An apparatus is disclosed for removing water from gases produced from a hydrocarbon reservoir penetrated by a well, the apparatus comprising: a first conduit extending through the well for producing gases; a second conduit extending through the well for producing liquid hydrocarbons; a pump connected to pump liquid hydrocarbons from the hydrocarbon reservoir through the second conduit; and a gas dehydrator located in the first conduit below a ground surface for removing water from produced gases flowing through the first conduit. A method is also disclosed for removing water from gases produced from a hydrocarbon reservoir penetrated by a well, the method comprising: flowing gases from a hydrocarbon reservoir through a first conduit extending through the well; at least partially dehydrating the gases by flowing the gases through a gas dehydrator located in the first conduit below a ground surface; and pumping liquid hydrocarbons from the hydrocarbon reservoir through a second conduit extending through the well.