SemCAMS announces plans for new Montney formation sour gas facility
SEMcams, a subsidiary of SEMGroup Corporation, recently announced plans to build a 280 million cubic feet per day sour gas facility to process sour Montney gas in the Pipestone region of the Western Canadian Sedimentary Basin.
SEMcams has begun preliminary engineering for the facility and submitted the license application to the Alberta Energy Regulator. SEMcams is discussing processing arrangements with area producers.
Discussions are ongoing with numerous area producers, and the final investment decision on the project is expected if SEMcams secures long-term processing arrangements with one or more of those producers.
The proposed gas facility will be able to process 280 million cubic feet per day of raw sour gas with up to 10 percent hydrogen sulfide (H2S) and 16,000 barrels per day of condensate. The facility will have zero sulphur emissions and will remove the acid gas from the production stream
The acid gas will be sent to the existing K3 plant through the Pipestone Pipeline and SemCAMS’ 200-kilometer Simonette/Wapiti pipeline system. Workers at the K3 plant will process the acid gas and remove the sulphur, which will be made into a saleable product.
“The long-term outlook for Montney development, SemCAMS’ expertise at safely and reliably operating sour gas plants, as well as our unique solution for handling the acid gas, makes us the midstream service provider of choice in the area,” SemCAMS Vice President and General Manager David Gosse said. “The Pipestone Central Facility is the next step in SemCAMS’ growth strategy. We look forward to continuing to work with producers to efficiently and effectively develop the Montney formation.”
