SemCAMS, a subsidiary of SemGroup Corporation, announced that it has executed a long-term sour gas transportation contract with an investment grade producer in the Wapiti, Alta.-area. The contract will extend an existing service arrangement on SemCAMSs Northwest Wapiti, Wapiti and Simonette pipeline systems for gas processing at its Kaybob South 3 (K3) gas plant. The transportation for 33 mmcf per day of sour gas is supported by a take-or-pay commitment that is effective until 2027.

In the Wapiti region, work continues on an engineering study for a new 200 mmcf-per-day sour gas processing plant at 35-67-07W6. The plant design will take advantage of synergies with SemCAMSs current infrastructure by transporting the acid gas via existing pipeline for processing at the K3 gas plant. The Wapiti plant will also have local acid gas injection capability for increased reliability.

The study will be complete in the first quarter of 2016 and a final investment decision will follow, provided SemCAMS secures sufficient producer support.