SemCAMS Announces License Application for New Sour Gas Facility to Further Service Development of the Montney Formation

8/10/2017

CALGARY, Alberta, Aug. 10, 2017 (GLOBE NEWSWIRE) -- SemCAMS, a subsidiary of SemGroup® Corporation (NYSE:SEMG), today announced plans to build a new 280 million cubic feet per day sour gas facility to process sour Montney gas in the Pipestone region of the Western Canadian Sedimentary Basin (“Pipestone Central Facility”).  

The proposed new gas facility, which will be located at 12-17-70-08 W6M, is being designed to process 280 million cubic feet per day of raw sour gas with up to 10 percent H2S and 16,000 barrels per day of condensate. Preliminary engineering for the new gas facility is already underway and the license application has been submitted to the Alberta Energy Regulator. Discussions are ongoing with numerous area producers, and the final investment decision on the project is expected if SemCAMS secures long-term processing arrangements with one or more of those producers.

The new facility will be connected to SemCAMS’ existing infrastructure through the proposed Pipestone Pipeline to enhance operations and reliability. Application for the Pipestone Pipeline will be separately submitted at a later date. Similar to the Wapiti Gas Plant that SemCAMS is currently constructing, the Pipestone Central Facility will have zero sulphur emissions and will remove the acid gas from the production stream and send it out of the area to the existing K3 plant through the Pipestone Pipeline and SemCAMS’ 200 kilometer Simonette/Wapiti pipeline system. At the K3 plant, the acid gas will be processed and the sulphur removed and formed into a saleable product. This strategic advantage, which is unique to SemCAMS, eliminates the need to inject the acid gas in the ground and reduces area stakeholder concerns around sulphur emissions and underground acid gas storage. 

SemCAMS’ Wapiti Gas Plant is under construction, on budget and on schedule for early 2019 startup. Construction of the new Pipestone Central Facility will increase SemCAMS’ licensed sour gas processing capacity to over 1.9 billion cubic feet per day in Canada, providing an excellent foundation for future operational synergies and growth opportunities in this very active region of the Western Canadian Sedimentary Basin.

“The long-term outlook for Montney development, SemCAMS’ expertise at safely and reliably operating sour gas plants, as well as our unique solution for handling the acid gas, makes us the midstream service provider of choice in the area,” said David Gosse, SemCAMS’ Vice President and General Manager. “The Pipestone Central Facility is the next step in SemCAMS’ growth strategy. We look forward to continuing to work with producers to efficiently and effectively develop the Montney formation.”

For additional information, please contact Rob Nimmo, Director Business Development, at 403.536.3023.

About SemCAMS

SemCAMS U.L.C., 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 facilities located near Whitecourt and Fox Creek. The company also operates two sweet gas processing facilities in this region. SemCAMS is based in Calgary, Alberta, Canada. For more information, visit www.semcams.com.

About SemGroup

Based in Tulsa, Oklahoma, SemGroup® Corporation (NYSE:SEMG) is a publicly traded midstream service company providing the energy industry the means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end-users and consumers of crude oil, natural gas, natural gas liquids, refined products, residual fuel oil and asphalt. Services include purchasing, selling, processing, transporting, terminalling and storing energy.

SemGroup uses its Investor Relations website and social media outlets as channels of distribution of material company information. Such information is routinely posted and accessible on our Investor Relations website at www.semgroupcorp.com, our Twitter account and LinkedIn account.

Forward-Looking Statements

Certain matters contained in this Press Release include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.

All statements, other than statements of historical fact, included in this Press Release may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include the risk factors discussed from time to time in each of our documents and reports filed with the SEC.

Readers are cautioned not to place undue reliance on any forward-looking statements contained in this Press Release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.

 

Contacts:
Investor Relations:
Alisa Perkins
918-524-8081
investor.relations@semgroupcorp.com 

Media:
Tom Droege
918-524-8560
tdroege@semgroupcorp.com

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Source: SemGroup Corp.
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