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SemCAMS acquires pipelines, compression and dehydration facilities

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World Pipelines,

SemCAMS, a subsidiary of SemGroup® Corp., has announced that it has acquired gas and condensate facilities in the Kaybob area of Alberta, Canada, for approximately CAN$38 million. The recently constructed facilities include field compression, dehydration and condensate handling equipment which complements the previously announced SemCAMS KA North Condensate pipeline, KA North II gas pipeline and the KA Gas Plant condensate stabiliser. The acquisition is supported by an acreage dedication, economic return assurances, and a 20-year long-term agreement with a significant oil and gas producer.

The facilities are currently capable of handling 40 million ft3/d of gas and associated liquids, with ability to expand up to 80 million ft3/d.

SemCAMS has also reported the successful commissioning of a 17 000 bpd condensate stabilizer at its KA gas plant, which came online earlier in November. The acquired facilities and the previously announced projects at the KA Gas Plant further support SemCAMS’ long-term commitment to be the premier midstream service provider in the liquids-rich Duvernay development area.

In the Wapiti region, work continues on a FEED study for a new 200 million ft3/d sour gas processing plant to be located at 35-16-67-7W6. The plant would be designed to take advantage of synergies with existing SemCAMS infrastructure, including the ability to process acid gas via both acid gas injection and by transport via existing pipeline to the SemCAMS’ K3 Gas Plant. The study will be complete in 1Q16, and a final investment decision will follow thereafter provided SemCAMS secures sufficient producer support.

“The Durvernay and Montney projects further strengthen our position in these active development areas, and they clearly support our growth strategy which includes expansion and optimisation of our significant existing infrastructure, and construction of new greenfield projects, to meet our customers’ long-term midstream gathering and processing needs,” said David Gosse, SemCAMS’ Vice President and General Manager.

Edited from press release by

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