Triethylene glycol (TEG) is widely applied to the removal of water in shale gas. This study presents a framework of economic evaluation and environmental assessment for two TEG-based dehydration approaches, namely, conventional dehydration process and stripping gas dehydration process. The latter one features a higher solvent concentration, at the expense of extra shale gas loss. On the basis of process simulation, the effects of theoretical stage and solvent concentration on economic and environmental performances are investigated for process optimization. A hybrid life cycle inventory (LCI) model that consists of input-output and process-based methods is developed to evaluate the environmental impacts associated with shale gas dehydration. The results show that utility consumption and shale gas loss are dominant sources for the emissions of CO2 and NOx, while soot is mainly derived from embodied emissions. Based on the tradeoff between the total annual cost and environmental impacts, the optimal case with superior economic and environmental performances is acquired. Ultimately, sensitivity analyses are conducted for systematic comparison of two approaches under different compositions of raw shale gas and specifications of water removal.