Alberta regulator approves plan for sour gas plant

The Alberta Energy Regulator (AER) has approved Calgary-based SemCAMS ULC, a subsidiary of SemGroup Corp., Tulsa, to build its proposed Wapiti sour gas processing plant, which would serve Montney producers in the Wapiti region of the Western Canadian Sedimentary Basin.

SemCAMS received AER’s engineering and license approval for the project on Aug. 17, SemGroup said.

Designed to process as much as 200 MMcfd of raw sour gas and 20,000 b/d condensate, the Wapiti plant would be able to process acid gas via both acid-gas injection and by transport via SemCAMS’s existing pipeline systems to its Kaybob South No. 3 (K3) and Kaybob Amalgamated (KA) sour gas plants, which have a combined processing capacity of 1.5 bcfd.

Currently in negotiations with multiple producers in the region to secure long-term processing commitments, SemCAMS plans to take final investment decision on the proposed plant upon executing one or more of those agreements, SemGroup said.

While a firm timeline for the project has yet to be confirmed, SemGroup told investors in an Oct. 6, 2014, release that it expected to commission the Wapiti plant in fourth-quarter 2017.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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