SemGroup subsidiary SemCanada has signed a purchase and sale agreement to buy Central Alberta Midstream from BP Canada Energy Company and Chevron Canada Resources. The purchase price was not disclosed.
The purchase of Central Alberta Midstream (CAMS), the largest licensed sour gas processor in Alberta, Canada, is expected to close during first quarter 2005 upon completion of regulatory approval.
Three sour gas plants are included in the purchase: Kaybob South No. 3, Kaybob Amalgamated and West Whitecourt. The fourth plant, West Fox Creek, is a sweet gas processing facility. At present, the plants process a total of 700 million cubic feet of gas per day from approximately 1,000 wells located across 181 townships, representing a 25,000 square-mile catch area.
Tom Kivisto, SemGroup president and CEO, commented: The CAMS plants have a working capacity of 900 million cubic feet of gas per day, but their combined licensed capacity is 1.5 billion cubic feet of gas per day. These plants are 100% fee-based which makes them excellent complements to our existing business.
Kivisto confirmed that CAMS will retain its name and logo identity in Canada.