The paper deals with thermo-mechanical exergy analysis of the electricity production by recovering from natural gas pressure reduction station. In this study we present an energy and exergy assessment and modeling of PRS systems for their system analysis, performance evaluation and optimization. A comprehensive case study is conducted in Marmara 1.3 MW pressure reduction station (PRS) in Tekirdag, Turkey and actual thermal data are collected and employed for analysis. Using actual system data, an assessment of the pressure reduction station system performance, energy and exergy efficiencies, and exergy destructions in the system is conducted in this regard. The exergy destructions in the overall PRS are quantified and illustrated. It is observed through analysis that the exergy destructions in the system particularly take place as the exergy of the fluid lost in the turbo expender, the heat exchanger losses of the system. For system performance analysis and improvement, both average energy and exergy efficiencies of the overall PRS are investigated and determined to be 71.96% and 78.25%, respectively.