SemCAMS to construct 200 MMcfd sour gas processing plant
SemCAMS, a subsidiary of SemGroup Corp., has entered into an agreement with NuVista Energy Ltd. to develop a project that will include the processing of up to 120 MMcfd of sour gas at a new gas plant SemCAMS will build in the Wapiti area of Alberta (Wapiti Gas Plant). The 15-year agreement provides for take-or-pay obligations creating a significant backstop for the investment to be made by SemCAMS.
Construction on the project is expected to begin in Q2 of 2017, and the total project cost estimate is approximately $225 MM to $265 MM. The Wapiti Gas Plant, licensed by the Alberta Energy Regulator in August, will have the capacity to process up to 200 MMcfd of raw sour gas and 20 Mbpd of condensate. The new plant will utilize SemCAMS’ existing Wapiti/Simonette pipeline systems, which are connected to SemCAMS’ K3 and KA sour gas plants, to process approximately 350 tpd of sulfur. This capability, which is unique to SemCAMS, provides a reliable long-term egress option for acid gas and the associated sulfur. The Wapiti Gas Plant is expected to be online by Q2 of 2019. Negotiations are underway with other area producers to fully subscribe the remaining plant capacity.
With both the new Wapiti Gas Plant and SemCAMS existing pipeline infrastructure, SemCAMS will be able to process 330 MMcfd of Montney gas production, with additional expansion options available. The K3 and KA gas plants are licensed to process approximately 3000 tpd of combined sulfur handling, providing additional sour gas processing options for area producers.
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