SemCAMS, a subsidiary of SemGroup® Corporation, has announced that it has received Alberta Energy Regulator approval for its planned 200 million ft3/d sour gas plant (the Wapiti Gas Plant), which will provide much needed sour processing options to Montney producers in the Wapiti region of the Western Canadian Sedimentary Basin.
The proposed new gas plant, which will be located at 07-35-067-7W6M, has been designed to process up to 200 million ft3/d of raw sour gas and 20 000 bpd of condensate. With producer concerns over the long term reliability of acid gas injection in the area, the Wapiti Gas Plant will be able to send the acid gas to SemCAMS’ existing K3 and KA sour gas plants via existing infrastructure.
This solution, which is unique to SemCAMS, provides a reliable long term egress option for the acid gas, and has been well received by those actively drilling in the area. Negotiations are underway with multiple area producers to lock in long term processing arrangements, and SemCAMS final investment decision of the project is expected upon execution of one or more of those agreements.
“The Wapiti area and this new gas plant are key components of our overall growth strategy and, with the engineering and licence approval now in hand, we are excited about moving this project to the next phase. SemCAMS has a long and successful history of safely operating sour gas plants, and we are looking forward to expanding that expertise in the Wapiti area and to Montney producers with this new facility,” said David Gosse, SemCAMS’ Vice President and General Manager.
Adapted from press release by Francesca Brindle