of the fluid column is reduced, allowing reservoir pressure to lift liquids more easily. This is particularly effective for wells with heavy crude or high water cut.
During well completions, workovers, or start-ups, wells often need to be “unloaded” of heavy completion fluids before stable production can begin. High-pressure nitrogen from an onsite Nitrogen generator can be used in place of compressed air or other gases, avoiding oxygen-related safety and corrosion issues. This makes well unloading safer and more controllable, especially in sour fields where H₂S is present.
Beyond the reservoir itself, nitrogen from a Nitrogen generator is frequently used in surface operations associated with oil extraction:
Pipeline pigging and drying: After cleaning operations, nitrogen is used to dry lines and push pigs, ensuring moisture and oxygen are removed before hydrocarbons are reintroduced.
Pressure testing: Nitrogen allows safe pressure testing of new or repaired lines, vessels, and well equipment. As an inert gas, it avoids the risks tied to using air or hydrocarbon gas for tests.
Inerting during maintenance: Before hot work or confined space entry, nitrogen from a Nitrogen generator can purge and inert equipment, helping to meet strict safety standards.
In all these cases, the key advantage of an onsite Nitrogen generator is not just gas availability but controllability. Operators can adjust purity, pressure, and flow to match the precise needs of each operation, something that is much harder to achieve when relying on delivered nitrogen alone.
Beyond extraction and storage, nitrogen from an onsite Nitrogen generator is widely used in the oil and gas industry for pipeline purging, leak testing, LNG and cryogenic processes, catalyst protection, and maintaining inert atmospheres in refineries and petrochemical plants.
Whenever new pipelines are commissioned or existing ones are taken out of service, they must be purged of air and moisture before hydrocarbons flow. Using an onsite Nitrogen generator, operators can perform controlled purging sequences, displacing air with nitrogen from one end to the other.
This approach reduces explosion risk, prevents internal corrosion, and supports smoother start-up. Because the Nitrogen generator is on site, purging can be performed at the optimal speed and repeated as needed, without waiting for additional nitrogen trucks.
In downstream and midstream facilities, nitrogen plays a central role in safety and process control:
Inerting reactors and columns: Many refinery units and petrochemical reactors require oxygen-free atmospheres during start-up, shutdown, or normal operation. Nitrogen from a Nitrogen generator is ideal for these inerting tasks.
Catalyst protection: Sensitive catalysts can be poisoned by oxygen or moisture; nitrogen helps keep them in a stable environment when units are offline or in transition.
LNG and cryogenic systems: Nitrogen is used as a cooling medium, purge gas, and buffer gas during liquefaction, storage, and transfer of LNG and other cryogenic fluids. Onsite Nitrogen generator systems integrated with cryogenic processes help maintain stable operation.
An onsite Nitrogen generator also supports flare systems, vapor recovery units, and storage tank vent systems, where nitrogen is often used to balance pressure or strip oxygen from process streams.
Because nitrogen is non-flammable and inert under most conditions, it is an essential tool in fire and explosion prevention strategies. Common uses of nitrogen from onsite Nitrogen generator systems include:
Maintaining inert atmospheres in enclosed process areas
Pressurizing cable tunnels or electrical rooms with nitrogen to limit oxygen and dust
Assisting fire suppression systems that rely on oxygen reduction in protected spaces
By embedding Nitrogen generator packages into overall fire and gas safety systems, operators gain a powerful additional layer of protection.
Onsite Nitrogen generator solutions for the oil and gas industry are typically engineered PSA or membrane systems, skid-mounted or containerized, designed to deliver the required nitrogen purity, pressure, and flow with high reliability in harsh environments while reducing long-term gas costs.
Most onsite Nitrogen generator solutions for oil and gas use one of two separation technologies:
Pressure Swing Adsorption (PSA): Compressed air passes through adsorber vessels filled with carbon molecular sieve. Oxygen and trace gases are adsorbed at high pressure while nitrogen passes through. By cycling between adsorption and regeneration, a PSA Nitrogen generator produces a continuous stream of nitrogen, often in the 95–99.999% purity range.
Membrane separation: Compressed air flows through hollow fiber membranes that allow faster gases like oxygen, CO₂, and water vapor to permeate out, leaving a nitrogen-enriched stream. Membrane Nitrogen generator systems are compact and simple, ideal for moderate purity requirements and offshore or remote use.
Manufacturers offer modular, multi-tower PSA Nitrogen generator units, skid systems, and containerized nitrogen stations that integrate compressors, dryers, filters, and control systems into a single package.
Advanced gas technologies have led to Nitrogen generator designs specifically optimized for oil and gas:
Wide purity range: Adjustable from about 95% for blanketing and purging up to 99.999% for critical applications.
High flow capacity: Scalable from small skids for individual well pads to large containerized stations feeding entire production facilities.
Rugged construction: Skids and containers designed for outdoor, offshore, or desert environments, including corrosion-resistant materials and weatherproof enclosures.
Integrated air treatment: Oil-free or oil-lubricated compressors, dryers, and multi-stage filtration ensure clean feed air to the Nitrogen generator, extending media life.
Automated control: PLC-based controls with remote monitoring, alarms, and data logging make it easy to manage the Nitrogen generator as part of the facility’s DCS or SCADA network.
These features allow a Nitrogen generator to become a robust utility asset, not a fragile piece of lab equipment.
From a business perspective, the case for an onsite Nitrogen generator can be summarized in three dimensions: cost, reliability, and flexibility.
Cost: While there is an upfront capital cost, the per-unit cost of nitrogen typically decreases over time compared to trucked liquid nitrogen or cylinders, especially at higher consumption levels.
Reliability: A properly maintained Nitrogen generator offers 24/7 availability. There is no waiting for deliveries, and no risk of running out of cylinders in a critical moment.
Flexibility: The Nitrogen generator can be tuned to deliver different purities and flows depending on operational needs, which is difficult when buying fixed-spec nitrogen from external suppliers.
The table below summarizes typical considerations when deciding to invest in onsite Nitrogen generator capacity.
| Factor | Onsite Nitrogen generator | Delivered nitrogen |
|---|---|---|
| Upfront investment | Higher CAPEX, engineered system | Low, mainly connection points |
| Long-term gas cost | Lower cost per m³ at medium to high consumption | High variable cost, linked to market and logistics |
| Supply security | Under operator’s control, dependent on utility uptime | Dependent on vendor, truck access, and contracts |
| Operational flexibility | Easy to change purity, pressure, and flow setpoints | Fixed by supplier spec, limited flexibility |
| Environmental footprint | Reduced transport and vent losses | Continuous truck traffic and boil-off losses |
For oil and gas companies with sustained nitrogen demand across storage, extraction, and processing, integrating an onsite Nitrogen generator is increasingly seen as a strategic move that supports safety, sustainability, and profitability simultaneously.
The oil and gas industry has always depended on nitrogen, but how that nitrogen is supplied is undergoing a fundamental shift. Instead of relying on external deliveries that tie critical operations to logistics, more operators are installing onsite Nitrogen generator systems that transform nitrogen from a purchased commodity into an in-house utility.
Across the value chain – from storage tank blanketing and pipeline purging to well stimulation and LNG handling – nitrogen from a well-designed Nitrogen generator improves safety, reduces corrosion and downtime, and offers predictable, controllable supply. By understanding the specific roles nitrogen plays in each application, and by selecting Nitrogen generator technologies that match purity, flow, and environmental conditions, oil and gas companies can build a more resilient and efficient nitrogen strategy for the long term.
