An improved method is provided for removing contaminants from a hydrocarbon stream, such as a stream of raw natural gas. The contaminated hydrocarbon stream is passed through a first adsorbent bed containing molecular sieves to adsorb contaminants on the molecular sieves, thereby removing at least some of the contaminants from the hydrocarbon stream. The contaminated hydrocarbon stream may optionally be passed through a second adsorbent bed containing a desiccant material other than molecular sieves. The molecular sieves are regenerated using a wet regeneration process in which both the water content and temperature of the regeneration fluid stream are staged. The molecular sieves and the desiccant material can also be regenerated by contacting the desiccant material with a regeneration fluid stream comprising water to adsorb at least a portion of the water onto the desiccant material, thereby forming a regeneration fluid stream that is at least partially dried and in contact with a desiccant material that is at least partially hydrated. The hydrated desiccant material is heated to release adsorbed water into the partially dried regeneration fluid stream while such regeneration fluid stream is passed through the molecular sieves to desorb and remove at least a portion of the contaminants adsorbed on the molecular sieves. A method for producing liquefied natural gas employing such improved method is also disclosed.