SemCAMS – a subsidiary of SemGroup Corporation – has announced the execution of a long-term sour gas transportation contract with an investment grade producer in the Wapiti, Alberta area (Canada).
The contract will extend an existing service arrangement on SemCAMS' Northwest Wapiti, Wapiti and Simonette Pipeline systems (Wapiti Pipeline System) for gas processing at SemCAMS' Kaybob South 3 (K3) gas plant. The transportation for 33 million ft3/d of sour gas is supported by a take-or-pay commitment that is effective until 2027.
In the Wapiti region, work continues on an engineering study for a new 200 million ft3/d sour gas processing plant to be located at 35-67-7W6M. The plant design will take advantage of synergies with SemCAMS' current infrastructure, by transporting the acid gas via existing pipeline for processing at the K3 Gas Plant. The Wapiti Plant will also have local acid gas injection capability for increased reliability. The study will be complete in 1Q16, and a final investment decision will follow thereafter, provided SemCAMS secures sufficient producer support.
"SemCAMS is pleased with the continued development in the Wapiti/Elmworth area. The execution of this agreement is another example of the long-term commitment the area is experiencing, and further reflects the support and confidence that producers have in SemCAMS as the transportation and processing service provider of choice," said David Gosse, SemCAMS' Vice President and General Manager.
"We continue to see long-term commitments by producers for the development of the Montney resource play in the Wapiti area. Our projects in the Montney and Duvernay plays further strengthen our position in this growing area. These projects also clearly support our growth strategy to expand and optimise our existing infrastructure, and to construct new, greenfield projects to meet our customers' long-term midstream gathering and processing needs."
Edited from source by Stephanie Roker
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/15012016/semcams-sour-gas-transportation-contract/