A lift gas treatment system and method for treating lift gas by a high-pressure separation of heavy hydrocarbons and water from the gas stream to be used as lift gas. The system and method first remove water from the lift gas in a first separator. The lift gas is then cooled in a pair of heat exchangers. A second separator separates natural gas liquids (NGLs) from the lift gas. The NGLs are passed through a valve to reduce the temperature and passed to the second heat exchanger. The lift gas is passed through the first heat exchanger to raise the temperature.