Abstract: In order to enable energy utilization of oil & gas gathering system to be more scientific and effective, the concept of power supply and consumption of distributed energy system is applied to the design of oil & gas gathering system. The principle of "power decided by heat" is used to design distributed energy system of oil & gas gathering: gas turbine and heat recover steam generator (HRSG) are applied to oil & gas gathering system, the gas turbine provides power for the gathering system, the waste-heat of tail gas after power generation is recycled by HRSG to provide heat energy for the gathering system, and the surplus power of the system is connected with the power grid. Through case calculation, results indicate that compared with conventional gathering station, the energy utilization rate of gathering station of distributed energy system is increased by 7.01%, and the efficiency of exergy is increased by 16.5%. At the same time, distributed energy system of gathering station can save RMB 498.29×10⁴ each year. Therefore, it can be seen that, the application of distributed energy system to oil & gas gathering can improve energy conservation and is economical, which is worth popularizing and applying.