Abstract: Gas at elevated temperature from a compressor (50) is fed to a first cooling coil (14) and thence to a second cooling coil (18) in chamber (16). The cooled gas at line (20) enters a chamber (22) where water and oil (if present) separate. A contaminant-free stream of compressed gas is further purified at filter chambers (28, 34). A portion of the gas flow, carrying the liquefied water or water/oil mixture is returned via reducing valve (44) to the interior of chamber (16) where it travels up riser pipe (46) in heat-exchanging relationship with the gas in coil (18) and emerges through port (48) as a condensate-free gas stream, the condensate having re-volatilized after passage through the reducing valve (44). The described arrangement minimizes or eliminates watery waste and cools the gas stream without the need for a powered cooler or supply of cooling water.