SemCAMS plans Pipestone sour gas plant

Aug. 11, 2017
Calgary-based SemCAMS ULC, a subsidiary of SemGroup Corp., Tulsa, is planning to build a sour gas processing plant to serve Montney producers in the Pipestone region of the Western Canadian Sedimentary Basin.

Calgary-based SemCAMS ULC, a subsidiary of SemGroup Corp., Tulsa, is planning to build a sour gas processing plant to serve Montney producers in the Pipestone region of the Western Canadian Sedimentary Basin.

Designed to process 280 MMcfd of raw, sour gas containing as much as 10% hydrogen sulfide and 16,000 b/d of condensate, the proposed Pipestone Central plant will be connected to SemCAMS’ existing infrastructure through a separately proposed Pipestone pipeline, SemGroup said.

Like the company’s 200-MMcfd Wapiti sour gas processing plant currently under construction in the region, the Pipestone Central plant will have zero-sulfur emissions and will be equipped to remove acid gas from the production stream for transport out of the area via SemCAMS’s existing 200-km Wapati-Simonette and proposed Pipestone pipeline systems to its Kaybob South No. 3 sour gas plant for further processing and sulfur removal (OGJ Online, Aug. 17, 2016).

With a license application for the project already submitted to the Alberta Energy Regulator, preliminary engineering for the gas plant is now under way.

The company plans to submit a separate application for the Pipestone pipeline at a future date.

Currently in negotiations with multiple producers in the region to secure long-term processing commitments, SemCAMS will take final investment decision on the proposed plant upon executing one or more of those agreements, SemGroup said.

If approved, the Pipestone Central plant will boost SemCAMS’ licensed sour gas processing capacity in Canada to more than 1.9 bcfd.

SemGroup also confirmed the Wapiti gas plant remains on budget and on schedule for startup in early 2019 (OGJ Online, Oct. 12, 2016).

Contact Robert Brelsford at [email protected].