Abstract: The present invention comprises a process for producing liquefied natural gas from the methane that is produced during natural gas liquids extraction. The process includes distilling the feed to extract methane, then cooling and expanding the methane to produce liquefied natural gas and cold methane vapor. The cold methane vapor is employed as a coolant to precool the feed and to cool the methane before expansion, and is then recompressed for reinjection into the well formation. The bottoms from the methane distillation may be further distilled to extract ethane, which may be cooled with the cold methane vapor and combined with the liquefied natural gas product. A portion of the recompressed methane may be diverted from the compressor train, cooled and expanded to produce additional liquefied natural gas and cold methane vapor.