CALGARY, Alberta, Sept. 16, 2015 (GLOBE NEWSWIRE) -- SemCAMS, a subsidiary of SemGroup® Corporation (NYSE:SEMG), today announced that it has extended its capture area into the Duvernay region through the commissioning of an un-stabilized condensate gathering line (the "KA North Condensate" pipeline). The KA North Condensate pipeline stretches from 1-33-62-20 W5M to the KA plant and began transporting condensate in early September 2015. In addition, the KA gas plant will re-start an idle condensate stabilizer and will install truck loading facilities capable of loading stabilized condensate. SemCAMS will also construct a second 10-inch raw gas pipeline ("KA North II") to accept additional gas production, currently scheduled for startup in the third quarter of 2016. The total estimated cost of these projects is expected to be approximately $62 million (Cdn).
The KA North Condensate pipeline and associated pressure vessel is supported by a long-term fee-for-service condensate gathering and processing agreement with a significant oil and gas producer. The KA North Condensate pipeline consists of an 8-kilometer, 6-inch un-stabilized condensate gathering pipeline with approximately 17,000 bbls per day of capacity. SemCAMS will own and operate the pipeline, which will have available capacity for Duvernay producers in the area. The gas will be delivered to KA through the KA North pipeline, which is a 10-inch low sour gas pipeline capable of transporting up to 125 mmcf per day. Production will be moved to the KA North II pipeline upon its completion.
The KA Gas Plant will also start up an idle condensate stabilizer facility capable of processing up to nearly 17,000 bbls per day of un-stabilized condensate with an expected startup date of October 2015. The KA Gas Plant is currently capable of processing 5,200 bbls per day and, upon startup of the second stabilizer, will have approximately 22,000 bbls per day of un-stabilized condensate processing capacity. The KA Plant is also constructing a truck loading facility capable of loading over 14,000 bbls per day of stabilized condensate.
The KA plant is located in the heart of the Duvernay region, where producers are actively drilling for liquids-rich gas. By extending its reach, targeting the Duvernay formation in the Kaybob Area, SemCAMS is attracting incremental volumes to the KA plant where there is available gas and now condensate processing capacity. SemCAMS is also evaluating the restart of an existing second plant at KA which is currently idle but would be capable of processing an additional 140 mmcf per day of raw gas.
"We are excited about this opportunity to extend our capture area and increase our inlet hydrocarbon liquids handling capacity at the KA gas plant to meet the needs of our customers," said David Gosse, SemCAMS' Vice President and General Manager. "The KA North Condensate pipeline and the condensate stabilizer projects are consistent with our growth strategy which includes expanding our existing infrastructure to capture incremental liquids-rich gas in the Duvernay area."
For additional information please contact Greg Bosch, Manager, Business Development, at 403.536.3044.
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.
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.
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