SemCAMS, a subsidiary of SemGroup® Corporation (NYSE:SEMG), today announced that it has signed a five year take-or-pay transportation service agreement with NuVista Energy Inc. This production from the Wapiti region in Alberta will be delivered by SemCAMS’ operated gathering pipelines to SemCAMS’ Kaybob South 3 (K3) gas plant, a world scale sour gas processing facility.
NuVista is one of many producers experiencing growing production resulting from the drilling activity in the liquids rich Montney shale play in western Canada. This long term commitment to SemCAMS protects NuVista’s investment in wells and field facilities and ensures that their natural gas and associated products can be monetized in downstream markets.
“SemCAMS is pleased with NuVista’s commitment to our facilities and the confidence they have in our ability to handle their liquids rich Wapiti area gas production,” said David Williams, SemCAMS’ General Manager. “We expect increasing amounts of natural gas and natural gas liquids (NGLs) will be attracted to our facilities in the coming years, and we understand how important it is to producers that their products get to market reliably and efficiently.”
“SemCAMS has a long history of supporting producers of sour gas,” Williams continued. “The new developments in the Montney and Duvernay are changing gas production in our region and we intend to adapt our facilities as the quality of gas shifts. SemCAMS is dedicated to the needs of our customers and we are continuing to design and engineer ways to make our plants more efficient to different qualities of gas.”NuVista has been shipping product from this region on an interruptible basis. The firm commitment begins in July 2012. About SemCAMS SemCAMS U.L.C., a subsidiary of SemGroup® Corporation (NYSE:SEMG), is a gathering and processing business which provides midstream solutions for natural gas producers in Western Canada. SemCAMS is one of Alberta’s largest licensed sour gas processors with facilities located near Whitecourt and Fox Creek. The company also operates two sweet gas processing facilities in this region. SemCAMS is based in Calgary, Alberta, Canada. For more information, visit www.semcams.com. About SemGroup Based in Tulsa, Oklahoma, SemGroup® Corporation (NYSE: SEMG) 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.