System and method for separating natural gas liquid and nitrogen from natural gas streams

A system and method for removing nitrogen and producing a high pressure methane product stream and an NGL product stream from natural gas feed streams where at least 90%, and preferably at least 95%, of the ethane in the feed stream is recovered in the NGL product stream. The system and method of the invention are particularly suitable for use with feed streams in excess of 5 MMSCFD and up to 300 MMSCFD and containing around 5% to 80% nitrogen. The system and method preferably combine use of strategic heat exchange between various process streams with a high pressure rectifier tower and the ability to divert all or a portion of a nitrogen rejection unit feed stream to optionally bypass a nitrogen fractionation column to reduce capital costs and operating expenses.