Condensate
A very light liquid hydrocarbon that condenses out of natural gas. Often called lease condensate, it is priced near crude oil.
Condensate is a very light liquid hydrocarbon that drops out of the gas stream as pressure and temperature fall on the way from the reservoir to the surface. When it is separated at the lease and stored in tanks, it is called lease condensate. It looks and behaves much like a very light crude and typically carries a high API gravity.
Because it is essentially light oil, condensate is usually priced near crude — sometimes at a premium, sometimes a discount, depending on the market and how rich it is. It is different from natural gas liquids, which are recovered downstream at a processing plant rather than as a free liquid in the field.
On a royalty statement, condensate may appear as its own product line alongside oil and gas. Owners in gas-condensate plays should expect a separate sales volume and price for it, and the same post-production rules in their lease will govern any deductions.