A system and method for cooling and liquefying a gas in a heat exchanger that includes compressing and cooling a mixed refrigerant using first and last compression and cooling cycles so that high pressure liquid and vapor streams are formed. The high pressure liquid and vapor streams are cooled in the heat exchanger and then expanded so that a primary refrigeration stream is provided in the heat exchanger. The mixed refrigerant is cooled and equilibrated between the first and last compression and cooling cycles so that a pre-cool liquid stream is formed and subcooled in the heat exchanger. The stream is then expanded and passed through the heat exchanger as a pre-cool refrigeration stream. A stream of gas is passed through the heat exchanger in countercurrent heat exchange with the primary refrigeration stream and the pre-cool refrigeration stream so that the gas is cooled. A resulting vapor stream from the primary refrigeration stream passage and a two-phase stream from the pre-cool refrigeration stream passage exit the warm end of the exchanger and are combined and undergo a simultaneous heat and mass transfer operation prior to the first compression and cooling cycle so that a reduced temperature vapor stream is provided to the first stage compressor so as to lower power consumption by the system. Additionally, the warm end of the cooling curve is nearly closed further reducing power consumption. Heavy components of the refrigerant are also kept out of the cold end of the process, reducing the possibility of refrigerant freezing, as well as facilitating a refrigerant management scheme.