SemGroup® Corporation (NYSE:SEMG) and Exterran Holdings, Inc. (NYSE: EXH) announce the development of a new gas processing plant for SemGas ®, L.P. The new plant and equipment are needed to meet the growing demand for midstream services in the Mississippi play.
“SemGroup is focused on capturing the growing demand for midstream services,” says Norm Szydlowski, President and Chief Executive Officer of SemGroup. “We are excited about this new opportunity for growth and what it means for our business and shareholders.”
SemGas ® has entered into a Letter of Intent with Exterran, a global leader in full service natural gas compression and processing, to purchase a new gas processing plant and associated compression equipment. It is expected that the plant will be designed and fabricated by Exterran to handle a throughput of 60 million cubic feet per day of gas, and will feature state-of-the-art cryogenic technology for natural gas liquid extraction and enhanced ethane recovery. Exterran offers pre-engineered processing plants in 60, 150 and 200 million cubic feet per day nominal capacity to meet the demanding performance and delivery needs of today’s leading midstream service providers.
“The agreement with Exterran is another step forward in our strategy to become the service provider of choice among active producers in the Mississippi Zone,” says Wayne Ziegler, Vice President of SemGas. “We believe there is an immediate and growing need for more processing capacity in SemGas’ Northern Oklahoma system.”Matt Sucy, Regional Vice President for Exterran, adds, “Commodity pricing in today’s market dictates an ever increasing focus on natural gas liquids extraction. Exterran is proud to provide the processing and compression equipment and services to SemGas intended to maximize the value of their clients’ produced natural gas. ” About SemGas Based in Tulsa, OK, SemGas ®, L.P., a subsidiary of SemGroup ® Corporation, offers customers natural gas gathering, processing and marketing services. As part of the U.S. energy industry’s midstream segment, SemGas ® provides infrastructure that helps gather gas from the wellhead and moves it to the marketplace. About SemGroup Based in Tulsa, Oklahoma, SemGroup® Corporation 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.