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SemCAMS to Construct New 200 MMcf/d Montney Sour Gas Processing Plant; Signs Long-Term Deal with NuVista Energy

/EIN News/ -- CALGARY, Alberta, Oct. 11, 2016 (GLOBE NEWSWIRE) -- SemCAMS, a subsidiary of SemGroup® Corporation (NYSE:SEMG), today announced that it has entered into an agreement with NuVista Energy Ltd. (TSE:NVA) to proceed with a project that will include the processing of up to 120 MMcf/d of sour gas at a new gas plant SemCAMS will build in the Wapiti area of Alberta (the “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.

SemCAMS logo

Construction on the project is expected to begin in the second quarter of 2017, and the total project cost estimate is approximately C$300 million to C$350 million. The Wapiti Gas Plant, licensed by the Alberta Energy Regulator in August, will have the capacity to process up to 200 MMcf/d of raw sour gas and 20,000 barrels per day 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 tonnes per day of sulphur. This capability, which is unique to SemCAMS, provides a reliable long-term egress option for acid gas and the associated sulphur. The Wapiti Gas Plant is expected to be online by the second quarter 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 MMcf/d of Montney gas production, with additional expansion options available. The K3 and KA gas plants are licensed to process approximately 3000 tonnes per day of combined sulphur handling, providing additional sour gas processing options for area producers.

“We are pleased to announce our plans to build the new Wapiti Gas Plant, and the significant expansion of our commitments for a true win-win with our growth oriented customer, NuVista Energy,” said David Gosse, SemCAMS’ Vice President and General Manager. “Our safe and reliable history of operating sour gas plants and our existing infrastructure gives our customers a substantial advantage. This is an exciting project for SemCAMS, and another significant milestone in our strategic growth plans to meet the midstream needs of producers in the world class Montney and Duvernay plays.”

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

About SemGroup
Based in Tulsa, Okla., 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 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, 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.

Investor Relations: 
Alisa Perkins

Kiley Roberson