SemCAMS to construct new 200 MMcf/d Montney sour gas processing plant
October 12, 2016
By Manufacturing AUTOMATION
Oct. 11, 2016 – SemCAMS, a subsidiary of SemGroup Corp., announced today it has entered into an agreement with NuVista Energy Ltd. to proceed with a project that will include the processing of up to 120 MMcf/d of sour gas at a new gas plant SemCAMS in the Wapiti area of Alberta.
According to the parties, the 15-year agreement provides for take-or-pay obligations creating a significant backstop for the investment to be made by SemCAMS.
The Wapiti Gas Plant, licensed by the Alberta Energy Regulator in August, will have the capacity to process up to 200 MMcf/d of raw sour gas and 20,000 barrels per day of condensate. It will utilize SemCAMS’ existing Wapiti/Simonette pipeline systems, which are connected to SemCAMS’ K3 and KA sour gas plants, to process approximately 350 tonnes per day of sulphur. This capability, which is unique to SemCAMS, provides a reliable long-term egress option for acid gas and the associated sulphur.
Construction of the $300 to $350-million project is expected to begin in the second quarter of 2017 and is scheduled to be online by the second quarter of 2019.
“We are pleased to announce our plans to build the new Wapiti Gas Plant, and the significant expansion of our commitments for a true win-win with our growth oriented customer, NuVista Energy,” said David Gosse, SemCAMS’ vice president and general manager. “Our safe and reliable history of operating sour gas plants and our existing infrastructure gives our customers a substantial advantage. This is an exciting project for SemCAMS, and another significant milestone in our strategic growth plans to meet the midstream needs of producers in the world class Montney and Duvernay plays.”
With both the new Wapiti Gas Plant and SemCAMS existing pipeline infrastructure, SemCAMS says it will be able to process 330 MMcf/d of Montney gas production, with additional expansion options available.
— With files from SemCAMS
