×

SemCAMS Announces Plans to Increase Wapiti Pipeline Capacity

CALGARY, Alberta, Oct. 6, 2014 (GLOBE NEWSWIRE) -- SemCAMS, a subsidiary of SemGroup® Corporation (NYSE:SEMG), today announced plans to construct a new sour gas compressor on its existing Wapiti Pipeline. The new Wapiti compressor will increase pipeline capacity by 30 mmcf/d and deliver to SemCAMS' Kaybob South 3 (K3) gas plant, a world scale sour gas processing facility. The project is supported by a 10-year take-or-pay transportation service agreement with NuVista Energy Inc. This project brings NuVista's contracted service to 77 mmcf/d through SemCAMS facilities.



"SemCAMS is pleased with NuVista's continued growth and the confidence they have in our ability to handle additional liquids rich gas production from the Wapiti/Elmworth area," said David Gosse, SemCAMS' Vice President and General Manager. "We continue to see increased production of liquid rich gas in our Kaybob facilities as producers gain confidence in their resource plays. We understand how important it is to producers that their products get to market reliably and efficiently. We see the Wapiti compressor project as another step in expanding our system to meet these needs. We look forward to further growth and are confident our expansions and proposed new facilities will continue to provide superior service to area producers."

SemCAMS will own and operate the new Wapiti compressor, which is expected to be in service the second quarter of 2016.

SemCAMS envisions continued growth for the Montney gas play. To meet producers' development plans, SemCAMS is undertaking an open season for a new sour gas plant in the Wapiti/Elmworth area. This plant would be capable of processing a minimum 200 mmcf/d with an expected on-stream date in the fourth quarter of 2017. The plant would be designed to maximize NGL recoveries and handle condensate and resource water, with an acid gas injection scheme. This plant would be connected to TCPL, Alliance, Pembina and SemCAMS' existing sour gas pipeline system. SemCAMS' expanded pipeline system and K3 plant bring additional reliability to this project by providing an alternative acid gas handling capability as required.

"SemGroup is excited about this next step for SemCAMS as we continue our long history of meeting producers' needs," said Carlin Conner, CEO of SemGroup. "The new developments in the Montney and Duvernay are changing gas production in the region. We are excited about the position of our assets in this growing area and our ability to adapt as the quality of gas shifts. This undertaking for a new plant demonstrates our commitment to grow with our customers in the Wapiti and Duvernay areas."

Open Season Process

Prospective producers that desire to receive a copy of the non-binding "Expressions of Interest" form should contact Rob Nimmo, Director, Business Development, at (403) 536-3023, or at rnimmo@semgroupcorp.com.

The open season will begin today and close at 5:00 P.M. MST on October 30, 2014. During this time interested parties are encouraged to contact the representative noted above for further information concerning any questions.

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 www.semcams.com.

About SemGroup

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 storing energy.

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.

CONTACT: Investor Relations: Alisa Perkins, 918-524-8081 investor.relations@semgroupcorp.com Media: Kiley Roberson, 918-524-8594 kroberson@semgroupcorp.com

Source:SemGroup Corporation