SemCAMS announces plans to increase Wapiti Pipeline capacity

SemCAMS, a subsidiary of SemGroup® Corporation, has announced plans to construct a new sour gas compressor on its existing Wapiti Pipeline. The new Wapiti compressor will increase pipeline capacity by 30 million ft³/d and deliver to SemCAMS' Kaybob South 3 (K3) gas plant. The project is supported by a 10-year take-or-pay transportation service agreement with NuVista Energy Inc. This project brings NuVista's contracted service to 77 million ft³/d through SemCAMS facilities.

"SemCAMS is pleased with NuVista's continued growth and the confidence they have in our ability to handle additional liquids rich gas production from the Wapiti/Elmworth area," said David Gosse, SemCAMS' Vice President and General Manager. "We continue to see increased production of liquid rich gas in our Kaybob facilities as producers gain confidence in their resource plays. We understand how important it is to producers that their products get to market reliably and efficiently. We see the Wapiti compressor project as another step in expanding our system to meet these needs. We look forward to further growth and are confident our expansions and proposed new facilities will continue to provide superior service to area producers."

SemCAMS will own and operate the new Wapiti compressor, which is expected to be in service in Q2 2016. SemCAMS envisions continued growth for the Montney gas play. To meet producers' development plans, SemCAMS is undertaking an open season for a new sour gas plant in the Wapiti/Elmworth area. This plant would be capable of processing a minimum of 200 million ft³/d with an expected on-stream date in Q4 2017. The plant would be designed to maximise NGL recoveries and handle condensate and resource water, with an acid gas injection scheme. This plant would be connected to TCPL, Alliance, Pembina and SemCAMS' existing sour gas pipeline system. SemCAMS' expanded pipeline system and K3 plant bring additional reliability to this project by providing an alternative acid gas handling capability as required.

"SemGroup is excited about this next step for SemCAMS as we continue our long history of meeting producers' needs," said Carlin Conner, CEO of SemGroup. "The new developments in the Montney and Duvernay are changing gas production in the region. We are excited about the position of our assets in this growing area and our ability to adapt as the quality of gas shifts. This undertaking for a new plant demonstrates our commitment to grow with our customers in the Wapiti and Duvernay areas."

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/07102014/semcams-announces-plans-to-increase-wapiti-pipeline-capacity-882/