SemCAMS Announces Plans to Construct New Pipeline
CALGARY, Alberta, May 20, 2014 (GLOBE NEWSWIRE) -- SemCAMS, a subsidiary of
SemGroup^® Corporation (NYSE:SEMG), today announced plans to construct a new,
sour gas gathering line adjacent to its existing Northwest Wapiti Pipeline.
The project is supported by a 10-year term transportation service agreement
with NuVista Energy Inc. that is underpinned by a take-or-pay arrangement.
"SemCAMS is pleased with NuVista's commitment and the confidence they have in
our ability to handle their liquids rich Wapiti area gas production," said
David Williams, SemCAMS' General Manager. "We expect increasing amounts of
natural gas and natural gas liquids (NGLs) will be attracted to our facilities
in the coming years, and we understand how important it is to producers that
their products get to market reliably and efficiently."
The new gathering system will be called the Northwest Wapiti Loop and consists
of a 21 mile, 8 inch, sour gas gathering pipeline with 30 mmcf/d of capacity.
SemCAMS will own and operate the new pipeline which is expected to be in
service as early as the second quarter of 2015.
The Northwest Wapiti Pipeline and the new Northwest Wapiti Loop are located in
the heart of the Montney region where producers are actively drilling for
liquids-rich gas. The pipeline will deliver this production to SemCAMS' Kaybob
South 3 (K3) gas plant, a world scale sour gas processing facility. SemCAMS
and its partners continue to invest in the K3 plant and have recently improved
propane recoveries up to 90%, added liquids handling capacity, plan to replace
its Sulphur Recovery Unit Condenser in June 2014 to improve reliability, and
added truck and rail loading facilities. Currently, the K3 plant has available
processing capacity. SemCAMS can add an additional 30 mmcf/d of compression to
the Wapiti Pipeline if it receives commitments to support the project.
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,
Based in Tulsa, Oklahoma, 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
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
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
CONTACT: Investor Relations:
Alisa Perkins, 918-524-8081
Kiley Roberson, 918-524-8594
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