SemCAMS, a subsidiary of SemGroup Corporation (SemCAMS), 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.”