SemCAMS has proposed another new sour gas facility south of Grande Prairie. The SemGroup Corporation subsidiary says it has applied for a licence to build a 280 million cubic feet per day plant to process sour Montney gas in the Pipestone region.
The Pipestone Central Facility could also produce up to 16,000 barrels of condensate per day, and would be connected to existing infrastructure though a proposed Pipestone Pipeline. An application for the pipeline will be submitted later on.
SemCAMS says preliminary engineering for the sour gas facility is already underway and the licence application has been submitted to the Alberta Energy Regulator. It adds that discussions are underway with local producers, and the project is expected to go ahead if it secures long-term processing arrangements with one or more.
Construction is already underway on SemCAMS’ Wapiti Gas Plant, also in the Montney area. That $300 to $350 million facility is reportedly on budget and on schedule to startup in early 2019. It has a 15 year agreement with NuVista Energy to process up to 120 million cubic feet of sour gas a day.