Calgary-based SemCAMS ULC, a subsidiary of SemGroup Corp., Tulsa, has completed startup of its Wapiti sour gas processing plant to serve Montney producers in the Wapiti region of the Western Canadian Sedimentary Basin (OGJ Online, Aug. 17, 2016).
The 200-MMcfd plant began processing raw sour gas on Jan. 27 and is now fully operational, more than 2 months ahead of the original Apr. 1 target, SemGroup said.
Construction costs for the plant, which is 95% contracted, came in on budget, the operator said.
Also equipped to process as much as 20,000 b/d of condensate and able to process acid gas, the Wapiti plant is currently connected to Nova Gas Transmission Ltd.’s pipeline to transport sales gas to market, and an additional sales gas connection to the Alliance Pipeline is scheduled to be complete in April.
The dual sales-gas connections ensure customer flexibility and variability on their sales-gas egress. The plant also is interconnected to the other gas plants in the SemCAMS network via the existing Wapiti-Simonette pipeline systems to the Kaybob South No. 3 (K3) and Kaybob Amalgamated (KA) sour gas plants, which have a combined gas processing capacity of 1.5 bcfd and sulfur processing capacity of 350 tonnes/day.
SemCAMS previously secured a commitment by NuVista Energy Ltd., also of Calgary, to become an anchor tenant of the Wapiti gas plant under a 15-year take-or-pay agreement for firm processing of as much as 120 MMcfd of raw gas from its condensate-rich Montney play, as well as a take-or-pay agreement with an unidentified international oil and gas company to process 70 MMcfd of Montney gas for a 10-year term (OGJ Online, Dec. 17, 2018).
With the Wapiti plant now completed, the company plans to move forward with other projects designed to provide additional competitive and cost-friendly midstream services Montney and Duvernay producers, the company said.
One new project includes SemCAMS’s earlier announcement that it will build a separate sour gas plant to serve Montney producers in the WCSB’s Pipestone region (OGJ Online, Aug. 11, 2017).
The 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 this year’s fourth quarter, SemGroup said.
Contact Robert Brelsford at [email protected].