CALGARY, Alberta, Dec. 13, 2018 (GLOBE NEWSWIRE) -- SemCAMS, a subsidiary of SemGroup® Corporation (NYSE:SEMG), today announced that it has executed a long-term agreement with the Canadian subsidiary of a large international oil and gas company to process sour gas production at its Wapiti Gas Plant. The take-or-pay agreement secures 70 mmcf per day of Montney gas for a 10-year term. The 200 mmcf per day Wapiti Gas Plant, which is expected to be operational in the first quarter of 2019, is now 95 percent contracted.
“We are pleased to secure this long-term processing agreement that effectively fills SemCAMS Wapiti Gas Plant and helps ensure the plant will operate in the most efficient and cost effective manner,” said Dave Gosse, SemCAMS’ Vice President and General Manager. “This agreement underscores the need for our Wapiti Gas Plant and the unique services we are able to offer customers with our existing pipelines and sour gas processing plants. 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.”
In the fall, SemCAMS received Alberta Energy Regulator approval to construct a 280 mmcf per day sour gas plant in the Pipestone area. The new plant will be connected to the Wapiti Gas Plant via the Pipestone pipeline, which is currently under construction and is expected to begin gathering gas from the Pipestone area in the fourth quarter of 2019. The pipeline is designed to provide operational synergies and efficiencies to both the Wapiti plant and the Pipestone plant through SemCAMS integrated pipeline and gas plant system.
For additional information, please contact Rob Nimmo, Director, Business Development, at 403.536.3000.
About SemCAMS
SemCAMS ULC, a subsidiary of SemGroup® Corporation (NYSE:SEMG), is a gathering and processing business which provides midstream solutions for natural gas producers in Western Canada. SemCAMS is one of Alberta’s largest licensed sour gas processors with Duvernay and Montney facilities located near Whitecourt and Fox Creek, and a plant under construction in the Wapiti area south of Grand Prairie. The company also operates sweet gas processing facilities in this region. SemCAMS is based in Calgary, Alberta, Canada.
About SemGroup
SemGroup® Corporation (NYSE:SEMG) moves energy across North America through a network of pipelines, processing plants, refinery-connected storage facilities and deep-water marine terminals with import and export capabilities. SemGroup serves as a versatile connection between upstream oil and gas producers and downstream refiners and end users. Key areas of operation and growth include western Canada, the Mid-Continent and the Gulf Coast. SemGroup is committed to safe, environmentally sound operations. Headquartered in Tulsa, Okla., the company has additional offices in Calgary, Alberta; Platteville, Colo.; and Houston, Texas.
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Contacts:
Investor Relations:
Alisa Perkins
918-524-8081
investor.relations@semgroupcorp.com
Media:
Tom Droege
918-524-8560
tdroege@semgroupcorp.com