SemCAMS inks processing deal for Wapiti gas plant

Dec. 17, 2018

Calgary-based SemCAMS ULC, a subsidiary of SemGroup Corp., Tulsa, has entered a long-term agreement with the Canadian subsidiary of an unidentified international oil and gas company to process sour gas production at its 200-MMcfd gas processing plant now under construction to serve Montney producers in the Wapiti region of the Western Canadian Sedimentary Basin (OGJ Online, Aug. 17, 2016).

The take-or-pay agreement secures 70 MMcfd of Montney gas for a 10-year term for the Wapiti gas plant, which is scheduled for startup in first-quarter 2019 and is now 95% contracted, SemGroup said.

“With the Wapiti plant essentially fully contracted, we are increasing our focus on the Pipestone area development and look forward to continuing our work with producers and the community to safely and efficiently develop the Montney formation,” said Dave Gosse, vice-president and general manager of SemCAMS.

The new agreement follows SemCAMS’s previous announcement that it will build a separate sour gas plant to serve Montney producers in the Pipestone region of the Western Canadian Sedimentary Basin (OGJ Online, Aug. 11, 2017).

The new 280-MMcfd Pipestone Central plant will be connected to the Wapiti gas plant via the Pipestone pipeline, which is currently under construction and scheduled to begin gathering gas from the Pipestone area in fourth-quarter 2019, SemGroup said.