SemCAMS Signs Long-Term Processing Agreements, Announces Duvernay Sour Gas Plant

CALGARY (GLOBE NEWSWIRE) -- SemCAMS, a subsidiary of SemGroup^® Corporation, today announced that it has signed 15-year gas processing agreements with Murphy Oil Company Ltd., a wholly owned subsidiary of Murphy Oil Corporation and Athabasca Oil Corporation. The agreements establish long-term relationships with two active operators developing the Duvernay and Montney in the Kaybob area. In order to support these customers, SemCAMS announced construction of a new sour gas plant (“Smoke Lake Gas Plant”) which is underpinned by the production outlined in the agreements. The plant will be located at 15-11-062-20W5M. 

The first stage of the Smoke Lake Gas Plant will have capacity to process 60 mmcf per day of sweet and sour Montney and Duvernay gas and is expected to be operational in the fourth quarter of 2019. The Smoke Lake Gas Plant has 90 percent of available capacity contracted and can be expanded as customer needs continue to grow. Discussions are continuing with other area producers who may require additional capacity.

The Smoke Lake Gas Plant will be interconnected with SemCAMS’ existing KA and K3 gas plants to leverage the sour processing and other ancillary services those facilities offer. SemCAMS’ network of sour gas processing facilities will allow for rerouting of gas during plant turnarounds, outages and curtailments thereby ensuring reliability and uptime for producer production. Following the completion of the Smoke Lake Gas Plant and the Wapiti Plant currently under construction, SemCAMS will have a combined 1.7 bcf per day of sour gas processing capacity licensed in Canada, further enhancing our foundation for future operational synergies and growth in this very active region of the Western Canadian Sedimentary Basin.

“The Smoke Lake Gas Plant further emphasizes SemCAMS’ commitment to growth and our focus on being the midstream processer of choice for area producers. Our long history of safe and reliable operation of sour gas plants, as well as the benefit of our existing infrastructure, give us a significant competitive advantage. This is another great milestone for SemCAMS, and we look forward to more in the near future as we execute on our growth strategy, working closely with Duvernay and Montney producers to expand our services to meet their midstream needs,” said David Gosse, SemCAMS’ Vice President and General Manager

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